The latest figures released by Glenigan show that despite 25% of all on-site construction projects being suspended due to the coronavirus pandemic, there has been a significant increase in planning approvals, suggesting a strong pipeline of future construction.
At present 25%1 of all UK construction projects currently on-site are suspended, with a total market value of £55bn, which is a staggering 34% of the total value of all work under-construction.2
Whilst this is having a severe and immediate impact on the industry, a firm development pipeline demonstrates that longer-term opportunities remain.
Indeed, as COVID-19 started to shut sites down in March 2020, there was a significant increase in the volume of planning approvals versus any of the previous 12 months (See Fig. 1) with health, community and amenity, education, and social housing sectors offering the greatest opportunities for the future.
And, it’s especially good news for firms operating outside southern England and the Midlands, with the North East, North West, and most notably Wales seeing the highest growth in planning approvals of all the UK regions (See Fig. 2).
Therefore, although firms are struggling to overcome herculean issues now, those that can spare some focus on the future will see that there is opportunity, and indeed, hope.
1 Excluding figures for Frameworks, and Group projects
2 Data correct as of 6th April 2020
Header image ©ceebeestock/AdobeStock.