From a very positive start to the year, contract awards have declined over the past two months with April value down 19% compared to the same period last year. Despite a positive April for Residential, the three largest projects (totalling £726m) were student accommodation developments.

Notably, new home starts in London are at a 16-year low. However, there are signs of resilience and optimism in other areas. Infrastructure stands out as a relative bright spot with an increasing volume of brick and concrete deliveries and a growing pipeline of green energy projects. The Royal Institution of Chartered Surveyors (RICS) has forecast that infrastructure will be the main driver of industry growth in the coming years. Adding momentum to the infrastructure and planning outlook (although perhaps controversially), the Chancellor has pledged to reform environmental regulations that supposedly unnecessarily hinder development.

Hopefully, this will streamline approvals and unlock stalled housing and infrastructure schemes. Despite developers’ concerns over cost implications, the government also plans to mandate solar panels on nearly all new homes by 2027. Despite some positive indicators, including increased materials deliveries and infrastructure momentum, job cuts across the sector and uncertainty driven by external pressures – such as US tariffs – suggest that the near-term outlook remains challenging.