Election jitters stall project starts

Aaron Morby 9 years ago
Share

Private developers have hit the brakes ahead of the general election, according to a survey of project starts.

Industry analyst Glenigan warned the wait-and-see approach taken by developers had contributed to an 11% fall in project starts during the three months to April.

The contraction in office, retail and industrial activity was the sharpest since December 2009, with the underlying value of project starts 21% lower than a year earlier.

Office starts fell by 50% compared to a year ago, with the retail and industrial sectors decreasing by 32% and 27% respectively.

Hotel and leisure remained in growth mode over the last three months along with private housing which edged ahead 4%.

In the public sector, education starts also contracted sharply, with universities appearing to delay schemes until after 7 May. The underlying value of starts of university projects plummeted from over £400m a year ago to under £100m during the latest period – the weakest quarterly total since the end of 2010.

This has dragged the value of education starts down by a third relative to a year earlier.

Allan Wilén, Economics Director at Glenigan, said: “We expect construction starts to spring back during the second half of the year, so long as a credible government is formed and the prospect of a second general election later in the year fades. This would mitigate the impact of the recent slowdown.

“Continued improvements in planning approvals add weight to the view that this is a pause rather than a permanent shift in market conditions.”

Latest news

Wates wins former Daily Mail printworks transformation

British Land advances major cultural venue at London’s Canada Water
16 mins ago

Mace poaches Ramboll chief to be Head of Engineering

Martin Feakes will develop civil and structural engineering offer at Mace
17 mins ago

Subcontractors form alliance for major civils jobs

Trio of specialists join forces to collaborate and offer Tier 1 contractors a turnkey solution
4 hours ago

Fear of supply chain failures boosting collaboration

Procurement survey also reveals project bank account use is rising
3 hours ago

Wates sets up business to target 160,000 mouldy social homes

Healthy Homes service will be offered to social landlords across England
4 hours ago

Higgins wins £75m Peabody Passive House job

Latest phase of Deptford Landings to start construction
4 hours ago

Contractors and unions agree Sizewell C working deal

New deal offers improved sick pay and parental leave over Hinkley Point deal
15 hours ago

Competition chiefs win legal fight for more construction raids

High Court rules CMA officials can raid a domestic property as part of investigation
21 hours ago

More Osborne companies file administration notices

Three more divisions lodge notices with court
1 day ago

McLaren wins multi-storey urban logistics contract

South London win with British Land is pioneering urban logistics hub
1 day ago

Big social housing schemes at risk over funding uncertainty

Housing associations warn uncertainty over public funding beyond 2026 is curbing new schemes
1 day ago

Kier wins Worcestershire town centre renewal

Firm secures Bromsgrove commercial and cultural hub project
1 day ago

BAM signs Kent school contract at £42m

Sevenoaks school rebuild signed off at £8m more than first estimates
1 day ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
4 days ago

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
4 days ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
4 days ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
4 days ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
4 days ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
4 days ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
5 days ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
5 days ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
6 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
5 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
5 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
5 days ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
6 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
5 days ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
6 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
6 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
6 days ago

Contractor services