Project starts and detailed planning approvals declined compared to both the previous quarter and the previous year. More positively, main contract awards increased compared to the previous quarter.
Education overview
Education work starting on site during the three months to August totalled £1.616bn, a 6 per cent decline against the preceding three months and 21 per cent down on the previous year. No major projects (worth £100m or more) started during the period, unchanged from the preceding quarter and a year ago. Underlying education work starting on site (less than £100m in value) decreased 29 per cent against the preceding three months on a seasonally adjusted (SA) basis and was 21 per cent down on a year ago.
Education main contract awards increased 51 per cent against the preceding three months to total £1.678bn, remaining 9 per cent lower than the previous year. Underlying contract awards increased 12 per cent (SA) against the preceding three months but declined by 33 per cent against the previous year. Major projects totalled £505m, an increase from the preceding three months (where there were no major projects) and a 405 per cent increase on the previous year.
Detailed planning approvals totalled £1.218bn, a 9 per cent decline against the preceding three months and 18 per cent down on last year. No major project approvals were approved during the period, a decrease from both the previous quarter and last year. Underlying project approvals fell 5 per cent (SA) against the previous quarter and decreased 10 per cent against last year.
Types of projects started
School project-starts totalled £989m during the three months to August, accounting for the largest share of education construction starts (61 per cent), having decreased 38 per cent on the previous year. Universities also fell 10 per cent against last year to total £177m, accounting for 11 per cent of the total value.
College starts, on the other hand, experienced a strong period, with the value having grown 124 per cent against the previous year to total £358m, accounting for a 22 per cent share of education sector work starting on site.
Regional
The South East was the most active region for education project-starts during the three months to August, accounting for a 23 per cent share of the sector, totalling £365m. This represented an 118 per cent increase on last year’s levels. London accounted for 15 per cent of starts in the sector and grew 67 per cent against the previous year to total £243m. The West Midlands, accounting for a 9 per cent share, climbed 9 per cent on a year ago to total £140m.
In contrast, Scotland experienced a 19 per cent slump on a year ago, totalling £195m and accounting for a 12 per cent share. The North West, also accounting for 11 per cent, experienced a weak period, with starts declining 43 per cent on a year ago to total £178m.
The West Midlands was the most active region for detailed planning approvals in the education sector, accounting for a 16 per cent share, with the value nearly tripling against a year ago to total £191m. The South West also grew 30 per cent in value against last year to total £149m, a 12 per cent share of all consents during the period. The South East increased 37 per cent compared with the 2023 figures to total £146m, also accounting for a 12 per cent share.
The North East jumped more than 37 times against last year, totalling £125m and accounting for 10 per cent of education consents. London, accounting for 12 per cent of consents, faced a 51 per cent slump, totalling £148m.
