Activity in the education construction sector experienced a mixed three months to June, with a 33% increase in project starts, a 50% increase in contract awards, but a 41% drop in detailed planning approvals.

Glenigan’s July Construction Review reveals that while project starts and main contract awards increased against the preceding three months, they remained below the previous year’s levels.

Elsewhere, detailed planning approvals declined on both, potentially weakening the development pipeline moving forward.

The report states: “The 2025 Spending Review outlined several initiatives, including a government commitment of approximately £2.4bn per year to the School Rebuilding Programme over the next four years.

“This marks a significant increase from previous years and signals a clear commitment to long-term investment in school infrastructure.

“In addition, annual spending on school maintenance and repairs will rise by around £400m, reaching £2.3bn by 2029-30, further strengthening the school’s segment.”

Types of projects

According to the report, schools, at £606m, accounted for the largest share of starts (48%). However, the sector declined 39% against the previous year.

Colleges, at £324m, accounted for the second-largest share of starts (26%), the sector increased 51% against the previous year.

And universities increased 163% against the previous year to total £293m.

Regional figures

London was the most-active region for project starts, accounting for 27% of the total value, worth £342m, a 45% increase against the previous year.

The East of England also experienced a strong period, increasing 101% against the previous year to account for 10% of the total value, worth £121m.

And the West Midlands accounted for the largest share of planning approvals (22%) and was the only region to experience growth, rising 56% against the previous year to total £193m.

Elsewhere, the South East accounted for 21% of the total value, with the region experiencing a 15% decline against the previous year to total £189m.

The top three contractors were Kier (23 projects worth £399m), Morgan Sindall (39 projects worth £398m), and Multiplex Construction (one project worth £30om).

The leading clients were the Department for Education (66 projects worth £765m), The University of Glasgow (two projects worth £301m), and CPD (one project worth £188m).