Housing starts down 34%, Glenigan data shows

Residential project starts and planning approvals dropped in the latest quarter, according to Glenigan.

The analyst’s latest construction review, which covers the three months to the end of June, showed project starts had fallen 34% year-on-year, while detailed planning approvals slipped 16%.

This was driven by a drop in construction of private housing and private apartments, which have been hit by elevated borrowing costs and cautious buyer sentiment. Social housing, meanwhile, recorded strong growth and accounted for the largest share of starts.

Allan Willen, economics director at Glenigan, said that weaker start figures highlighted “ongoing challenges around viability, financing and funding”.

There were some positive signs, however, with a 16% rise in main contract awards in the residential sector, pointing to continued commitment to larger schemes already in the pipeline.

Willen predicted the next two months would see “little movement of the dial” and that recovery would be seen in 2027.

“However, with the promise of a new Prime Minister going into the second half of 2026 we might see the situation change further, as the new administration looks to establish its own identity,” he said. 

“The big question on everyone’s lips now will be whether they stick to the parameters of the Manifesto and spending commitments made in 2024, or decides to plot their own political course and economic direction.”