Where is Construction heading this year?

Construction Grpahic
Image credit: Freepik

The question we are all asking is, where is construction going this year? We’re keeping a close eye on the UK economy, with the latest drop in inflation figures to 3.2% in March, hopefully this is another indicator that the economy is moving in the right direction, given a relatively sluggish start to 2024.

The latest Glenigan Construction Review reported that detailed planning approvals in the period January to March remained flat compared with 2023, and main contact awards were also flat compared with Q4 2023. It also reported a 28% decline in project-starts against 2023 levels.

My expectation, however, is that the much-anticipated fall in interest rates this year will be a positive sign for numerous projects to start, which will slowly improve the construction outlook.

It has been good to see work commencing on our landmark project TRIBECA and we are now looking forward to starting work on Stage 5. It’s also great to see the completion of Power Road Studio 5 which has achieved BREEAM outstanding for its design stage.

As for façade remediation, there are still so many buildings in the UK in urgent need of repair with everyone trying to navigate their way through the Building Safety Act. We look forward to sharing our experience with other industry experts at the next Façade Focus event on June 26th, which will throw a spotlight on this topic. If you would like to register your interest for our next event, please contact Sarah Andrews.