UK construction activity showed tentative signs of improvement towards the end of 2025, according to the latest Glenigan Construction Review. While overall market conditions remain challenging, a short-term rise in project starts has provided some limited encouragement for contractors, consultants and digital construction professionals assessing the year ahead.
The December 2025 Glenigan Review, covering the three months to the end of November 2025, analyses all major projects valued above £100 million alongside underlying projects below that threshold. All underlying figures are seasonally adjusted, offering a reliable view of trends across the UK construction pipeline. The findings highlight a sector that is moving forward unevenly, with growth concentrated in specific verticals while others continue to struggle.
Project starts rise, but annual performance remains weak
During the Review period, project starts increased by 14% compared with the previous three months. However, this improvement must be viewed in context. Starts remained 29% lower than the same period in 2024, underlining the depth of the slowdown experienced across much of 2025.
Elsewhere in the construction lifecycle, activity continued to contract. The value of main contract awards fell by 26% year-on-year and declined by 10% compared with the preceding three months. Detailed planning approvals also weakened, down 9% quarter-on-quarter and 26% against last year. Together, these figures indicate that while some projects are moving into construction, the broader pipeline feeding future workloads remains constrained.
For digital construction teams relying on forward visibility of projects, whether for BIM delivery, data-driven planning or supply chain coordination, this imbalance presents ongoing uncertainty.
Economic conditions continue to shape construction demand
Glenigan’s analysis reflects the wider economic pressures affecting UK construction. Fluctuating policy signals throughout 2025, combined with inflationary pressures and subdued investor confidence, have slowed decision-making across both public and private sectors.
Allan Wilen, Glenigan’s Economics Director, notes that recent fiscal clarity may help stabilise expectations. However, he emphasises that a sustained recovery will require a significant increase in work commencing, contracts being awarded and planning approvals being finalised before the end of the current financial year. In the near term, performance remains subdued, with only selective areas showing momentum.
Office construction drives short-term growth
The most notable outlier in the December Review is the office sector. Office project starts rose by 161% year-on-year, while detailed planning approvals increased by 60%. This growth stands in contrast to much of the commercial construction market and has been a key driver behind the overall rise in starts during the Review period.
A major factor behind this performance is the continued expansion of data centres, which are classified within the office vertical. Demand for digital infrastructure, cloud services and artificial intelligence has sustained investment in this area despite broader economic uncertainty.
Regionally, London recorded the largest share of office project starts, accounting for an 80% increase during the Review period. This was supported by significant schemes such as the £800 million Project Vista development in Lambeth. Strong growth was also recorded in the East Midlands, North East and South East.
Planning approvals were particularly pronounced in Wales, where consent values increased more than fortyfold year-on-year. This was largely due to approval being granted for the £5 billion CWL41 data centre development in Bridgend, highlighting how single large projects can significantly influence regional data.
Community and amenity projects show resilience
The community and amenity sector delivered a comparatively robust performance. Project starts and main contract awards increased both year-on-year and quarter-on-quarter, while detailed planning approvals were only 1% lower than 2024 levels.
Growth was especially strong within major projects, with increases recorded across all three contract stages. The prisons sub-sector was a significant contributor, posting a 198% increase in project starts compared with last year. Schemes such as the £713 million HMP Welland Oaks in Leicestershire and the £300 million HMP Grendon Underwood development in Aylesbury underpinned this activity.
From a regional perspective, the East Midlands led project starts within this vertical, with London and the South East also performing strongly. For construction technology providers and digital delivery teams, these projects often involve complex compliance, security and asset management requirements, increasing the importance of structured digital workflows.
Civils activity mixed as infrastructure funding comes into focus
Civil engineering activity presented a mixed picture. Main contract awards fell sharply, down 64% compared with the previous three months, while detailed planning approvals were 50% lower year-on-year. Despite this, civils project starts rose by 118% against the preceding quarter.
Roads, energy and harbour and port developments accounted for much of this activity, with harbour and port projects up 267% year-on-year. The East of England recorded the highest level of civils project starts, while London also posted strong figures. Planning approvals were strongest in the East Midlands, where consents increased by 345%.
The 2025 Autumn Budget is expected to influence future performance. Commitments to regional infrastructure, transport investment and highways maintenance, alongside devolved funding for metro mayors, may help stimulate activity in local road, transport and utilities projects during 2026 and 2027.
Outlook for digital construction professionals
The December 2025 Glenigan Construction Review suggests that UK construction is beginning to stabilise, but recovery remains fragile and uneven. Short-term improvements in project starts are concentrated in specific sectors, particularly offices and community infrastructure, while the broader planning and awards pipeline remains under pressure.
For professionals working in digital construction, BIM management and construction data analytics, these conditions reinforce the need for accurate market intelligence, flexible resource planning and early engagement with emerging projects. As fiscal policy and infrastructure investment begin to take clearer shape, the sector’s ability to convert intentions into delivered projects will determine whether the modest uplift seen at the end of 2025 develops into a sustained recovery.
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