Glenigan data reveals project starts under £100m fell by a fifth in the three months to August as housing market headwinds persist.
Construction industry output experienced a severe downturn in the three months to 31 August, with project starts dropping 20% compared to the same period last year. According to the latest Construction Index from market intelligence firm Glenigan, which monitors underlying building projects valued at under £100 million, persistent headwinds in the residential sector continue to drag down overall build volumes across the UK.
The sharp contraction underscores an ongoing slump in housing activity, driven by broader economic uncertainty, elevated borrowing costs, and cautious site-release strategies from major developers. Because underlying projects under £100m represent the primary workload for small-to-medium contractors and specialist sub-contractors, a 20% drop in new site starts represents a substantial tightening of work available across regional markets.
With underlying construction activity slowing by a fifth, major trade merchants including Travis Perkins, Jewson, Wickes, and B&Q face reduced volume demand for primary structural materials like timber, aggregates, and bricks. For sole traders and sub-contractors, this softening market creates potential leverage when sourcing materials. Trades should shop around and negotiate merchant trade counter discounts, as suppliers look to maintain customer loyalty amid lower overall sales volumes. However, caution is advised on capital equipment purchases. Unless existing power tools require essential replacement, tradespeople may want to hold off on high-ticket, multi-tool kit upgrades until project pipelines stabilize later in the year.
Until macroeconomic conditions ease and housebuilding starts rebound, trade contractors must focus on keen pricing, competitive material sourcing, and protecting cash flow through the leaner period ahead.
Reported by Construction News — original article
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