Social Housing

Social Housing – Overview

Project-starts, main contract awards and detailed planning approvals all decreased on the previous year.

Totalling £1,487 million, social housing work starting on-site increased 19% during the three months to March to stand 54% down on the previous year. Major projects (£100 million or more) at £250 million increased on the preceding three months where no major projects commenced but decreased 59% on 2022 levels. Underlying (less than £100 million in value) project-starts performed poorly, falling 41% against the preceding three months (SA) on a seasonally adjusted basis and 52% compared with 2021 levels.

Social housing main contract awards totalled £2,290 million during the three months to March, 25% decline compared with the preceding three months to stand 11% down on a year ago. Major projects which £693 million, decreased 47% against the preceding three-month period but stood 26% up compared with the previous year. Underlying contract awards fell 8% (SA) against the preceding three months and 21% compared with a year ago to total £1,597 million.

Adding up to £2,136 million, social housing detailed planning approvals decreased by 11% compared with the preceding three months to stand 26% down compared with a year ago. Major project approvals totalled £563 million, being 5% lower than the preceding three months but 9% up on the previous year. Underlying approvals performed poorly, falling 18% (SA) against the preceding three months and by a third compared with the previous year to total £1,573 million.

Social Housing – Types of Projects Started

Apartment projects fell 49% compared with a year ago to total £617 million, despite this apartments was the dominant segment, accounting for 42% of the sector.

Surprisingly, housing accounted for the second greatest proportion of social housing work starting on-site during the period (40%) with the value adding up to £598 million, a 39% fall against 2022 levels. Student accommodation experienced a particularly poor period, with project-starts falling 80% against the previous year to total £183 million.

Regional Analysis – Project-Starts

Most areas of the UK experienced poor periods for social housing project-starts, including London where the value was 68% lower than that of the previous year. Work starting on-site added up to £372 million, a 25% share of the total value. Yorkshire experienced the sharpest decline (-83%) compared with the previous year.

However, there were some regional bright spots including the North East where the value of social housing construction-starts increased four-digits against the previous year to total £334 million. The region accounted for the second-highest proportion (22%) of the sector. The North East was the only growth region for social housing during the period.

Social Housing Project-Starts during the three months to March

Regional Analysis – Detailed Planning Approvals

London was dominant for social housing detailed planning approvals during the three months to March, accounting for 43% of the total value. Despite this, the Capital experienced a 12% decline compared with a year ago to total £913 million. The West Midlands accounted for the joint second-highest proportion of social housing approvals (10%) and experienced a decline (-14%) compared with a year ago.

Social housing approvals in the East Midlands advanced 4% against the previous year to total £208 million, accounting for 10% of the sector. The North East experienced the sharpest growth, here the value of planning approvals more than doubled (+103%) against 2022 levels to total £42 million, a 2% share of the total value. Wales at £174 million also experienced a strong period, advancing 74% against the previous year to account for 8% of the total value.

Social housing Detailed Planning Approvals during the three months to March

Forecast Construction Starts for Social Housing

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