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UK construction faces mixed outlook as contract awards rise but project starts fall

Glenigan's October Construction Review shows UK construction remained under pressure in the three months to September 2026, with detailed planning approvals down 16% quarter-on-quarter and 28% year-on-year, and project starts down 26% quarter-on-quarter. Main contract awards were the exception, rising 25% year-on-year even though they fell 19% quarter-on-quarter. Social housing starts jumped 165% to £5bn, while private housing starts fell 34%, office and industrial starts both dropped 55%, and civil engineering approvals plunged 70%. Glenigan linked the weakness to subdued private investment, squeezed household finances, public planning constraints and uncertainty over government spending. Economics director Allan Wilen said rising contract awards signal returning confidence but not a broad recovery, which must show up in smaller schemes under £100m, and that the upcoming Budget will be closely watched.

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