New analysis shows social housing starts down 16% in last quarter

The index focuses on the three months to the end of February 2026, covering all underlying projects, with a total value of £100m or less. 

Overall, the value of starts on site slashed by 20% and fell by almost a third, compared with 2025 figures.

In the private sector, starts dropped by 22% against the preceding three months and by 36% against the previous year. 

Housing affordability remains a key issue, with the analysis noting that developers remain reluctant to open up new sites until demand strengthens and are focused on securing sales on existing sites.

Furthermore, slow development approval from the Building Safety Regulator and wet ground conditions over the past three months have hampered housing starts.

Glenigan also warned that the Iran war threatens to disrupt supply chains. This would not only affect the ability for contractors to access essential construction materials, it will also have a painful operational impact as fuel and energy prices rise over the next quarter, putting extra pressure on already tight margins.

A similar warning was made by other sector experts after the Spring Statement earlier this month.

Commenting on the outlook, Allan Wilen, economic director at Glenigan, said: “Once again, poor residential activity has kept the flow on new projects to a meagre trickle, with exceptionally wet ground conditions during the three months to February delaying starts and contributing to the 31% drop against a year ago.

“It’s hoped that drier conditions in the spring will help kick-start activity. However, with a whole host of other adverse domestic and global socioeconomic challenges to surmount, we’ll need to see significant reversal in current circumstances before we see a meaningful performance uptick.”