Yorkshire & the Humber

Overview

Project starts and main contract awards weakened against the previous year. On a more positive note, detailed planning approvals performed relatively strongly against 2022 levels.

Totalling £672m, work starting on-site in Yorkshire & the Humber during the quarter to March fell 44 per cent against the preceding quarter to stand 67 per cent down on a year ago. Underlying (less than £100 m in value) work starting on-site slipped back 57 per cent against the preceding quarter on a seasonally adjusted (SA) basis and 65 per cent compared with a year ago. Unlike the preceding quarter and the previous year, there were no major (£100m or more) project-starts.

Adding up to £1.285bn, contract awards in Yorkshire & the Humber decreased 15 per cent against the preceding quarter to stand 32 per cent lower than a year ago. Underlying main contract awards, at £1.285bn, fell 12 per cent (SA) against the preceding quarter and 27 per cent compared with a year ago. Unlike the preceding quarter and the previous year, there were no major projects reaching the main contract awarded stage.

Detailed planning approvals totalled £2.936bn in Yorkshire & the Humber, a 21 per cent increase compared with the preceding quarter to stand 69 per cent up on a year ago. Major projects totalled £1.484bn during the period, a 148 per cent increase against the preceding quarter to stand 642 per cent higher than a year ago. Underlying approvals experienced a weak period, declining 18 per cent (SA) against the preceding quarter and decreasing 5 per cent compared with last year’s levels.

Sector Analysis – Project-Starts

Private housing accounted for 48 per cent of work starting on-site in Yorkshire & the Humber during the quarter to March, despite this the value fell 48 per cent compared with the previous year. Private housing construction-starts added up to £321m during the period. Social Housing starts, at £61m, also weakened having fallen 83 per cent compared with last year’s levels. Social Housing accounted for 9 per cent of the total value, making it third most active sector in the region.

Education accounted for the second-highest proportion (12 per cent) of work starting on-site during the quarter to March, with the value adding up to £82m. The sector experienced 61 per cent growth compared with a year ago. Education was the only growth sector in the region for project-starts. Utilities work commencing on-site, adding up to £8m, experienced the sharpest decrease of any sector (-88 per cent) against the previous year to account for 1 per cent of the total value in the region.

Value of project-starts in the Yorkshire & the Humber during the three months to March 2023 by sector

Sector Analysis – Detailed Planning Approvals

Private housing detailed planning approvals, adding up to £1.655bn, experienced a triple-digit increase (+168 per cent) compared with a year ago to account for 56 per cent of the region’s total value. The biggest contributor to the growth was the approval of the £400m , Urbanite Living (Leeds  development (Project ID: 22114563). Health at £143m was another sector to experience triple-digit growth, here the value of project-approvals increased 290 per cent against 2022 levels to account for 5 per cent of the total value.

Hotel & Leisure accounted for the third highest proportion (14 per cent) of work reaching the planning approval stage during the quarter, with the value adding up to £405m. The sector experienced 260 per cent growth against the previous. Elsewhere, Industrial at £440m experienced a 30 per cent increase on 2022 levels to total £440m, accounting for a 15 per cent share of the total value.

Value of project approvals in the Yorkshire & the Humber during the three months to March 2023 by sector

Forecast Construction-Starts for Yorkshire & the Humber

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