While main contract awards weakened against the previous year and preceding three months, the value of project starts grew slightly against the previous three months and detailed planning approvals increased against both the preceding quarter and last year.
North West overview
At £2.22bn, work starting on-site in the North West during the three months to July increased 17 per cent against the preceding three months but stood 13 per cent down compared with a year ago. Major projects (£100m or more in value), at £873m increased 28 per cent against the preceding three months and 45 per cent against last year’s levels. Underlying project-starts (less than £100m) fell one per cent against the preceding three months on a seasonally adjusted (SA) basis to stand 31 per cent lower than a year ago to total £1.35bn.
Totalling £1.71bn, main contract awards in the North West slipped back 24 per cent against the preceding three months to stand 41 per cent down compared with last year’s levels. Major contract awards totalled £192m, having decreased 51 per cent against the previous quarter to stand 72 per cent down on a year ago Underlying contract awards fell 12 per cent (SA) against the preceding three months and declined 32 per cent compared with last year’s levels.
Adding up to £4.29bn, detailed planning approvals grew 36 per cent compared with the preceding three months and increased 41 per cent on the previous year. Major projects at £2.03bn doubled against the preceding three months and tripled against the previous year. Underlying approvals increased eight per cent (SA) against the preceding three months but stood four per cent down compared with last year’s levels to total £2.26bn.
Sector analysis: project starts
Private housing accounted for the greatest share (51 per cent) of work starting on-site in the North West during the three months to July, despite the value falling five per cent against the previous year. Private housing construction-starts added up to £1.12bn. Further decline was prevented by the £370m, 988-unit Great Jackson Street Plot F development in Manchester. Industrial work starting on-site in the North West slipped back 71 per cent compared with last year to total £141m. The sector accounted for six per cent of the total value.
In contrast, infrastructure project-starts grew 23 per cent against the previous year to total £233m. Infrastructure accounted for 11 per cent of the total value. The growth was solely due to the £226m Carlisle Southern Link Road. Social Housing accounted for the same share, the sector also experienced sharp growth, with the value of project-starts increasing 94 per cent against the previous year to total £243m.
Value of project starts in the North West during the three months to July 2023 by sector
| Sector | Value of Project-Starts (£m) | Change on previous year | Change on two years ago | %Share |
| Private Housing | 1123 | -5% | 27% | 51% |
| Social Housing | 243 | 94% | 60% | 11% |
| Infrastructure | 233 | 23% | 4% | 11% |
| Industrial | 141 | -71% | 182% | 6% |
| Health | 135 | -3% | 153% | 6% |
| Offices | 124 | 135% | 37% | 6% |
| Retail | 61 | 60% | 47% | 3% |
| Education | 54 | -42% | -45% | 2% |
| Utilities | 45 | -77% | -58% | 2% |
| Hotel & Leisure | 37 | -21% | -71% | 2% |
| Community & Amenity | 21 | 195% | -67% | 1% |
| Total | 2218 | -13% | 17% |
Sector analysis: detailed planning approvals
As with project-starts, private housing was the dominant sector, accounting for 33 per cent of the total value, with the sector having experienced a 15 per cent growth on the previous year. Private housing consents added up to £1.01bn. Projects in the private housing sector included the £325m Albert Bridge House development in Manchester. Accounting for 19 per cent, utilities were the second most active sector in the North West during the period, having grown almost five times on a year ago to total £823m. This growth was mainly driven by the £750m Trafford Battery Energy Storage System (BESS) Project in Manchester.
Industrial detailed planning approvals, accounting for 12 per cent of the total value, climbed two per cent against the previous year to total £509m. Offices (£422m) and hotel & leisure (£446m) accounted for ten per cent each, having doubled and increase 92 per cent against last year respectively.
Value of project approvals in the North West during the three months to July 2023 by sector
| Sector | Value of Project-Approvals (£m) | Change on previous year | Change on two years ago | %Share |
| Private Housing | 1401 | 15% | -14% | 33% |
| Utilities | 823 | 364% | 626% | 19% |
| Industrial | 509 | 2% | 22% | 12% |
| Hotel & Leisure | 446 | 92% | 168% | 10% |
| Offices | 422 | 131% | 164% | 10% |
| Social Housing | 283 | 31% | 77% | 7% |
| Education | 172 | -8% | 56% | 4% |
| Health | 131 | 115% | 84% | 3% |
| Retail | 60 | -13% | 4% | 1% |
| Community & Amenity | 23 | -68% | 43% | 1% |
| Infrastructure | 18 | -85% | -13% | 0% |
| Total | 4287 | 41% | 46% |
Forecast construction starts for the North West
| Underlying project-starts (£m) | Change on previous year | |
| Quarter 1, 2021 | 2,202 | 32% |
| Quarter 2, 2021 | 1,478 | 50% |
| Quarter 3, 2021 | 1,955 | 62% |
| Quarter 4, 2021 | 1,451 | -1% |
| Quarter 1, 2022 | 2,272 | 3% |
| Quarter 2, 2022 | 2,082 | 41% |
| Quarter 3, 2022 | 1,995 | 2% |
| Quarter 4, 2022 | 1,422 | -2% |
| Quarter 1, 2023 | 1,683 | -26% |
| Quarter 2, 2023 p | 1,314 | -37% |
| Quarter 3, 2023 f | 1,867 | -6% |
| Quarter 4, 2023 f | 1,726 | 21% |
| Quarter 1, 2024 f | 2,208 | 31% |
| Quarter 2, 2024 f | 1,826 | 39% |
| Quarter 3, 2024 f | 2,054 | 10% |
| Quarter 4, 2024 f | 1,639 | -5% |
Note: Underlying projects are schemes with a construction value of £250,000 to £100m. Forecast updated in August 2023 p – provisional, f – forecast. Source: Glenigan
