UK housebuilding starts reach highest quarterly level since 2023
UK housebuilding starts increased to their highest quarterly level since 2023 during the opening three months of 2026, according to the latest analysis from the Building Cost Information Service (BCIS).
Based on provisional data published by the Office for National Statistics (ONS), BCIS estimates that 40,770 housing starts were recorded across the UK in the first quarter of 2026.
This represents a 14% increase compared with the same period last year and a 7.2% rise on the previous quarter.
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Despite the improvement, housing starts remain 16.2% below pre-pandemic levels recorded in the first quarter of 2019.
Housing completions continue to lag behind starts
While new housing starts strengthened, growth in completions remained more subdued.
Approximately 39,890 homes were completed across the UK during the first quarter, up 2.7% year-on-year.
However, completions fell 19.1% compared with the previous quarter and remained 16.7% below levels seen in the first quarter of 2019.
England continued to account for the majority of UK housebuilding activity, representing 84.5% of all housing starts during the quarter. Around four-fifths of these were delivered by private developers, with 27,640 private enterprise starts recorded – the highest quarterly total since 2023.
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Housing association activity remained relatively subdued, with 6,590 starts in England, while local authorities recorded 240 starts during the quarter.
Across the devolved nations, Wales recorded the strongest quarterly increase in housing starts, rising 40.3% compared with the final quarter of 2025.
Scotland was the only UK nation to record a decline in starts compared with both the previous quarter and the same period last year, while Northern Ireland saw quarterly growth despite lower year-on-year activity.
BCIS: Housing sector showing resilience despite viability pressures
Dr David Crosthwaite, chief economist at BCIS, said: “Private developers and housing providers are clearly under significant pressure given ongoing viability concerns, but the latest data demonstrate the sector’s resilience.
“There were more UK housing starts in the first quarter of 2026 than in any quarter of 2025, although growth in completions remained relatively subdued.
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“This is a pivotal period for the housing market. The new administration at No. 10 has started to set out an ambitious agenda to increase council housebuilding and support a recovery in housing delivery, which is welcome.
“There is also optimism surrounding the reappointment of Housing Secretary Angela Rayner and the appointment of Chancellor John Healey, who brings previous experience as a housing minister.”
Construction industry monitoring signs of sustained recovery
The latest figures suggest housebuilding activity is beginning to recover after a prolonged slowdown, although completions continue to trail starts and overall delivery remains below pre-pandemic levels.
The data comes as contractors, developers and suppliers continue to monitor the impact of planning reforms, building safety changes and wider economic conditions on future housing delivery across the UK.
