Detailed planning approvals declined compared to both the previous quarter and the previous year. More positively, project starts and main contract awards increased compared to the previous quarter and 2023 levels.
Education overview
Totalling £2.246bn, education work starting on site grew 50 per cent on the preceding three months to stand 9 per cent up on the previous year. Major projects (£100m or more) starting during the period totalled £375m, and from the preceding quarter and a year ago when no major projects commenced on site. Underlying education work starting on site (less than £100m in value) remained unchanged against the preceding three months on a seasonally adjusted (SA) basis and was 9 per cent down on a year ago, totalling £1.871bn.
Education main contract awards increased 41 per cent against the preceding three months to total £1.738bn, with the value remaining 4 per cent higher than the previous year. Underlying contract awards increased 15 per cent (SA) against the preceding three months and declined by 20 per cent against the previous year. Major projects totalled £485m, an increase on the preceding three months where there were no major projects and a 385 per cent increase on the previous year.
Totalling £1.194bn, detailed planning approvals decreased 18 per cent against the preceding three months to stand 19 per cent down on last year. No major project approvals were approved during the period, a decrease on the previous quarter and last year. Underlying project approvals fell 12 per cent (SA) against the preceding three months and decreased 10 per cent against last year.
Types of projects started
School project-starts totalled £1.662bn during the three months to September and accounted for the largest share of education construction starts (74 per cent), having increased 3 per cent on the previous year. Colleges also grew 55 per cent against last year to total £329m, accounting for 14 per cent of the total value.
University starts also experienced a strong period, with the value having grown 15 per cent against the previous year to total £195m, accounting for a 9 per cent share of education sector work starting on site.
Regional
London was the most active region for education project-starts during the three months to September, accounting for an 18 per cent share of the sector with a total value of £406m, having increased 180 per cent on last year’s levels. Northern Ireland accounted for 17 per cent of starts in the sector and jumped more than eight times against the previous year to total £379m, almost solely due to the £375m Strule Shared Education Campus in Co Tyrone. Accounting for a 14 per cent share, the South East grew 68 per cent on a year ago to total £320m.
Accounting for a 9 per cent share, the South West also experienced a strong period. Starts in the region totalled £192m, having more than doubled on a year ago. In contrast, totalling £219m, the East of England experienced a 41 per cent slump on a year ago and accounted for a 10 per cent share.
The North West was the most active region for detailed planning approvals in the education sector, accounting for a 13 per cent share, with the value having climbed 3 per cent against a year ago to total £152m. The South West and the South East grew 17 per cent and 43 per cent in value against last year to total £144m and £141m respectively, accounting for 12 per cent share each. Accounting for an 8 per cent share, Yorkshire & the Humber increased 36 per cent compared with the 2023 figures to total £98m.
In contrast, adding up to £145m, London fell 42 per cent against last year, accounting for 12 per cent of education consents. At £103m, the East of England faced a 14 per cent slump, accounting for 9 per cent of consents. Accounting for the same share, approvals in the West Midlands totalled £110m, unchanged from a year ago.
