The education construction sector is helping to buck the trend across the wider industry, with a 29% increase in the value of projects starting on site in the first three months of this year.

According to the latest Construction Market Review from Glenigan, while main contract awards and detailed planning approvals declined against both the previous quarter and the same period last year; more positively, project starts grew on the preceding three months.

Totalling £1.3bn, education work starting on site grew 29% on the three months to the end of March 2024 to stand 26% down on the previous year.

No major projects (worth £100m or more) started during the period, a decrease from both the preceding quarter and a year ago.

But underlying education work starting on site (less than £100m in value) increased 3% against the preceding three months on a seasonally-adjusted (SA) basis and was 17% down on a year ago.

Education main contract awards decreased 2% against the preceding three months to total £1.08bn, with the value remaining 27% lower than the previous year.

Underlying contract awards increased 4% (SA) against the preceding three months, but declined by 27% against the previous year.

And no major projects reached the contract awarded stage, down on the preceding three months, but unchanged on the previous year.

Totalling £11.1bn, detailed planning approvals – an indicator of the future project pipeline – fell 14% against the preceding three months and were 23% lower than last year.

Like project starts and main contract awards, there were no major project approvals, a decrease from both the previous quarter and a year ago.

A pipeline for the future

And underlying project approvals fell 12% (SA) against the previous three months to stand 17% down against last year.

School projects starts accounted for the largest share of education construction starts (61%), according to the report, despite an 8% decline on the previous year.

Universities also fell 54% against last year to total £192m, accounting for 14% of the total value.

College project starts, on the other hand, experienced a strong period, with the value having grown 32% against the previous year to total £296m, accounting for a 22% share of education starts on site.

Across the regions

Regionally, Scotland was the most-active region for education project starts during the three months to March, accounting for an 18% share of the sector to total £240m, despite having decreased 35% on last year’s levels.

The South East accounted for 9% of starts in the sector and fell 70% against the previous year to total £124m.

Accounting for the same share, the West Midlands decreased 3% on a year ago to total £120m.

In contrast, totalling £140m, the North East experienced a 282% increase on a year ago.

The region accounted for an 11% share of education projects commencing on site.

Accounting for 10%, the North West also experienced a strong period with starts in the region totalling £135m, having grown 93% on a year ago.

London was the most-active region for detailed planning approvals in the education sector, accounting for a 24% share, with the value having more than doubled on a year ago to total £268m.

Scotland also grew 10% in value against last year to total £231m, a 20% share of all consents during the period.

In contrast, adding up to £125m, the North East fell 31% against last year, accounting for 11% of education consents, while the North West decreased 44% on a year ago to total £110m, a 10% share of approvals.

Top contractors over the report period were Royal BAM with 16 projects totalling £566m and Morgan Sindall, with 50 projects worth £466m.

The leading clients were the Department for Education, with 209 projects worth £1.01bn; and Kier, which is working on seven projects valued at £125m.