The value of residential project starts fell by 2% in October against the previous three months, suggesting construction activity is currently in a state of stagnation.
This also represents a reduction of 9% from 2023 levels.
The analysis comes from Glenigan, a provider of construction project sales leads.
Allan Wilen, Glenigan’s economic director, said, “Many will be disappointed that the hopes of revival, often heralded by the election of a new government, have not yet come to fruition.
“Confidence remains low in the private sector, not helped by the prospect of the upcoming Autumn Budget Statement, which many see sweeping changes to tax and planning policy.
“Investors are, understandably, cautious. Likewise, a lack of clarity on public sector spending has also pushed back project start dates and left some up in the air altogether.”
The North East and Wales experienced the greatest falls in project-starts against the preceding quarter, cascading 44% and 36%, respectively. Both regions also plummeted on the previous year, declining 39% and 47%.
Yorkshire also performed badly, with project-starts falling 28% against the preceding quarter to stand 16% lower than a year ago.
The value of starts in London declined 9% against the preceding three months and remained 26% down on the previous year.
However, there were a few bright spots. Project-starts in both the South West (+14%) and Northern Ireland (+7%) grew against the preceding three-month period, advancing 13% and 42% against a year ago, respectively.
This was also the case in the East of England, which experienced an increase against both the preceding three months (+8%) and the previous year (+14%).
Wilen added: “Everyone will be on tenterhooks to see what will come out of the Spending Review, but this is still months away and leaving many high and dry. It makes an uncertain situation even more precarious, and the sector is in a delicate position, highlighted by the collapse of ISG and its subsidiaries last month.
“However, the sector has weathered far worse storms than this, and it was encouraging to see Hotel and Leisure starts way up on previous figures, hinting at a much-needed revival in one of the UK’s hardest-hit verticals.
“Hopefully, clarity on the announcements will help to assuage the unease, which is having a significant knock-on effect on almost every other vertical, dampening overall construction-starts.”