Tough quarter for education construction sector

  • 25th February 2025

The education construction sector had a weak three months to January, with declines in project starts and detailed planning approvals compared to both the previous quarter and the previous year.

Main contract awards fared slightly better, however, increasing year on year but remaining below the previous quarter.

The figures were revealed this week by Glenigan, one of the construction industry’s leading insight and intelligence experts, in its February Construction Review.

But it also reveals that, despite this slow start to the year, education project starts are forecast to grow by 3% in 2025, with school building projects expected to be the main driver.

Sector-specific schemes

Project starts in the education sector declined across all categories year on year.

Schools accounted for the largest share (65%), totalling £650m, but declined 21% year on year; and universities followed, with £135m (12% share), experiencing a 44% decline.

Colleges also fell 35% year on year, totalling £105m.

Regional activity

The South East was the most-active region, with project starts totalling £215m (21% share), representing a 24% increase year on year.

And Scotland held the largest share of planning approvals (19%), but still saw a 20% year-on-year decline.

Wales bucked the national trend, with project starts rising 280% year on year to £64m (6% share), and Northern Ireland saw sharp growth in planning approvals, rising 11 times year on year to £84m.

The big players

Kier and Morgan Sindall were the top contractors for the period covered in the report, responsible for 71 projects with a combined value of over £1bn.

The top clients were the Department for Education, with 90 projects worth £771m, and the University of Glasgow, with three projects worth £314m.

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