Glenigan records yet another dismal month for the sector as international conflict escalates Today, Glenigan | A Hubexo Company (Glenigan), one of the construction industry’s leading insight and intelligence experts, releases the March 2026 edition of its Construction Review. The Review focuses on the three months to the end of February 2026, covering all major (>£100m) and underlying (<£100m) projects, with all underlying figures seasonally adjusted. It’s a report providing a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the past year. The March edition of the Glenigan Construction Review offers no respite to a sector caught in a downward spiral of poor market conditions, with decline recorded across the board. Projects starting on-site were down by a staggering 39% compared to the preceding three months and by 29% against 2025 figures. Main contract awards told a similarly sorry tale, plummeting 36% year-on-year to finish 17% lower than the previous three months. Slightly less severe, but equally disappointing, detailed planning approvals dropped by 15% compared to the preceding three months to stand 16% below last year’s numbers. International turmoil dashes recovery hopes The recent explosion of conflict in the Middle East and the ongoing socioeconomic turbulence it’s caused are only adding to UK construction’s many frustrations. With little sign of things drawing to a conclusion any time soon, it only adds another burden on top of an industry being slowly smothered by persistent affordability pressure, a subdued planning environment and low business confidence. Unsurprisingly, the investment landscape, which was beginning to thaw, is, once again, becoming increasingly chilly. Whilst Government spending commitments remain intact, the uncertainty presented by the US/Israel-Iran War could call even the firmest funding agreements into question. With world events playing out in real-time, contractors and subcontractors can only look on and develop contingency plans to remain resilient in the face of further downturn. As Glenigan’s Economics Director, Allan Wilen says, “We’re in a deeply worrying position where market volatility means prices are erratically fluctuating on a daily basis, dictated by the direction of international affairs. As our results show, the decline in construction activity has deepened and hopes for a recovery in the second half of the year now hang in the balance. He adds, “It doesn’t bode well for currently weak verticals, especially the private residential sector which will likely continue to slide. Equally concerning, those areas where we’ve seen relative performance gains are seeing this growth put at risk. This all makes existing pipelines extremely fragile with no guarantee that signed and sealed projects will be delivered to agree dates. “However, whilst the entire supply chain will be nervously observing the situation, this is definitely not the time for firms to be sitting on their hands. Crucially, they must assess the vulnerability of their order books to delay, and higher construction costs, to scan the horizon for new projects to offset possible workload gaps.” Taking a closer look at the highlights and lowlights… Making plans for future growth Civil engineering experienced a challenging three months to February, with project starts plummeting 86% compared with the preceding three months, while main contract awards declined 18% over the same period. Whilst all three metrics fell on a year-on-year basis, detailed planning approvals surged 92% compared with the previous quarter providing a strong signal of future recovery. This indicates the outlook, at least in this vertical, is more encouraging, with infrastructure workloads expected to strengthen gradually, supported by increased road and rail investment from 2026/27 onwards. Energy accounted for the largest share of starts at 35%, though activity fell 40% year-on-year. Roads represented 14% of starts, declining 54%, while airports recorded the only major uplift, rising 703% year-on-year. Regionally, the North East was the most active for project starts at 17% of total activity, up 57% year-on-year. In planning approvals, the North West led with 27% of total approvals, increasing 177% year-on-year, while Scotland held 24% of approvals with a 30% annual rise. Learning to get better The education sector experienced a mixed period in the three months to February, with project starts rising 23% year-on-year whilst main contract awards declined 21% and detailed planning approvals fell 14% compared with the previous year. Despite this uneven performance, the future appears refreshingly positive, with ongoing policy commitments to address the ageing school estate supporting future activity through the school rebuilding programme. Schools accounted for the largest share of starts at 81%, rising 51% year-on-year, whilst universities represented 11% of starts, declining 24% on the previous year. Colleges fell 39% year-on-year. London was the most active region for project starts at 22% of total activity, rising 217% year-on-year, followed by Scotland at 15% with 203% growth. In planning approvals, Scotland held the largest share at 34%, increasing 153% year-on-year, whilst the North East and Yorkshire & the Humber delivered significant uplifts, rising 156% and 225% respectively. Out of office The office sector delivered strong project starts in the three months to February, rising 54% year-on-year. However, the pipeline showed signs of weakening, with main contract awards declining 14% and detailed planning approvals falling 28% compared with the previous year, suggesting the robust performance experienced in recent months may be tailing off. All value bands experienced growth in project starts. Projects over £100 million rose 62%, schemes between £50 million and £100 million grew 27%, whilst projects between £20 million and £50 million rose 40%. London dominated office project starts, accounting for 63% of activity after a 70% rise, supported by major schemes including the Row One development at Red Lion Court in Southwark. The South West also recorded a sharp uplift, rising sixteen times higher than a year ago, driven by the 90-acre technology campus for US healthcare software company Epic, between Long Ashton and Bristol. In planning approvals, London led despite a 43% annual decline, whilst the South East performed more strongly, rising 112% year-on-year, and the North East saw exceptional growth, climbing tenfold. Building, Design

RED Construction Group, the specialist main contractor, is forecasting positive sustainable growth, having surpassed £100m of secured work and celebrating project completions totalling more than £65m within its South West division. The team recently completed the £15m Millstream development, the final piece of the redevelopment of the Chocolate Quarter Retirement Village, formerly Cadbury’s Chocolate Factory. The works involved navigating an existing basement structure to construct the five-storey block that consists of 44 extra-care apartments, a communal lounge, a basement plant room, cycle store, and extensive associated external works. Following the successful delivery of the Chocolate Quarter Retirement Village, St Monica Trust has now appointed the South West division as its construction partner on The Hub, a vibrant new social facility to be located at the heart of Cote Lane Retirement Village in Bristol. The RED team will create an extension to Grade II listed building, Oatley House, linked via clear structural glass, creating a modern, comfortable communal space with seating, sofas, and a serving counter. The internal refurbishment will involve the reconfiguration of bathroom facilities, an adjustment of office layouts, and a new reception area. By transforming the previously underused space into a vibrant, welcoming café and social hub, both residents and visitors will benefit, while also preserving the 1920s character of Oatley House. These project milestones with St Monica Trust coincide with the division’s completion of several cladding remediation schemes in the South West of which include works on The Crescent, Balmoral & Waverley, and The Panoramic. These projects total over £15m and deliver fire safety works to over 400 apartments within the city of Bristol. James Devey, Divisional Director at RED Construction South West, commented: “We’ve been busy delivering projects that truly make a difference.  The completion of several cladding remediation projects and final piece of the Chocolate Quarter are perfect examples.  The new social hub at St Monica Trust’s Cote Lane Retirement Village represents the success of our approach to collaboration, delivery, and willingness to take on projects that enhance the community.” David Williams, Chief Executive at St Monica Trust, added: “RED Construction South West’s work on The Chocolate Quarter has been an all-round success, so when it came to selecting a contractor for The Hub, the team were the obvious choice. As we look towards the refurbishment of the equally historic Oatley House, we can trust that the task of delivering The Hub has been placed into the best hands.” The news follows RED South West recently breaking ground on StudioHIVE’s Weston Health Hub, located in Weston-Super-Mare. The first phase of the project will involve the construction of a new health centre and GP surgery, providing facilities serving up to 12,500 people. Building, Design & Construction Magazine | The Choice of Industry Professionals

The Department for Business and Trade (DBT) quickly intervened to save British Steel’s Scunthorpe blast furnaces from closure, and has spent £377 million so far to keep the site operational with no budget set at the 2025 Spending Review, and no end date for the intervention a new report from the National Audit Office (NAO) has found.1  Jingye, the owner of British Steel, and DBT had been in talks around transitioning to electric arc furnaces between 2022 and 2025, but had not reached an agreement.2 In March 2025, Jingye announced that it was losing £700,000 per day due to challenging market conditions, tariffs, and high environmental costs, and it was considering the closure of the blast furnaces. This would have resulted in a large number of job losses at Scunthorpe and affected key customers in the supply chain, such as Network Rail.  In April 2025, DBT intervened after assessing that timescales were critical due to stocks of raw materials running low, and there was a risk of the blast furnaces being switched off. 3 Emergency legislation – the Steel Industry (Special Measures) Act 2025 – was passed to allow DBT to issue formal instructions to British Steel to continue operating its blast furnaces. DBT acted quickly to mobilise a team on site, secure raw materials and put governance arrangements in place.   DBT has so far spent £377 million to keep British Steel operating, including spending £15 million on advisers between 12 April 2025 and 31 January 2026, and £359 million to British Steel for operating activities such as paying for raw materials, payroll, and other operating costs. 4 Spending is expected to reach £615 million by June 2026. If spending continues at current rates, it could exceed £1.5 billion in 2028 depending on policy choices that may be taken in the future.  DBT has no repayment schedule in place, and it is not apparent that British Steel will be able to repay the loan. 5 DBT was not allocated funding for the intervention at the Spending Review and will have to make savings elsewhere to fund part of the intervention from its existing budgets for 2025-26.  DBT considers that the benefits of the intervention have been to ensure the continued and safe operation of the two blast furnaces at the Scunthorpe site, giving the department time to undertake a national security and economic assessment of the steel sector, and to retain primary steelmaking capability in the UK.   DBT has been in contact with the owner, with a view to finding a way through that meets the government’s aims of preserving steelmaking in Scunthorpe and enabling future discussions about investment. Longer-term, a transition plan for converting from blast to electric arc furnaces, and a wider transformation plan may be required to support the future viability of the business.  DBT has established the Steel Programme which covers on-site management at Scunthorpe and work on future steel policy. DBT plans to publish a steel strategy which is expected to outline measures to address sector-wide challenges and attract investment. 6 The government has also previously announced a £2.5 billion commitment to the steel industry. 7  Gareth Davies, head of the NAO, said:   “DBT was able to act quickly to save British Steel’s Scunthorpe furnaces from closure, avoiding heavy job losses and serious impacts on major UK infrastructure and construction projects. However, the trade-off is the significant cost of maintaining operations, and uncertainty over how long this will continue.” “DBT should learn from this experience to be better prepared for future interventions.” Building, Design & Construction Magazine | The Choice of Industry Professionals

February showed a clear rebound on construction activity, with strength concentrated in Residential, Commercial, Education and major infrastructure schemes according to construction data analysts Barbour ABI. Contract Awards were up 16% month on month after a poor January with Residential rising significantly. Commenting on the trend Barbour ABI head of business and client analytics Ed Griffiths said: “The market is increasingly driven by large‑scale regeneration, data‑centre demand, and energy‑transition projects such as HVDC cabling, all of which continue to attract investment despite wider economic uncertainty. Growth in residential awards reflects pent‑up demand for student accommodation and urban living, while commercial recovery is being supported by logistics‑led developments and digital infrastructure.” Residential contract award value increased 32% on January to £2.1bn after an easing. The sector Q1 average now sits just above the average for the same period last year. The largest project in the sector was the replacement 2,330 bed student accommodation, Cambridge Halls in Manchester. The North West, bolstered by large Residential projects and Birkenhead regeneration, saw a 158% increase to £1.16bn after a disappointing start to the year. Meanwhile approvals ticked down 9% to £10.1bn but momentum remains strong with several large residential and mixed‑use schemes achieving consent. The continuing throughput of schemes above £100m demonstrates planning authorities’ commitment to progressing strategic housing and urban regeneration pipelines. Clouds on the horizon However, looking ahead Griffiths sounded a note of caution. “In many ways it’s good news this month but across the sector, contractors still face tight margins, supply‑chain volatility and prolonged planning timelines, which are slowing momentum in some regions. Meanwhile the OBR downgraded GDP growth forecasts for the recent spring statement from 1.4% to 1.1%. Although they were more optimistic about 2027 this did not take into account the potential impact of the US-Israel strike on Iran. “This kind of event reminds us that much of the current uncertainty in the UK construction market lies outside domestic policy control, which adds a further restraint on investment. A spike in oil and gas prices as a result of the current conflict would greatly exacerbate the viability issues that plague the market and halt any progress on delivery.” Building, Design & Construction Magazine | The Choice of Industry Professionals

Funding to enable construction to begin on 400 new council homes across Hackney has been approved by the borough’s cabinet, marking a significant step forward in the council’s housebuilding programme. The approved funding will allow work to start on 14 council-owned sites, including underused garages and derelict office buildings. Planned developments include nine new terraced houses on the Nye Bevan Estate, energy-efficient homes at Morris Blitz Court, and a new block of 18 homes replacing garages at Blackwell Close in Clapton. At least 300 of the new homes will be delivered at council social rent. Funding for the programme will be provided through a combination of the Mayor of London’s Affordable Homes Fund and direct council investment. Mayor of Hackney, Caroline Woodley, said: “This is another milestone in our mission to deliver 1,000 new council homes for social rent across Hackney, which will see spades in the ground on 400 new homes. “We’re building some of the best new council homes in the country. They’re spacious, energy efficient, designed in partnership with communities and, most importantly of all, local people always get first dibs. “I’m proud of our record, but we know there’s more to do, which is why we want to expand our housing programmes to build and buy back thousands more for the people in desperate need of somewhere to call home.” The council is currently delivering 972 new council homes across Hackney, despite rising construction costs and the impact of new building regulations. Delivering a single council home in London now costs more than £500,000, presenting ongoing financial challenges for local authorities. All new homes delivered through the programme are prioritised for residents most in need, with local people given first priority. Developments are designed in partnership with communities to ensure they reflect local character and needs, and the council’s housing programme has received multiple industry awards, including the RIBA Neave Brown Award for the best social housing in the UK. Building, Design & Construction Magazine | The Choice of Industry Professionals

Happy New Year! UK construction performance finishes 2025 on a high 2025 concluded with a significant increase in project starts during the Index period This week, Glenigan | A Hubexo Product, one of the construction industry’s leading insight experts, releases the January 2026 edition of its Construction Index. The Index reviews the three months to the end of December 2025, focusing on underlying projects with a total value of £100 million or less (unless otherwise stated). All figures are seasonally adjusted. It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the last 12 months. The January Construction Index reveals that overall construction performance is starting to improve following a sluggish end to Q.2 2025, and a distinctly depressed Q.3 2025. In fact, projects starting on site rose by 7% in the three months to December, indicating that the sector is starting 2026 on a surer footing than that of the preceding quarter. Despite start activity remaining 7% lower than 2024 figures, the outlook for the coming year is far from gloomy and, with significant Government funding in areas including housebuilding, amenities, critical infrastructure, and capital projects there’s hope that this cash injection into the public realm will act as a catalyst to thaw currently frosty private investors both home and abroad. According to the Index, this current and potential growth is being seen across a variety of different verticals and, whilst residential categories posted losses, non-residential counterparts (including civils) posted strong results during Q.4 and against the preceding year. Commenting on the results, Glenigan’s Economics Director, Allan Wilen, says, “Contractors and subcontractors across the UK will be breathing a sigh of relief that, contrary to expectation and speculation, the sector finished up 2025 on a positive note, buoyed by significant Q.4 growth across non-residential verticals, particularly office and industrial where work has skyrocketed providing much needed momentum.” He continues, “Looking at the year ahead, whilst it won’t be a cake walk by any means, hopefully this non-residential activity boost will provide the basis for a further strengthening, reflecting the 2026 return-to-growth predictions we made in our recent Construction Forecast. However, this only addresses half the story. In the short term, the toughest nut to crack will be the persistent private residential market stagnation. Languishing in the doldrums, it desperately awaits a return of house-purchaser confidence and faster BSR clearance of high-rise projects; something the Government will no doubt chew over intensely over the first half of the year to find a way of easing the deadlock.” Taking a closer look at the results… Sector Analysis – Residential The Residential sector was a mixed bag, registering a modest 2% decline in the preceding three months, down by a fifth (-20%) against 2024 figures. Drilling deeper, private sector activity maintained a downward trajectory, posting 15% drops during Q.4, plummeting 29% compared to the previous year. Social housing, however, fared somewhat better, with 28% rises during the Index period to finish 16% up on last year. Sector Analysis – Non-Residential It was a different story in the non-residential sector, which experienced a robust period of growth, with most verticals scoring an increase during Q.4 Once again, the sun continued to shine on office construction, which rose by 11% against the preceding three months and 53% above 2024 levels. These impressive results can be largely attributed to the commencement of some sizeable projects, including the £70 million Dirac Building on the new St John’s Innovation Park development in Cambridge, and various other schemes. Not to be outdone, Industrial project starts were similarly on the up, soaring to 41% during the Index period and by 57% against the previous year. The commencement of various schemes up and down the UK helped to support sector growth. Once again, community and amenity projects saw an increase, with project starts on site up by 37% on 2024 figures and by 29% compared to the preceding three months. Perhaps boosted by good vibrations from the UK Government, civils work starting on-site increased 17% during Q.4 and by 15% against the previous year. Infrastructure project starts jumped 8% and utilities 28% during the index period to finish 9% and 23% up on last year, respectively. Elsewhere, performance was inconsistent or in decline. Whilst retail increased by 9% against the preceding three months, it stood 15% lower than the previous year’s figures. Likewise, education projects witnessed a 13% spike during the index period, but finished 8% down compared to 2024. Health and Hotel & Leisure’s results were disappointing. The former saw performance slashed by a quarter (-25%) against the previous year, dipping 7% during Q.4. Similarly, the latter dropped 8% during the preceding three months, finishing 28% lower than 2024 figures. Regional Outlook The Capital was the standout performer, rising to 35% against the preceding three months to stand 33% up against the previous year. Keeping up the pace, the North East also performed well, rising 10% against the preceding three months to stand 34% up against the previous year. It was a similar story in Yorkshire & the Humber, where project starts rose by 16% against the preceding three months to stand 1% up on the previous year. Elsewhere, performance was either patchy or dismal. The South West experienced a mixed performance, rising to 20% against the preceding three months, yet finishing 6% down against the previous year. The West Midlands experienced an especially poor period, declining by 19% against the preceding three months and declining to 12% against the previous year. The South East also struggled, declining 7% against the preceding three months to stand 14% down against the previous year. Find out more about Glenigan here: www.glenigan.com Building, Design & Construction Magazine | The Choice of Industry Professionals