One of the main goals of the current Government is to get Britain building again. They want to see new housing, new towns, new infrastructure, and more. So, how well are we doing? The latest Glenigan Construction Index gives an interesting insight. We want to have a closer look at some of the more important details here. Then, if you need any help and want an architect in London, you can speak to us.
The headline
Overall, the Index makes quite good reading for the construction industry. It said there has been an impressive 9% increase in project starts in Q2 2025. Interestingly, this is all projects with values below £100m.
This broad finding aligns nicely with an optimistic forecast from Glenigan. They were anticipating that we’ll see a 24% boost in starts by 2027. The key driver here is more optimism in the industry.
Growth areas
The Index also takes a closer look at different aspects of the construction industry to see how they are performing. Two key areas have had impressive growth in new starts.
Most significantly, residential construction is riding a strong wave of interest. There has been a big 10% increase in starts over Q1. The main driver is private housing, with 24% on last quarter and 40% year on year. This aligns with the Government’s goal to build 1.5 million new homes during their time in power. As a top architect in London with a great portfolio of residential work, it is great to see confidence return so strongly.
Another area to see very positive signs is non-residential projects. There has been a 7% increase in starts overall. The biggest growth here has been office starts. They’re up an impressive 39% by quarter and 64% year on year. There is high demand at the moment for the modern offices that can cater for today’s dynamic economy.
A tricky sector
One of the most interesting findings in the Index is civil engineering activity is up by 15% on Q1. That is a positive sign that more projects are getting off the ground. However, the sector was much stronger in 2024, with current starts actually down 21% on last year.
Social housing
The major negative in the Index is social housing has had a dramatic turn. Sadly, it was a 33% drop on Q1. Looking at 2024, it is 24% down. This shows how tricky it is at the moment for councils across the UK to create more housing.
Start your project with a top architect in London
While there are positives and negatives from the Index, the construction industry will generally be quite pleased. It shows there is more positivity in many areas and spikes of activity in some key ones like private housing and offices. Most importantly, it indicates that the market is attracting more investment. It could be the start of a period of sustained growth and activity.
If you are thinking about a project, we’d love to see your ideas and the site. We can provide a full range of services, including designs and assistance with getting planning permission. We have experience with project management too. Whether it is a home, housing, a mixed use development, office space, retail, or anything else, we’re the ideal architect in London.
So, get in touch today and let us know if you have any questions, special requests, challenges to overcome, or other things to address.