Main contract awards declined compared to both the previous quarter and the previous year. More positively, detailed planning approvals increased quarter-on-quarter and year-on-year, boosting the development pipeline.
Community & amenity overview
Community & amenity work starting on site during the three months to August totalled £482m, a 42 per cent decline against the preceding three months but a 40 per cent increase on the previous year. Major project-starts (worth £100m or more) totalled £135m, a 60 per cent decline from the previous quarter but an increase from a year ago when no major projects started on site. Underlying starts (less than £100m in value) fell 31 per cent against the preceding three months on a seasonally adjusted (SA) basis to stand 1 per cent up against last year’s levels.
Community & amenity main contract awards totalled £289m, a 30 per cent decrease during the period and 66 per cent down on the previous year. There were no major projects during the period, unchanged from the preceding three months but down from the previous year. Underlying contract awards decreased 35 per cent against the preceding three months (SA) to stand 54 per cent down against the previous year.
Detailed planning approvals grew 48 per cent against the previous three months to stand 61 per cent up against last year, totalling £429m. Major approvals totalled £300m, an increase from the preceding quarter and a year ago when no major projects were approved. Underlying project approvals decreased 31 per cent (SA) on the previous three months and fell 52 per cent against a year ago to total £129m.
Types of projects started
Prisons accounted for the highest proportion (55 per cent) of community & amenity starts, totalling £266m, due to a more than eight-fold increase from the previous year. Local facilities, totalling £95m, grew 43 per cent compared with last year, accounting for 20 per cent of the sector. Government building project starts added up to £61m, a 202 per cent increase against last year, accounting for 13 per cent of sector starts.
Blue light projects fell 51 per cent to total £35m, accounting for a 7 per cent share. Military projects experienced an 86 per cent decline against 2023 levels, totalling £18m and accounting for 4 per cent of the sector. Places of worship totalled £6m, a 68 per cent decrease on a year ago, accounting for a 1 per cent share. No law court projects started during the three months to August, unlike the same period last year.
Regional
The South East dominated community & amenity starts, accounting for 60 per cent of new work valued at £289m, having doubled on a year ago. This growth was significantly boosted by a large prison development in Bicester. Scotland accounted for 10 per cent of sector starts, having increased 37 per cent against the previous year to total £51m.
The South West starts were 20 per cent higher than last year, totalling £19m and accounting for 4 per cent of the sector. In contrast, accounting for 5 per cent at £25m, London fell 14 per cent against the preceding year. The East of England accounted for a 4 per cent share, having slipped back 73 per cent on a year ago to total £17m.
The East Midlands was the most active region for community & amenity detailed planning approvals, accounting for a 71 per cent share. The value of consents there grew almost 15 times against the previous year, solely thanks to a large prison development in Leicestershire. The South West also performed well, growing 36 per cent on the preceding year’s level, accounting for 12 per cent, with a total value of £51m.
London experienced growth in detailed planning approvals, with the value increasing 25 per cent compared with last year’s levels to total £18m, accounting for a 4 per cent share of sector consents. In contrast, despite accounting for the same share, approvals in the North West slipped back 40 per cent against the previous year to total £18m.
