There was a 25% uptick in projects staring in the three months to the end of May, research from Glenigan has found.
This represents a 10% increase on 2024 figures.
Allan Wilen, economic director at Glenigan, said: “The industry will welcome these results as, despite the downturn in major projects (Construction projects valued at >£100m) recently shown in the May Review, the underlying market, which represents the majority of work across the sector, appears to be on the up.
“Perhaps a higher degree of ‘relatively’ good news business stories coming from Downing Street is giving many investors that boost they so desperately needed to get building. Certainly, if the very strong figures in the residential vertical are anything to go by, we’ll likely see the curve continue to rise into H.2 2025.
“Of course, the much-anticipate Spending Review is revealed this month and should have an interesting effect on industry confidence. Coming out just shy of our own Spring/Summer Forecast these two documents should offer a fascinating indicator of the future direction of activity across UK construction.”
Performance was driven by the residential construction market, which rocketed 49% on the preceding three months to finish 45% higher than last year.
At the other end of the spectrum the non-residential sector fell by almost a fifth (-18%) compared to 2024 numbers.
Regional outlook
Construction activity is improving in the South West, increasing 27% against the preceding three months to stand 24% up against the previous year.
The North West performed similarly, rising 58% against the preceding three months and rising 1% against the previous year.
The South East and London both experienced mixed results, rising 30% against the preceding three months but falling by 2% from the previous year.
Construction activity increased by 21% in the North East against the preceding three months to stand 10% up against the previous year.
The West Midlands increased 34% against the preceding three months to stand 11% up against the previous year.