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Housing boost forecast after 12% construction fall in 2024



The housing sector is forecast to recover in 2025 despite declines recorded across the space in 2024.


According Glenigan’s Construction Review for 2024, the value of residential work commencing fell by 12% from 2023.

During 2024, £44.7bn of residential work was begun. Major work - projects valued at £100m or more - dropped to 30% and accounted for only £9.8bn of this.

Main contract awards for residential projects decreased by 8% to £56.4bn. Detailed planning approvals also weakened, falling 5% from 2023 with only £64.1bn of work being greenlit.

Despite this, Glenigan is forecasting a 13% growth for private housing starts in 2025, with an 11% growth anticipated for social housing.

Private housing accounted for just over half (51%) of total project starts, but this was 11% lower than in 2023. Conversely, social sector housing grew to 30% of this with £6.4bn of work in 2024.

Glenigan also published league tables of the most active contractors and clients during this period.

Morgan Sindall was the most active contractor with £2.8bn of work across 145 projects, ahead of Wates with £2.9bn across 83 projects. Vistry came third with £1.6bn of work across 53 projects.

Barratt Redrow was the most active client with £2.6bn of work across 108 projects. Persimmon was the second most active with £2bn across 92 projects. Again, Vistry came third with £1.8bn across 71 projects.

On a regional basis, London remained the most active region with 19% of all project starts despite a 20% fall from 2023. The South East followed with 17% of starts, down 1% from 2023.

Notable growth was recorded in the North West where projects rose 2% to a 10% share, with approvals up 16% during the same period.

Putting housing weakness aside, project starts across all construction sectors saw overall project starts increase by 20% from 2023 to average £10.4bn a month.



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