Main contract awards and detailed planning approvals fell against the previous quarter and last year. More positively, project starts increased compared to the preceding three months and a year ago.
South East overview
Totalling £4.12bn, work commencing on site in the South East during the three months to June grew 16 per cent against the preceding quarter and 24 per cent up against the previous year. Major project starts (£100m or more) increased 72 per cent against the preceding quarter and 103 per cent against the previous year to total £2.05bn. Totalling £2.07bn, underlying project starts (less than £100m in value) decreased 11 per cent against the preceding three months on a seasonally adjusted (SA) basis and last year.
Adding up to £2.84bn, main contract awards in the South East slipped back 50 per cent to stand 62 per cent lower than a year ago. Major contract awards, at £317m, fell 89 per cent against the previous three months and were 92 per cent down compared with last year’s levels. Underlying contract awards slipped back 22 per cent (SA) against the preceding quarter and were 30 per cent down on the previous year to total £2.53bn.
At £4.01bn, detailed planning approvals in the South East decreased 24 per cent against the preceding quarter to stand 14 per cent down against the previous year. Major project approvals, totalling £910m, fell 57 per cent compared to the preceding quarter and decreased 37 per cent against the previous year. Totalling £3.09bn, underlying approvals slipped back two per cent (SA) against the preceding quarter to stand four per cent down against the same period a year ago.
Sector analysis: project starts
Utilities accounted for the greatest share (45 per cent) of starts in the South East during the three months to June with the value adding up to £1.85bn, thanks to the value having jumped more than 25 times against last year’s levels. Health also experienced a strong period, having increased 234 per cent to total £345m, accounting for an eight per cent share of starts in the region.
Accounting for four per cent, education increased 60 per cent against last year to total £170m. In contrast, accounting for 33 per cent, private housing fell 20 per cent on a year ago to total £1.34bn.
Value of project starts in the South East during the quarter to June 2024 by sector
| Sector | Value of Project Starts (£m) | Change on the previous year | Change on two years ago | %Share |
| Utilities | 1853 | 2585% | 1972% | 45% |
| Private Housing | 1340 | -20% | -16% | 33% |
| Health | 345 | 234% | 80% | 8% |
| Education | 170 | 60% | 18% | 4% |
| Social Housing | 108 | -33% | -77% | 3% |
| Industrial | 100 | -44% | -65% | 2% |
| Offices | 64 | -59% | -80% | 2% |
| Hotel & Leisure | 51 | 11% | 25% | 1% |
| Infrastructure | 46 | -94% | -93% | 1% |
| Retail | 23 | -58% | -66% | 1% |
| Community & Amenity | 22 | -54% | -65% | 1% |
| Total | 4123 | 24% | 4% |
Sector analysis: detailed planning approvals
Private housing accounted for 48 per cent of detailed planning approvals in the South East during the three months to June, making it the most active sector despite the value having decreased 23 per cent against the previous year to total £1.91bn. Accounting for seven per cent, health also experienced a weak period, having decreased 39 per cent on a year ago to total £263m.
In contrast, accounting for a 15 per cent share, offices grew 49 per cent against last year to total £583m. Approvals for industrial projects increased 88 per cent on a year ago, totalling £289m and accounting for a seven per cent share of approvals in the region.
Value of project approvals in the South East during the quarter to June 2024 by sector
| Sector | Value of Project Approvals (£m) | Change on the previous year | Change on two years ago | %Share |
| Private Housing | 1911 | -23% | 47% | 48% |
| Offices | 583 | 49% | 307% | 15% |
| Industrial | 289 | 88% | 14% | 7% |
| Health | 263 | -39% | 91% | 7% |
| Infrastructure | 259 | 353% | -40% | 6% |
| Social Housing | 229 | 7% | 39% | 6% |
| Education | 222 | 30% | 34% | 6% |
| Hotel & Leisure | 111 | -54% | 3% | 3% |
| Retail | 107 | 79% | 54% | 3% |
| Community & Amenity | 17 | 0% | -75% | 0% |
| Utilities | 15 | -97% | -42% | 0% |
| Total | 4006 | -14% | 40% |
Forecast construction starts for the South East
| Underlying project starts (£m) | Change on the previous year | |
| Quarter 1, 2023 | 2,650 | -7% |
| Quarter 2, 2023 | 2,315 | -23% |
| Quarter 3, 2023 | 2,326 | 10% |
| Quarter 4, 2023 | 2,099 | -3% |
| Quarter 1, 2024p | 2,373 | -10% |
| Quarter 2, 2024f | 2,070 | -11% |
| Quarter 3, 2024f | 2,654 | 14% |
| Quarter 4, 2024f | 2,642 | 26% |
| Quarter 1, 2025f | 3,254 | 37% |
| Quarter 2, 2025f | 2,882 | 39% |
| Quarter 3, 2025f | 2,670 | 1% |
| Quarter 4, 2025f | 2,531 | -4% |
