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Glenigan Review: Pipeline Perks Up As Project Starts Plateau
Glenigan | A Hubexo Product (Glenigan), one of the construction industry’s leading insight and intelligence experts, has released the August 2026 edition of its Construction Review.
The August Review focuses on the three months to the end of July 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.
Glenigan’s August Construction Review reveals a few rays of sunshine poking through an otherwise overcast industry landscape. It will provide some much-needed optimism to a sector that has been battling an extraordinary set of headwinds since the start of the year.
A massive jump in Main Contract Awards, which rose 17% against the preceding three months, and soared a staggering 169% compared to 2025, is perhaps the strongest indicator that market confidence is returning. This can, in part be attributed to an activity spike in major projects, particularly in the healthcare, where various schemes in the New Hospital Programme reached the contract awarded stage. This includes the Leighton Hospital scheme, the Frimley Park Hospital as well as various others.
Similarly, if somewhat more modestly, Detailed Planning Approvals picked up by 10% during the Review period and, despite dipping 3% year-on-year, this modest rise compared to the previous month indicates the pipeline is gradually refilling. It certainly offers a tentative sign that recovery, if not immediate, is on the horizon, echoing Glenigan’s own Forecast prediction of an 11% sector-wide performance increase in 2027.
The refreshingly positive stats in the August Review can be largely credited to substantial gains in a number of commercial verticals, particularly Hotel & Leisure, as well as an acceleration of activity in both public sector and civils.
However, before contractors and subcontractors get dazzled by these strong figures, it appears that intent is yet to properly translate into activity. Project starts are still stubbornly stagnant as the appetite to commit shovel to soil remains subdued, against a backdrop of lukewarm investor confidence and renewed uncertainty around public spending. This resulted in a 7% drop against the previous three months. Yet, whilst activity remains low, there are signals that a long period of decline is starting to bottom out, with levels breaking even (0%) compared to 2025.
Looking at the results, Allan Wilen, Glenigan’s Economics Director, says, “There are plenty of reasons for readers to be cheerful when going through the August Review, especially following such a tumultuous and unpredictable six-months. Whilst a degree of uncertainty persists, labour and material costs are stabilising. Industry prospects appear to be turning a corner, but, before we get too excited, these green shoots are fragile and, as we’ve seen before, could wither away on the merest market change.”
He continues, “the construction supply chain should stay mindful that the recovery will be shaped by wider economic conditions, investor confidence and public sector spending priorities. Remember, in spite of the excellent Main Contract Awards and Planning Approval figures, conversions into actual starts remains the litmus test of the sector’s performance over the back end of the year.”
Taking a closer look at vertical highlights…
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Residential: Housebuilding slips as social housing steadies the ship
Residential had a bruising three months, with project starts sliding 39% year-on-year even as main contract awards jumped 60% and detailed planning approvals eased back 22%. Private Housing bore the brunt, tumbling 52% to £2,434m despite holding a 40% share of the sector, while Private Apartments dipped 23% to £1,630m and Social Sector Housing softened 27% to £821m. The awards uplift hints at work waiting in the wings, though the sharp fall in starts underlines the ongoing pressure on near-term workloads.
Regionally, London held top spot with starts worth £1,250m, even after a 16% dip. The North West proved the steadiest performer, barely moving at £962m with just a 1% decline. Elsewhere the picture soured, project starts in the South West, West Midlands and Wales all declined sharply against the previous year. However, Wales offered a rare bright spot, posting strong growth in planning approvals that points to a healthier pipeline further down the line.
Private non-residential: Offices and hotels shine while industrial cools
Private non-residential was a real mixed bag. Offices held firm, with starts dipping just 3% but approvals climbing 54% on the back of a buoyant mid-market: the £20-50m band rose 18% to £627m and the £50-100m band leapt 80% to £361m.
Hotel & Leisure told a similar tale, with main contract awards rocketing 787% and approvals up 56%, even though starts eased at 17%. Industrial had a tougher time, with starts down 43%, though a 147% surge in approvals signals a pipeline gathering pace. Retail stayed muted, with starts off 16% but awards up 72%.
Regionally, London ruled office activity, with value soaring 30% to £1,531m. The East of England led Industrial starts, up 218% to £465m, while Yorkshire & the Humber topped Hotel & Leisure at £178m and Scotland jumped 177% to £123m. The North West led Retail, climbing 223% to £50m, with Yorkshire & the Humber and Northern Ireland also enjoying strong runs against the previous year.
Public sector: Health leads the charge as schools await their moment
The public sector offers plenty of cheer. Health stole the show, with starts up 32%, awards rocketing 634% and approvals climbing 65%, buoyed by the New Hospital Programme and NHS capital commitments. Hospitals made up more than half of starts, rising 75%, while Nursing Homes & Hospices climbed 44%.
Community & Amenity also impressed on paper, with awards up 182% and approvals up 95% despite starts falling 34%, led by blue light projects and a 466% surge in military work. Education was the odd one out, with starts down 44%, though a 204% jump in awards and the Schools Rebuilding Programme point to brighter days ahead. Regionally, the South East led Health starts at £321m, a 27% share, while Yorkshire & the Humber climbed 195% to £285m. Scotland topped Education starts at £154m, with Wales leaping 579% to £132m. London led Community & Amenity at £105m despite a 53% dip, as the West Midlands pushed on to £88m.
Civils & infrastructure: Starts surge as approvals take a breather
Civil Engineering roared back during the three months, with project starts surging 171% year-on-year and main contract awards climbing 85%. Detailed planning approvals told a quieter story, sliding 37% against 2025 levels, though this looks more like a pause than a retreat. Roads led the way, accounting for around 30% of activity, with harbour and ports work also putting in a strong showing. The momentum reflects growing investment in transport, energy, utilities and net-zero infrastructure, a theme set to shape the sector well into 2026 and 2027.
Regionally, the South East dominated starts with an eye-catching £6,009m, up 844% year-on-year and worth roughly two-thirds of the sector’s total. The West Midlands also flexed its muscles, climbing 732% to £1,241m. On the approvals front, the North East led the field at £3,069m following a 688% rise, while the East Midlands rose 159% to £1,141m, keeping the pipeline ticking over for the quarters ahead.
