Construction starts plunge 49% but contract awards soar
Summary
Glenigan’s latest review shows a sharp fall in construction starts over the summer, even as main contract awards rose strongly, suggesting a healthier future pipeline than current activity levels imply. The report points to public sector-led momentum, especially in health and infrastructure, while also highlighting planning delays, regulatory change and financing pressures.
Why it matters
Residential property surveyors should note the mixed signal between current starts and future workload, as it may affect project pipelines, development viability and timing of instructions. The planning and regulatory pressures described could also influence site progress, valuations and risk assessments on residential schemes.
Key points
- Project starts fell 49% quarter-on-quarter and 28% year-on-year.
- Main contract awards rose 45% over the quarter and 120% year-on-year.
- Health and infrastructure schemes are driving much of the pipeline growth.
- Detailed planning approvals declined, with local planning departments under strain.
- The Infrastructure Levy and financing conditions are affecting developer decisions.
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