East Midlands

Overview

Project-starts, main contract awards and detailed planning approvals performed particularly poorly in the East Midlands during the quarter to March.

Adding up to £888m, work starting on-site in the East Midlands during the quarter to March decreased 24 per cent against the preceding quarter to stand 51 per cent down on a year ago. A total absence of any major projects (£100m or more in value) commencing on-site contributed to the decline. Underlying project-starts (less than £100m) fell 44 per cent against the preceding quarter on a seasonally adjusted (SA) basis and 51 per cent compared with a year ago.

Main contract awards in the East Midlands increased 12 per cent during the quarter but decreased 10 per cent against the previous year to total £1.926bn. Underlying contract awards decreased 9 per cent (SA) on the preceding quarter and 10 per cent on the previous year. There were no major contract awards in the East Midlands during the period.

Totalling £1.487bn, detailed planning approvals fell 4 per cent against the preceding quarter and decreased 50 per cent compared with the previous year. Underlying detailed planning approvals slipped back 16 per cent (SA) against the preceding quarter to stand 35 per cent down on the previous year. No major projects were granted detailed planning consent during the quarter.

Sector Analysis – Project-Starts

Private housing accounted for 39 per cent of work starting on-site in the East Midlands during the quarter to March with the value adding up to £343m, which is 54 per cent down compared with a year ago. Social Housing accounted for joint-the second greatest share of project-starts (14 per cent) in the region, with the value adding up to £122m. However, the sector experienced a 33 per cent decline compared with a year ago. Industrial also experienced a weak period, with the value of project commencing on-site falling 91 per cent to total £44m, a 5 per cent share of the region.

On the other hand, hotel & leisure starts grew 170 per cent to total £126m, making it joint-second most active sector, with a 14 per cent share. The growth was accelerated by the commencement of the  “Becketwell Performance Venue Phase 2” in Derby (Project ID: 21350515).

Value of project starts in the East Midlands during the quarter to March 2023 by sector

Sector Analysis – Detailed Planning Approvals

Private housing also had the highest share (48 per cent) of detailed planning approvals during the quarter ending March, despite the value in the East Midlands decreasing 45 per cent compared with a year ago to total £719m. Adding up to £137m, a 9 per cent share of the region, industrial also faced a slowdown. The value of approvals in the sector fell 78 per cent against last year.

However, some sectors experienced growth during the period.  At £208m, social housing was the second most active sector in the East Midlands, accounting for 14 per cent. The value increased 4 per cent from the previous year. Offices (£105m) and Education (£144m) accounted for 7 per cent and 6 per cent of the total value respectively, each sector grew 136 per cent and 144 per cent respectively).

Value of detailed planning approvals in the East Midlands during the quarter to March 2023 by sector

Forecast Construction-Starts for the East Midlands

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