The UK construction industry continues its gradual rebound, with Glenigan’s August 2025 Construction Index revealing steady growth despite a slowdown from July’s more dramatic performance. The latest data indicates a resilient sector, powered by surging residential activity and promising regional recoveries — albeit with some inconsistencies in non-residential development.
What Is the Glenigan Construction Index?
Glenigan | Powered by Hubexo — a leading insight provider for the UK construction sector — releases monthly data via its Construction Index, offering:
- A detailed look at projects worth up to £100m (unless stated otherwise)
- Seasonally adjusted, rolling three-month data
- Year-on-year performance comparisons across sectors and regions
This authoritative report equips built environment professionals with clear insights into where construction is heading in the UK.
Construction sector maintains upward momentum
Although slower than July, the August 2025 Construction Index still reflects positive momentum:
- Start-on-site performance rose 9% compared to the previous quarter and year-on-year
- Residential construction led the charge, continuing its month-by-month gains
- Private investment appears to be returning, particularly in commercial offices
“The industry will find much to be pleased about in the August Index,” says Allan Wilen, Economic Director at Glenigan. “The residential sector is thriving, and a surge in office developments suggests market confidence is growing.”
Residential construction growth continues to lead the recovery
Residential construction was once again the strongest performer, thanks largely to private sector developments:
- Private housing starts jumped 24% compared to the previous three months
- Starts stood 40% higher than the same period in 2024
In contrast, social housing performance dipped:
- Down 33% quarter-on-quarter
- Down 24% year-on-year
Non-residential construction: a mixed picture
- The commercial office sector saw a major uplift:
- Office starts rose 39% compared to the previous quarter
- Up 64% year-on-year
- Key project: The Republic office development, part of Manchester’s Mayfield scheme (£98.8m)
- Healthcare saw a resurgence
- Health sector projects up 11% quarter-on-quarter
- Up 20% compared to 2024
- Hotel & Leisure posted modest gains
- Starts up 2% on the previous quarter
- 9% higher than last year
- Education is still lagging
- Grew 6% quarter-on-quarter
- Still below 2024 levels
- Civil engineering and infrastructure show promise
- Civil engineering starts rose 15% from the previous quarter
- Down 21% year-on-year
- Infrastructure boosted the sector with a 27% increase, while utilities rose just 1%
These figures indicate steady but unspectacular progress, with infrastructure spending expected to ramp up in late Q3 and into Q4 2025.
Regional construction trends
Top-Performing Regions
- West Midlands
- +40% on the previous quarter
- +79% year-on-year
- South East
- +22% vs previous quarter
- +9% year-on-year
- Led in terms of total project value
- North West
- +27% quarter-on-quarter
- +18% year-on-year
- East of England
- +16% quarter-on-quarter
- +47% year-on-year
- Yorkshire
- +10% vs previous quarter
- +12% year-on-year
Regions with mixed or weak Performance
- London
- +13% on previous quarter
- Down 10% year-on-year
- Northern Ireland and other regions
- Underperformed both quarter-on-quarter and year-on-year
Industry outlook: on track for 3% growth in 2025
Despite some short-term fluctuations, Glenigan’s Spring/Summer Forecast remains intact:
- UK construction is still on course for 3% growth by year-end
- Growth is being driven by:
- Resurgent private residential starts
- Increasing commercial office activity
- Promising signs in civil engineering and infrastructure
“The August figures back up our forecast,” Wilen adds. “Recovery is stepping up a gear, even if the pace remains steady rather than spectacular.
“Looking ahead, the UK construction sector appears resilient, supported by strategic private investment and infrastructure funding. While the pace may have slowed, the recovery is no longer in doubt.”
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