UK construction activity October 2023: Community & amenity

Project-starts, main contract awards and detailed planning approvals all fell against last year. More positively, growth in projects starting on site and consents on the previous quarter provides a boost to the development pipeline. 

Community & amenity overview

Community & amenity work starting on site totalled £300m during the three months to October - three per cent growth compared with the preceding three months - but 75 per cent down on the previous year. Unlike last year but the same as the previous quarter, there were no major project-starts (£100m or more). Underlying project-starts (less than £100m in value) fell five per cent against the preceding three months on a seasonally adjusted (SA) basis to stand 24 per cent down against last year’s levels.

Community & amenity main contract awards, adding up to £443m, experienced a 42 per cent decrease against the preceding three months to stand 38 per cent down on the previous year. Underlying contract awards experienced a strong performance, increasing three per cent against the preceding three months (SA) to stand 41 per cent up on 2022 levels. There were no major projects, unlike both previous periods.

Detailed planning approvals jumped 54 per cent against the previous three months but stood 51 per cent down against last year, totalling £374m. Like project-starts and main contract awards, there were no major approvals. Underlying project approvals grew 40 per cent (SA) on the previous three months but fell 23 per cent against a year ago.

Types of projects started

Totalling £98m, local facilities projects accounted for the highest proportion (33 per cent) of community & amenity starts, as the value grew 22 per cent on a year ago. Law courts, totalling £7m, also grew nearly three times compared with last year, accounting for just two per cent of the sector. In contrast, adding up to £61m, prison project-starts fell 90 per cent against last year, despite accounting for the second largest share (20 per cent).

Blue light projects worth £40m started during the three months to October, 65 per cent lower than the same period last year, to account for 13 per cent of sector starts. Places of worship also experienced a sharp decline, slipping back 52 per cent to total £19m, a six per cent share of the sector. Accounting for the same share, government buildings totalled £18m, a 61 per cent decline on a year ago.

Regional

The South East dominated community & amenity starts, accounting for 27 per cent of work starting on site at £80m, having more than doubled on a year ago. Growth was boosted by the £36m IFP 2 development in Reading. The East of England accounted for 21 per cent of sector starts and jumped 82 per cent against the previous year to total £65m. Projects in the East of England included the £46.5 HMP Wayland Accelerated Houseblocks Development Programme in Thetford. At £29m, accounting for nine per cent, the North East tripled against the preceding year.

Starts in Wales quadrupled against the previous year to total £22m, a seven per cent share of starts. In contrast, despite each accounting for the same share at £21m, project-starts in the East Midlands and London slipped back 58 per cent and 41 per cent respectively. Project-starts in Scotland also accounted for a seven per cent share, having decreased 89 per cent on last year to total £20m. Yorkshire & the Humber experienced the steepest decrease (98 per cent) compared with last year’s levels, bringing the total value down to £8m. As a result, project-starts in the region only accounted for a three per cent share.

At £76m, the South East was the most active region for community & amenity detailed planning approvals. Accounting for a 20 per cent share, the value of consents there slipped back 56 per cent against the previous year. In contrast, at £73m, Wales performed well, having grown 13 times on the preceding year’s level, accounting for 19 per cent of the total value. Growth in the region was boosted by the £56.63m South Wales Police Tactics Facility in Bridgend.

London was another region to experience growth, with consents increasing nearly three times on 2022 levels, accounting for a 17 per cent share of the sector. Approvals in Scotland grew 49 per cent against the previous year to total £42m, an 11 per cent share of the sector. Accounting for a ten per cent share, the South West totalled £36m, which is 11 per cent higher than a year ago. Totalling £28m, approvals in the West Midlands tripled against the previous year, accounting for an eight per cent share of the sector.