UK construction activity March 2025: East Midlands

Main contract awards performed poorly against the previous year and the preceding quarter. Positively, strong growth in project starts and detailed planning approvals, quarter-on-quarter and year-on-year, provides a boost to the development pipeline

East Midlands overview

Adding up to £2.7bn, work starting in the East Midlands during the three months to March jumped 114 per cent against the preceding three months to stand 104 per cent up on a year ago. At £1.16bn, major projects (£100m or more in value) starting on site grew against the previous quarter and last year, when no major projects started. Underlying project starts (less than £100m) fell 23 per cent against the preceding three months on a seasonally adjusted (SA) basis but were 16 per cent higher compared with a year ago, totalling £1.54bn.

Main contract awards in the East Midlands fell 56 per cent during the three months and decreased 47 per cent against the previous year to total £1.03bn. At £337m, major contract awards decreased 44 per cent on the preceding three months to stand 46 per cent down on the previous year. Underlying contract awards totalled £689m, a 57 per cent decline (SA) against the previous period and 47 per cent lower than a year ago.

Totalling £3.1bn, detailed planning approvals grew 61 per cent against the preceding three months to stand 65 per cent up on last year. Major project approvals grew 173 per cent on the preceding three months and increased 267 per cent on a year ago to total £1.38bn. Underlying detailed approvals increased 32 per cent (SA) against the preceding three months to stand 15 per cent higher than last year to total £1.73bn.

Sector analysis: project starts

Private housing accounted for 47 per cent of all work starting in the region, with the value adding up to £1.27bn. The sector experienced a strong period, with the value of starts having increased 91 per cent against the previous year. Industrial projects worth £698m jumped almost seven times against the previous year to account for a 26 per cent share of the total value.

Community & amenity also experienced strong growth during the three months to March. Having jumped 366 per cent against the previous year, the sector accounted for 13 per cent of project starts in the East Midlands, totalling £349 million. Accounting for a four per cent share at £109 million, health almost quadrupled on a year ago.

Value of project starts in the East Midlands during the three months to March 2025 by sector

Sector analysis: detailed planning approvals

Utilities accounted for the highest share of approvals (67 per cent), having grown more than five times against last year’s levels to total £2.07bn. Totalling £89m, hotel & leisure also had a strong performance, with the sector experiencing a 252 per cent increase from a year ago to account for a three per cent share of the total value.

In contrast, accounting for an 18 per cent share, private housing slipped back 30 per cent compared with a year ago to total £559m. Adding up to £169m, industrial consents fell 51 per cent against last year, to account for a five per cent share of the region.

Value of detailed planning approvals in the East Midlands during the three months to March 2025 by sector

Forecast construction starts for the East Midlands

Note: Underlying projects are schemes with a construction value of £250,000 to £100m. Forecast updated in April 2025, p – provisional, f – forecast. Source: Glenigan