Residential construction starts across the UK fell 46% year on year in the three months to the end of July, according to data from insight and research company Glenigan.
Its latest Construction Index, covering projects with a total value of £100m or less, reveals that during the three-month period, residential construction fell 25% on the previous three months, and 46% compared with the same period last year.
Overall construction fell 11% on the previous three months and dropped 29% year on year.
Non-residential project starts also weakened, declining 4% quarter on quarter and 11% year on year. There was a 34% increase in civil works starting on site against the previous three months, but the figure was 15% lower than the previous year.
However, industrial activity increased 30% quarter on quarter, supported by a £74m storage and distribution project in Leicestershire, but remained 6% lower than a year ago.
Retail construction declined 30% against the preceding three months to stand at 16% below the previous year, while hotel and leisure activity fell 4% quarter on quarter and 26% year on year.
Last month, Glenigan also revealed that residential construction starts plummeted 52% year on year in the three months to the end of June and were 31% down on Q1.
Yuliana Ivanykovych, senior economist at Glenigan, said: “The sector continues to be held back by external factors beyond its control, with a changing of the guard at the top of government being the latest in a string of extraordinary events.
“Key barometers such as residential construction remain depressed with little immediate signs of the dial moving before the end of the quarter.
“With the new prime minister keen on hard hats over academic caps, we might yet see some movement ahead of winter, so I imagine the whole industry will be keenly looking to see what further policy announcements he makes over the next few weeks.
“However, to slightly temper this optimism, there remains a considerable degree of uncertainty across global markets. Tough economic conditions out of Andy Burnham’s control might dent those ambitions usually achievable in normal economic circumstances.”
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