Education construction sector faces continued challenges

  • 19th June 2025

Activity in the education construction sector continues to abate with the latest Glenigan Construction Review revealing a 4% decrease in project starts year on year and the number of main contract awards in the sector remaining unchanged against the preceding three months.

However, a reported 52% increase in detailed planning approvals bodes well for the coming months as it provides an indication of future activity.

The report states: “While education starts and main contract awards both declined during the three months to April, an upturn in the value of detailed planning approvals against the previous year and preceding three months points to a recovery in sector activity during 2025.

“Looking ahead, the launch of the Department for Education’s new £15.4bn national Construction Framework will help drive the design and build of new and upgraded schools across England.

“This major initiative, set to launch in December, is expected to deliver large-scale education projects across the country.”

Types of projects

Project starts in the education sector experienced a poor performance.

However, universities increased against the previous year.

Schools accounted for the largest share of project starts at 68%, despite a 46% year-on-year decline to £572m.

But universities made up the second-largest share at 21%, with starts rising 42% year-on-year to £180m.

Colleges saw a 92% year-on-year decline, with starts totalling just £24m.

Regional figures

The South East, at £144m, was the most-active region, accounting for 17% of the total value of starts.

However, the region experienced a 24% decrease against the previous year.

Starts in Northern Ireland were 14 times higher than a year ago and accounted for 4% of sector starts with a total value of £32m.

Northern Ireland accounted for the largest share of approvals (31%). Like project starts, approvals rose sharply, increasing by 378% against the previous year.

Growth in the region was accelerated by the £375m Strule Shared Education Campus development.

Wales, at £111m, also experienced triple-digit growth, rising 111% against the previous year.

The top three contractors were Kier, Bowner & Kirkland, and Morgan Sindall, with projects worth £574m, £375m, and £352m respectively; while the Department for Education, the University of Glasgow, and Con and Procure were the leading clients.

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