Wales

Overview

The quarter to March was a weak period for Wales, with a decrease in project-starts, main contract awards. More positively, there was a slight increase in detailed planning approvals.

Totalling £840m, work starting on-site in Wales experienced a 36 per cent increase against the preceding quarter but stood 18 per cent down on the previous year. At £640m underlying work starting on-site (less than £100m in value) in Wales during the quarter to March decreased 28 per cent against the preceding quarter on a seasonally adjusted (SA) basis to stand 5 per cent down against the previous year. Major projects (£100m or more) totalled £200m during the period, an increase on the preceding quarter where no major projects commenced on-site but a 43 per cent decrease against the previous year.

Main contract awards in Wales decreased 3 per cent against the preceding quarter as well as 31 per cent against the previous year to total £610m. Major projects totalled £134m during the period, an increase on the preceding quarter where no major projects reached the main contract awarded stage but a 10 per cent decrease against the previous year. Underlying contract awards experienced a mixed performance, having increased 6 per cent (SA) against the preceding quarter but decreased 35 per cent against the previous year.

Adding up to £1.324bn, detailed planning approvals in Wales decreased 1 per cent against the preceding quarter to stand 5 per cent up against the previous year. Major approvals totalled £983m during this period, a 64 per cent increase on the preceding quarter and a 122 per cent increase against 2022 levels. Underlying project approvals fell 18 per cent (SA) against the preceding quarter and 58 per cent compared with a year ago.

Sector Analysis – Project-Starts

Totalling £338m private housing had the largest proportion (40 per cent) of project-starts in the quarter to March, this the sector experienced a 59 per cent increase against the previous year. Private housing projects commencing on-site included a £100m, 316-unit development in Cardiff (Project ID: 22010386). Social housing construction-starts totalled £38m and experienced a fall of 69 per cent against the previous year, to account for 4 per cent of the total value. Utilities at £59m experienced the sharpest decline of any sector, with the value of project starts falling 84 per cent against 2022 levels to account for 7 per cent of the total value.

At £293m, education experienced the sharpest increase against 2022 levels (+467 per cent) with the sector having accounted for the second greatest share of the total value (35 per cent).  Offices at £19m was another triple-digit growth sector, with the value of project-starts increasing 194 per cent against the previous year to account for a 2 per cent share of the total value.

Value of project-starts in Wales during quarter to March 2023 by sector

Sector Analysis – Detailed Planning Approvals

Health at £568m, accounted for the highest share of sector approvals (43 per cent) with the sector experiencing four-digit growth against the previous year. The strong performance in the sector was exclusively due to the approval of the “Velindre Cancer Centre” in Cardiff. Social Housing at £174m was another sector which performed well, here the value of approvals increased 74 per cent against the previous year to account for 13 per cent of the total value.

Hotel & Leisure detailed planning approvals performed strongly during the period, increasing 62 per cent against the previous year to total £341m. The sector was the second most active in the area, accounting for 26 per cent of the total value. Private Housing didn’t fare as well, the value of detailed planning approvals totalled £135m and experienced a 44 per cent decrease against 2022 levels to account for one tenth of the total value.

Value of detailed planning approvals in Wales during three months to February 2023 by sector

Forecast Construction-Starts for Wales

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