{"id":514721,"date":"2025-02-18T12:29:50","date_gmt":"2025-02-18T12:29:50","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=514721"},"modified":"2025-02-18T12:29:50","modified_gmt":"2025-02-18T12:29:50","slug":"project-starts-down-by-a-fifth-as-major-schemes-dry-up","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/buildings\/project-starts-down-by-a-fifth-as-major-schemes-dry-up-18-02-2025\/","title":{"rendered":"Project starts down by a fifth as major schemes dry up"},"content":{"rendered":"

The value of construction projects starting on site has plummeted by almost a fifth this winter, according to new data.<\/span><\/p>\n

Industry-intelligence specialist Glenigan said 19 per cent less work got underway in the three months to 31 January than in the same period a year earlier.<\/span><\/p>\n

The research showed ground was broken on little over \u00a35bn-worth of large schemes \u2013 those individually valued at more than \u00a3100m \u2013 in the latest spell, a drop of 46 per cent.<\/span><\/p>\n

Meanwhile, the combined worth of smaller schemes starting on site only dropped by 4 per cent, to \u00a316.5bn.<\/span><\/p>\n

Private housing accounted for more than two-thirds of the total value of construction projects getting underway in the three months to January, according to Glenigan.<\/span><\/p>\n

However, the value of residential starts was still more than a tenth lower than a year earlier.<\/span><\/p>\n

New civils activity was down 41 per cent in the latest period, with health and education sectors seeing drops of 38 per cent and 22 per cent respectively.<\/span><\/p>\n

In more positive news, the value of industrial starts grew by 12 per cent, while the worth of hotel and leisure ground-breakings rose by 17 per cent.<\/span><\/p>\n

Glenigan said the pipeline of main contract awards and planning approvals each reduced by more than a fifth in the most recent rolling quarter.<\/span><\/p>\n

\u201cThis points to the likelihood of further declines in both large-scale and smaller-project starts in the months ahead,\u201d it warned.<\/span><\/p>\n

\u201cHowever, recent interest rate cuts and the prospect of a gradual economic recovery may help to restore investor confidence as the year progresses.\u201d<\/span><\/p>\n

The South East remained the busiest region for residential construction starts, although activity fell 37 per cent year on year to \u00a31.6bn.<\/span><\/p>\n

Meanwhile, the East of England and Scotland bucked the trend, experiencing growth of 73 per cent and 86 per cent respectively.<\/span><\/p>\n

London accounted for more than a quarter of the value of schemes approved by planning authorities in the latest period.<\/span><\/p>\n

Glenigan economic director Allan Wilen said: \u201cWhile housing projects are still lagging compared to last year, the government\u2019s focus on housebuilding and increasing consumer confidence should help form a growing development pipeline.<\/span><\/p>\n

\u201cThe key will be translating this potential into actual construction starts.\u201d<\/span><\/p>\n

Data from the Office for National Statistics<\/span> last week showed<\/span><\/a> that growth in the construction sector lagged behind the general UK economy in 2024.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The value of construction projects starting on site has plummeted by almost a fifth this winter, according to new data. Industry-intelligence specialist Glenigan said 19 per cent less work got underway in the three months to 31 January than in the same period a year earlier. The research showed ground was broken on little over …<\/p>\n","protected":false},"author":87938,"featured_media":459005,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[547,558],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n