Construction activity November 2023: East Midlands

Project starts, detailed planning approvals and main contract awards all performed poorly against the previous three months and 2022 figures.

East Midlands overview

Adding up to £848m, work starting in the East Midlands during the three months to November fell 29 per cent against the preceding three months to stand 60 per cent down on a year ago. There were no major projects (£100m or more in value) starting on-site, a decrease from the previous quarter and last year. Underlying project starts (less than £100m) declined 13 per cent against the preceding three months on a seasonally adjusted (SA) basis: a 47 per cent decrease compared with a year ago.

Main contract awards in the East Midlands fell 12 per cent during the three months and decreased 25 per cent against the previous year to total £1.59bn. At £1.14bn underlying contract awards declined 20 per cent (SA) on the preceding three months and slipped back 40 per cent on the previous year. Major contract awards totalled £449m, an 87 per cent increase on the previous three months and twice as high as a year ago.

Totalling £2.2bn, detailed planning approvals fell one per cent against the preceding three months to stand six per cent down compared with the previous year. Major project approvals slipped back 63 per cent on the preceding three months and decreased 39 per cent on a year ago to total £254m. Underlying detailed approvals increased three per cent (SA) against the preceding three months and stood one per cent up on the previous year to total £1.94bn.

Sector analysis: project starts

Private housing accounted for 46 per cent of work starting on-site in the East Midlands during the three months to November with the value adding up to £386m, which is 70 per cent down compared with a year ago. Infrastructure accounted for eight per cent, with the value adding up to £65m. The sector also experienced a 75 per cent decline compared with a year ago.

Industrial and health each accounted for a seven per cent share, having decreased 72 per cent and 23 per cent to total £57 million and £63 million respectively. In contrast, social housing experienced a strong period, with the value of projects commencing on site having increased 47 per cent on a year ago to total £139m, a 16 per cent share of the region. The growth was boosted by the £61.97m, 143-unit D&G Talbot Street development in Nottingham.

Value of project starts in the East Midlands during the three months to November 2023 by sector

Sector analysis: detailed planning approvals

Private housing accounted for the highest share of approvals (57 per cent), with a three per cent increase against 2022 levels to total £1.24bn. Projects in the sector include a £149.25m, 473-unit development in Nottingham. Adding up to £157m, health consents doubled against last year, to account for a seven per cent share of the region,

Utilities also experienced sharp growth having increased nearly eight times compared with a year ago to total £97m, accounting for a four per cent share of approvals. Totalling £381m, industrial didn’t fare as well, with the sector experiencing an 18 per cent decline on 2022 levels to account for 17 per cent of the total value, the second most active sector in the region.

Value of project approvals in the East Midlands during the three months to November 2023 by sector

Forecast construction starts for the East Midlands

Note: Underlying projects are schemes with a construction value of £250,000 to £100m. Forecast updated in December 2023 p – provisional, f – forecast. Source: Glenigan