The construction landscape in East England is a mixed bag of growth and decline.
- Project starts have surged by 53% compared to earlier months and doubled since last year.
- Despite this, main contract awards have dropped by 65% over the last three months.
- Infrastructure leads with 66% of project starts, while private housing faces a downturn.
- Planning approvals for private housing, the largest share, have decreased by 17% since last year.
In an evolving construction landscape, the East of England has experienced contrasting trends. Overall project starts have shown significant progress, increasing by 53% from the previous quarter and doubling from last year’s figures. This surge highlights a positive momentum in the industry, driven largely by infrastructure projects, which accounted for a substantial 66% of all project starts in this period.
While the increase in project initiations is encouraging, the region faced challenges with main contract awards. These crucial awards dipped by 65% over the past three months, reflecting a 13% decline from the previous year. It indicates potential bottlenecks or hesitancies in moving from planning to execution stages of projects, despite a flourishing groundwork of project starts.
The infrastructure sector notably stands as the predominant player, contributing 66% of the total project starts, a remarkable increase from previous numbers. This growth is indicative of strategic investments in essential services and facilities, potentially providing the backbone for further development across other sectors. Utilities and social housing also reported gains, with utility projects rising by 38%.
Despite the robust activity in certain sectors, private housing witnessed a significant drop, with a 43% decrease from last year, now holding a 15% share of sector starts. This decline in private housing starts is mirrored in planning approvals. Private housing approvals accounted for 38% of the total, yet they experienced a 17% decrease compared to the previous year.
In planning approvals, industrial growth is particularly notable, with an increase of 37% leading to a total of £387 million, positioning it as a crucial area of focus after private housing. Social housing saw a remarkable 126% increase in approvals, suggesting a shift or emphasis towards affordable housing solutions. Infrastructure approvals surged by an impressive 443%, albeit still representing a smaller share of the overall project approvals.
The East of England’s construction sector exhibits dynamic shifts, with robust beginnings and notable declines in key areas.
