Planning go-aheads up but construction slow
14th April 2015

UK construction started the year on a subdued note but a renewed surge in planning approvals suggests stronger growth ahead, according to new figures from industry analysts Glenigan.

The Glenigan Index for April, which covers the value of projects starting on site during the first quarter of the year, is flat on a year ago as activity struggles to keep pace with 2014 levels.

Residential starts remain unchanged on a year earlier, non-residential starts have dipped by 1% and civil engineering starts are up by a modest 3%. By contrast, the first quarter of 2014 saw activity rise by 22%, fuelled by a 33% increase in residential starts and a 20% rise in the non-residential sector.

However, Glenigan data points to a renewed surge in projects receiving detailed planning approval. During the first two months of 2015, approvals were up by 36% compared to a year earlier, with a marked 54% expansion in non-residential approvals.

Allan Wilén, Economics Director at Glenigan, said: “The overhang of last year’s relatively muted rise in approvals, coupled with some private sector clients potentially pursuing a ‘wait-and-see’ approach during the run up to the general election, may keep starts subdued into the second quarter. 

“However this replenishing bank of prospective projects with detailed permissions bodes well for growth during the second half of this year, especially if a credible government emerges quickly from the aftermath of the election.”