In April 2024, construction activity in the South West of England revealed a mix of declines and growths. Project starts and main contract awards showed positive trends, despite lower detailed planning approvals compared to previous periods.
- The total value for work commencing on site reached £1.38bn, marking a 16 per cent rise from the preceding quarter but a 15 per cent decrease from the previous year.
- Major project starts dropped significantly by 63 per cent from the prior quarter, totalling only £100m.
- Main contract awards improved, rising by 42 per cent against the previous quarter, but remained 37 per cent lower than a year ago.
- Detailed planning approvals suffered a drop of five per cent from the recent quarter, reflecting a 17 per cent fall from last year’s figures.
The first quarter of 2024 saw construction activity in the South West amounting to £1.38bn in site commencements, a significant increase of 16 per cent from the last quarter but still a 15 per cent decline from April 2023. Despite this uptake, major projects valued above £100m encountered a stark decrease of 63 per cent compared to the previous quarter, reaching only £100m overall.
Conversely, main contract awards in the region showed a healthier performance. They surged by 42 per cent relative to the previous quarter, although they were down 37 per cent from the preceding year, amounting to £1.73bn. This discrepancy underscores the varying levels of activity within the sector.
Detailed planning approvals were notably reduced, dropping five per cent from the previous quarter to stand 17 per cent lower than the same period last year at £2.43bn. Within this framework, major approvals fell by 23 per cent against the last quarter, and by 22 per cent on a year-over-year basis, totalling £642m.
The sectoral analysis depicted private housing as a dominant force, making up 43 per cent of project starts at £588m, despite a 32 per cent year-over-year decline. Social housing represented a smaller share of seven per cent, with values plummeting by 67 per cent to £92m. Education’s contribution was similarly subdued, dropping by 21 per cent from the previous year to £110m.
In contrast, the health sector displayed resilience and growth. It accounted for 11 per cent of project starts, having grown by 67 per cent year-over-year to £151m, primarily supported by the substantial £100m Health Infrastructure Plan 2 in Dorchester.
The private housing sector also led detailed planning approvals, constituting 49 per cent of the region’s total, albeit with a 10 per cent decline from the prior year to £1.24bn. Notably, the office sector experienced a remarkable increase, multiplying its approvals over tenfold to capture a 19 per cent share, fueled by the significant £225m Isambard-AI project in Bristol.
Social housing approvals increased remarkably by 139 per cent, reaching £296m and comprising 12 per cent of the approvals in the region. Additionally, hotel and leisure approvals surged by 131 per cent, representing a seven per cent share at £179m.
The analysis underscores the dynamic fluctuations within the South West construction sector, highlighting areas of both strength and concern.
