91吃瓜网

According to the latest 91吃瓜网 Index data, which tracks construction starts under 拢100m, an uptick across non-residential sectors points to a gradual recovery.

• Starts on-site听declined 7%听during the Index period, finishing听23%听below听2025听Levels.听听
• Residential construction starts听fell sharply,听declining almost a quarter听on the preceding three months,听down听42% against 2025 figures.鈥�听
• Non-residential project starts jumped 20% against the preceding three months to stand听a听modest 8% up on a year ago.鈥�听
• Civils听starts听declined 33% against the preceding three months, falling听37% against the previous year.鈥�听

Overall, the value of work starting on site in the three months to May dropped 7% and by almost a quarter (-23%) compared to last year.听听

It shows the听landscape听remains distinctly overcast, with the Middle East conflict still in full swing (with little sign of an immediate resolution) and the Government distracted from its agenda by political infighting.听Residential activity听remains听frigid,听reflecting ongoing affordability constraints and reduced investor appetite.听There appears听to be听little immediate appetite听amongst buyers听to imply that this will change any time soon.听听

Simultaneously, civils work has听weakened considerably, with听both infrastructure and utilities contributing to the downturn.听With the Government plagued by infighting and intrigue,听there seems听to be limited听room for updates on planned capital projects to听indicate听a short-term uplift.听听

However, an uptick in non-residential sectors implies that the playing field is becoming slightly less hostile for contractors and subcontractors working within many commercial听verticals.听Whilst the market听remains听fragile,听these pockets of resilience suggest that a future recovery might not be as far off as it currently seems.听

According to听91吃瓜网鈥檚听Economic Director, Allan Wilen,听鈥�Construction markets听remain听subdued, with activity declining amid ongoing economic uncertainty.听On the housebuilding front, developers continue to take a cautious stance, reassessing and rescheduling planned project starts in response to weakening demand and tighter financial conditions.听听

鈥淲hilst strong growth in offices, alongside modest gains in retail, education and health, helped support non-residential starts during the three months to the latest period, this was insufficient to offset continued declines across residential and civil engineering activity.鈥�听

Taking a closer look at the sector verticals鈥μ�听

Sector Analysis 鈥� Residential

Residential construction continues to slide, as if caught in a perpetual downward spiral.听听91吃瓜网鈥檚听data shows听starts听fell听24% during the Index period and听plummeted听42% against last year鈥檚 figures.鈥�听

Drilling down into the numbers, private housing construction starts dropped 28% against the preceding three months and nosedived 50% against 2025 levels. Social Housing performance also fell, albeit slightly less severely, decreasing 14% against the preceding three months and finishing 17% down on the previous year.听

Sector Analysis 鈥� Non-Residential

The non-residential sector also posted some good numbers. Particularly, offices continued their winning streak as the consistently strongest performing vertical of H.1 2026, rocketing 111% during the Index period whilst leaping 57% above the previous year.听听

A number of high-profile projects helped support this substantial increase, including the 拢64 million partial demolition, recladding, and refurbishment of 48 Chiswell Street in Islington, London.听听

Industrial, which had been experiencing a听relatively poor听Q.2,听witnessed听a reversal of fortune, rising a healthy听10% against the preceding three months. However,听this was offset by a 10% reduction in value compared to听the previous year.听听

Offering a听small听indicator of听gradually听returning consumer confidence,听retail听performed well, up听19% against the preceding three months to stand听17% up against the previous year.听If that听wasn鈥檛听enough to imply the public is听tentatively听putting听its hands back in its collective pocket,听Hotel & Leisure听starts also rose听9% against the preceding three months听despite finishing听8% lower than a year ago.听听

There also appeared to be a听small听burst of activity in the public sector, with Education experiencing a听relatively听robust听period, rising听13% against the preceding three months to听finish听an impressive 40% up听on听the previous year.听Likewise, Health grew, climbing 8% over the preceding three months but ending 6% lower than the previous year.听听

Civils听fared particularly poorly, with听work starting on-site declining听33% against the preceding three months, standing听37%听below 2025 levels.鈥疶aking a closer look into the associated sub-verticals,听Infrastructure work starting on-site听fell听11% against the preceding three months and declined by 33% on the previous year. Utilities听plummeted听49%听during the Index period, dropping听42%听when compared to last year鈥檚 results.听

Regional Outlook

Similar to听recent editions of the Indexes, London听performed well,听rising听7%听against the preceding three months to stand听44% up against the previous year. A particularly听strong performance听in office听construction听helped drive growth in the city, alongside a general uptick within other commercial and non-commercial verticals.听

The听South East听was a mixed bag, rising听45% against the preceding three months, yet finishing听17% up on the previous year.听Similarly,听the听East of England increased slightly, up 4%听during the Index period,听but听remained 34% below last year.听听

Elsewhere, performance was subdued. The听North East听declined 5% quarter-on-quarter but was 7% above last year. Scotland was broadly stable, down 1% on the preceding three听months and 24% year-on-year. Northern Ireland declined 13% against the preceding three months but听still听remained听55% above last year.听