Residential construction starts down 15% on quarter
Summary
Glenigan’s September 2026 Construction Index shows residential construction starts fell sharply in the three months to the end of August, with private housing and social housing both down significantly year on year. The article says developers are reassessing site viability amid weak sales, higher build costs and the impending building safety levy, while non-residential activity is performing better.
Why it matters
Lower residential starts can affect the pipeline of new homes that surveyors may be asked to inspect, value or advise on over coming months. The reference to the building safety levy and rising construction costs is also relevant to viability assessments and development risk.
Key points
- Residential starts fell 15% quarter on quarter and 36% year on year.
- Private housing starts were down 8% on the previous three months and 37% on the year.
- Social housing starts fell 29% quarter on quarter and 30% year on year.
- Developers are reviewing site viability due to weak sales, higher costs and the building safety levy.
- Non-residential sectors, including office, industrial and health, showed growth.
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