In the three months to January, project starts, main contract awards and detailed planning approvals all fell on the previous year, with main contract awards growing slightly compared to the previous three months.
Education overview
Totalling £691m, education work starting on-site experienced a 44 per cent decrease on the preceding three months and 41 per cent against the previous year. There were no major projects (£100m or more) starting during the period, unlike during both the previous three months and a year ago. Underlying education work starting on-site (less than £100m in value) experienced a 19 per cent decline against the preceding three months on a seasonally adjusted (SA) basis, to stand 31 per cent down on a year ago.
Education main contract awards increased 1 per cent against the preceding three months to total £917m. Despite this, the value remained 29 per cent lower than the previous year. Underlying contract awards performed poorly, slipping 1 per cent (SA) against the preceding three months to stand 15 per cent down on the previous year. There was an absence of major projects reaching the contract awarded stage, differing from the previous year but remaining unchanged against the preceding three months.
Totalling £968m, detailed planning approvals decreased 19 per cent against the preceding three months and were 6 per cent lower than last year. No major projects were granted approval during the period, in contrast with both the preceding three months and previous year. Underlying project approvals decreased 7 per cent (SA) against the previous three months but were 12 per cent higher than the same period a year ago.
Types of projects started
School project-starts totalled £541m during the three months to January and accounted for the largest value of education construction starts (78 per cent) but were still 12 per cent lower than the previous year.
Colleges were the second most active segment for project-starts, accounting for 11 per cent of the total value, despite a 29 per cent decline against last year, to total £74m.
University project-starts performed especially poorly, with the value decreasing by 90 per cent against the previous year to total £37m, accounting for a 5 per cent share of education work starting on-site.
Regional
Wales was the best performing region for project-starts, accounting for 15 per cent of the sector. Starts in Wales totalled £100m: a 113 per cent increase against the previous year. Strong growth in the region was mostly due to the £65m development of a school campus in Mold.
The South East also accounted for 15 per cent of starts in the sector, despite a 63 per cent decline against the previous year, to total £105m.
The West Midlands experienced growth against the preceding year (+75 per cent). Project-starts in the region totalled £43m to account for 6 per cent of the total value.
The value of project-starts in Scotland rose 48 per cent against the previous year to total £97m, accounting for 14 per cent of the total value. This growth was accelerated by the commencement of a new £65.7m community high school in Edinburgh.
The East Midlands also experienced growth compared to the previous year’s levels (+14 per cent), with project-starts totalling £62m to account for almost one-tenth of sector starts.
In contrast, London experienced the largest decline (87 per cent) against the previous year, accounting for only 3 per cent of the sector, delivering a total value of just £23m.
The South East experienced a strong period for detailed planning approvals in the education sector, with the value increasing 19 per cent against the previous year to total £164m. The South East had the greatest proportion (17 per cent) of approvals during the period. Totalling £114m, education approvals in the East of England were the second highest, having advanced 36 per cent against the previous year to account for 12 per cent of the sector. The consent of the £26m redevelopment of Barnfield College in Luton boosted growth in the region.
The East Midlands and the North West, accounting for 10 per cent and 7 per cent of project approvals respectively, both experienced even stronger growth with the value more than twice as high as the previous year’s total at £99m and £72m, respectively. In contrast, approvals in Northern Ireland were 96 per cent down on last year’s levels, totalling £2m. Wales also experienced a weak period, with planning approvals having fallen 71 per cent against the previous year to total £70m, accounting for 7 per cent of the sector.
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