Construction activity picked up pace in the three months to April with housebuilding leading the way, according to Glenigan’s latest Construction Index.

In the May 2025 edition of its Construction Index, Glenigan said residential starts were up 24% quarter-on-quarter and up 22% year-on-year, a sign of renewed confidence in the sector.

Private housing alone surged 29% year-on-year, while social housing experienced a 3% upturn annually after a strong spring showing.

The index focuses on the three months to the end of April 2025, covering all underlying projects, with a total value of £100m or less (unless otherwise indicated), with all figures seasonally adjusted.

Construction starts cross the whole sector saw a lift in the three months to April with the value of underlying work starting on-site up 7% on the previous quarter and 3% ahead of last year’s levels.

Performance in non-residential areas was mixed. While some sectors, including community and amenity, health and offices, saw strong gains, others, including education, hotel and leisure and retail, posted sharp declines.

Meanwhile, civils suffered a significant setback. Starts fell 22% quarterly and annually, reflecting a slowdown across infrastructure and utilities projects.

Allan Wilen, Glenigan’s economics director, said: “Builders were reporting falling workloads at the end of last year, reflecting a period of real uncertainty across the construction sector. However, the latest figures, particularly in residential, suggest that fortunes may be starting to turn.

 “This uptick in activity is encouraging, but sustained recovery will depend on confidence filtering through the supply chain. The government’s much-anticipated spending review in June will be a crucial moment.

“If it brings clarity on major infrastructure investment, it could unlock momentum not just for big-ticket schemes, but the smaller, local projects captured in this data too; the kind councils are waiting to greenlight.”

Regionally the South-west led regional performance, with construction starts rising 15% compared to the previous three months and climbing 29% on the same period last year.

Similarly, the South-east saw strong growth, increasing 32% on the preceding quarter and rising 8% year-on-year.

London experienced a 22% increase in activity compared to the previous quarter, though it was still down 10% on the previous year.

The North-west also saw an uplift, rising 25% against the preceding three months, but remained 20% behind 2024 figures.

The North-east had a mixed performance, declining 4% against the previous quarter but standing 11% up compared to the previous year

The West Midlands had a more challenging quarter, with starts rising 16% against the preceding three months, but declining 6% on the same period in 2024.