A mixed outlook for education construction
Activity in the education construction sector experienced a mixed three months to March although poor performances in project starts and main contract awards were countered by an increase in the value of detailed planning approvals against the previous year and the preceding three months.
Glenigan’s April Construction Review reveals a 37% decrease in project starts year on year, an 11% decrease in main contract awards against a year ago, and a 17% increase in detailed planning approvals compared to the previous year
The rise in detail planning approvals bodes well for sector activity over the coming months.
And this, combined with a 21% rise in capital funding for the Department for Education during 2025/26, should help lift starts during the second half of 2025, says the report.
Types of projects
Schools accounted for the largest share of starts (63%), totalling £740m, although they declined 44% against the previous year
Universities were the second-largest category (23%), increasing 44% year on year to £267m.
Colleges declined 87% against the previous year to total £37m.
Regional figures
Sector starts in the South East rose by 38% against a year ago to £179m, and, at 15% of starts, the region was most-active during the quarter.
Northern Ireland, at £32m, experienced a strong period, increasing five times against the previous year to account for 3% of the total value.
In planning approvals, Northern Ireland also accounted for the largest share of approvals (25%), as with project starts the area experienced sharp growth, rising 378% against the previous year.
Growth in the area was accelerated by the £375m Strule Shared Education Campus development.
Wales, at £153m, experienced the sharpest increase of any area, rising seven times on the previous year to account for 9% of the total value.
The top three contractors were Kier, Bowner & Kirkland, and Morgan Sindall while the Department for Education, the University of Glasgow, and Con and Procure were the leading clients.