The October 2025 version of Glenigan’s Building Index, reviewing the 3 months to the top of September 2025, paints a bleak image of constant decline.
It says that the upward push in mission begins noticed over spring and summer time now really feel ‘like a far off reminiscence’.
Simply taking a look at initiatives valued at below £100m – what Glenigan calls ‘underlying’ initiatives – the whole worth of labor beginning on-site within the 3 months to September declined through 16%, ultimate 15% not up to the similar length in 2024.
Efficiency fell in each the residential and non-residential sectors. The worth of residential begins within the quarter used to be down 26% at the previous 3 months and through 24% at the yr.
The worth of non-residential begins used to be down 9% in opposition to the previous 3 months and 5% in comparison to 2024.
Vibrant spots come with a 32% upward thrust in place of work begins in opposition to the previous 3 months and up 123% at the earlier yr. Notable initiatives within the sector come with an £86m revamp of Bush Space, the previous BBC Global Provider headquarters and a £59m retrofit of 30 Finsbury Sq. within the Town of London.
Glenigan financial director Allan Wilen mentioned: “It feels quite like déjà vu, the place encouraging indicators in the midst of the yr have another time given technique to additional decline. In fact, there are a number of various factors at play. Having a look on the residential marketplace, mission begins have faltered over the last quarter, which, most likely, displays the slower-than-anticipated restoration in area buyer self belief, coupled with ongoing developmental delays. That is partly because of sluggish BSR (Construction Protection Regulator) approvals, which account for the pointy fall we registered within the condo sub-vertical.
He endured: “It used to be nice to peer place of work begins proceed its ascendancy and inspiring to peer self belief flooding again right into a vertical which has been in large part subdued in recent times. On the other hand, those sure effects weren’t just about sufficient to mitigate the deficient efficiency in different quarters, specifically well being and training, which eclipsed those outlying spaces of enlargement. As uncertainty as soon as once more tightens its grip, the trade will probably be taking a look forward to the fall funds to peer what rabbits, on the other hand small, the chancellor can pull from her hat, to lend a hand kick-start task.”
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