The value of UK housing projects starting on site has dropped for the first time in 18 months, according to the latest figures from construction analysts Glenigan.

The Glenigan Index for October rose by 2% compared to a year earlier. However the underlying value of residential starts fell by 6%.

Private housing project starts increased by just 1% in the third quarter of the year, compared to the same period in 2013. This, combined with a 17% fall in social housing starts, dragged the Glenigan Residential Index into minus figures for the first time since April 2013.

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The figures follow the release of the latest Nationwide House Price Index on Tuesday which reported a 0.2% drop in UK house prices in September, fuelling fears of a property market slowdown.

Allan Wilén, Economics Director at Glenigan, said: "Despite signs that the breakneck growth in house prices and purchasing activity is easing, market conditions remain positive for house builders.

"Signs of a stabilisation in new project starts underlines the challenge the government faces in meeting housing need."

(CD/JP)