East of England

Overview

Projects starting on-site and detailed planning approvals both weakened during the quarter to March. However, strong growth in main contract awards boosted the development pipeline.

The total value of project-starts in the East of England was £1.33bn, which is a 2 per cent decrease against the previous quarter and 44 per cent down on last year. Underlying projects (less than £100m) starting on-site slipped back 47 per cent against the preceding quarter on a seasonally adjusted (SA) basis to stand 56 per cent lower than a year ago, totalling £1.043bn. Major project-starts (£100m or more in value), at £287m , grew 3 per cent against the previous quarter, which is an improvement from the same period last year when there were no major projects starting on-site.

Totalling £4.08bn, main contract awards increased 50 per cent against the previous quarter and jumped 48 per cent on the preceding year. At £1.802bn, major project contract awards experienced a very strong period with the value increasing 261 per cent against the previous quarter, as well as 273 per cent compared with the same period last year. Underlying contract awards increased 8 per cent against the preceding quarter (SA) and by 1 per cent against the previous year to total £2.278bn.

Detailed planning approvals, at £1.923bn, fell 33 per cent during the quarter to March and were 65 per cent lower than a year ago. Major-approvals suffered an especially sharp fall, having decreased 90 per cent against the previous quarter and 97 per cent on a year ago. Underlying planning approvals did not perform well either: adding up to £1.822bn, the value fell 11 per cent against the previous quarter (SA) to stand 13 per cent down against last year’s figures.

Sector Analysis – Project-Starts

Totalling £377m, private housing accounted for 28 per cent of project-starts during the quarter to March, making it the most active sector despite the value decreasing by 57 per cent against the previous year. Industrial project-starts also had a weak period: adding up to £222m, they fell 41 per cent compared with a year ago to account for 17 per cent of the region.

In contrast, while accounting for 20 per cent of projects commencing on-site, infrastructure project-starts experienced a triple-digit increase (+471 per cent) to total £263m. The sector was boosted by the £157.07m Beaulieu Park Railway Station (Project ID: 10034500). Utilities also performed very well, increasing 59 per cent against the previous year to total £68m, a 5 per cent share of the total value.

Value of Project-Starts in the East of England during the quarter to March 2023 by Sector

Sector Analysis – Detailed Planning Approvals

Like project-starts, private housing accounted for the largest share of planning approvals (44 per cent) in the region during the quarter to March. The sector experienced a decline of 33 per cent compared with last year’s levels to total £849m. Utilities experienced the sharpest decrease of any sector, with the value of planning approvals falling 99 per cent to total £33m, a 2 per cent share of the total value.

Industrial approvals increased 11 per cent against the previous year to total £291m, a 15 per cent share of the region, making it the second most active region. Infrastructure accounted for 12 per cent of approvals in the East of England, having increased 352 per cent value compared with a year ago to total £230m. Consents in the sector included the £100m A47 Wansford to Sutton dual carriageway (Project ID: 14432369).

Value of project approvals in the East of England during the three months to February 2023 by sector

Forecast Construction-Starts for the East of England

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