Education construction boom in 2025

  • 23rd January 2025

 

Construction projects starting on site in the education sector are set to increase by 3% during 2025, according to the latest Glenigan Construction Review, published earlier this month.

And increased capital funding could help to protect the growth in the market witnessed during 2024.

The special report – reviewing activity in 2024 against predicted market trends for the coming year – reveals that the education sector saw a boost in project starts in 2024, though main contract awards and detailed planning approvals declined compared to 2023.

Education work starting on site reached £7.1bn, an 18% increase year on year.

Major projects (worth £100m or more) surged 4.5 times to £895m, while underlying starts (less than £100m in value) grew 7% to £6.2bn.

Main contract awards in education decreased by 1%, totalling £5.7bn and underlying awards fell 13% to £5bn; while major projects increased dramatically by 685% to £785m.

Detailed planning approvals – often an indicator of activity going forward – totalled £5.4bn, a 4% decline from the previous year; while major project approvals rose 51% to £530m and underlying approvals fell 8% to £4.9bn.

School projects remained dominant in 2024

Activity by sector

School projects remained dominant, accounting for 64% of the sector at £4.6bn, a 21% increase compared to 2023.

College projects experienced a strong period, growing 56% to £1.1bn, accounting for 16% of total education starts; but university projects experienced a slight decline, with a 1% decrease to £1bn, representing 15% of education sector starts.

Countrywide variations

In 2024 Scotland was the leading region for education project starts, accounting for 15% of the sector at £1bn, up 6% from 2023.

The South East accounted for 12% of sector starts, climbing 4% to £869m, while London jumped 91% year on year to £865m, also representing 12% of the total.

Wales saw a 39% increase, with project starts reaching £614m and representing 8% of the sector.

Northern Ireland also had a strong year, more than doubling its project starts to £572m, accounting for 8% of the sector.

The South West and Yorkshire & the Humber each accounted for 8%, with the South West growing 46% to £544m and Yorkshire & the Humber increasing 105% to £543m.

In detailed planning approvals, Scotland led the sector with £799m, up 21% from 2023 and representing 15% of the total.

London’s approvals grew 8% to £768, accounting for 14%, while the South East increased 23% to £695m, representing 13%.

Approvals in the West Midlands were up 9% to £439m, accounting for 8%, but the North West saw a 24% decline, with £505m in approvals, representing 9% of the total.

The East of England also experienced a decline, down 20% to £444m, accounting for 8%.

The report provides a league table of the leading contractors and clients from across the education sector

Looking ahead

In 2025, the report predicts:

  • A 3% forecasted growth in education construction starts
  • More funding directed toward the School Rebuilding Programme and addressing RAAC issues set to help drive construction starts this year
  • The £80.3m Ardrossan Community Learning and Innovation Hub development is set to launch in 2025

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