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UK construction activity May 2024: Scotland | Construction News
Project-starts, main contract awards and detailed planning approvals decreased against the previous year and preceding three months., painting a poor period for the area.
Scotland overview
Totalling £1.24bn, work starting on-site in Scotland decreased 29 per cent during the three months to May and remained 48 per cent lower than a year ago. Underlying project-starts (less than £100m in value) decreased 35 per cent against the preceding three months on a seasonally adjusted (SA) and remained 33 per cent below the previous year. Major projects (£100m or more) totalled £200m during the period, down 23 per cent on the preceding three months and 76 per cent previous year.
Main contract awards in Scotland added up to £1.89bn, 52 per cent lower compared with the preceding three months to stand 30 per cent down on a year ago. Underlying contract awards, at £1.25bn, decreased 24 per cent against preceding three months (SA) and fell 36 per cent against the previous year. Major contract awards totalled £638m during the period, a 71 per cent decrease against the preceding three months and 15 per cent down on a year ago.
Adding up to £2.53bn, detailed planning approvals in Scotland decreased 7 per cent against the preceding three months to stand 5 per cent down against the previous year. Major approvals decreased 7 per cent against the preceding three months and remained 11 per cent below the previous year to total £654m. Underlying project approvals declined 12 per cent (SA) against the preceding three months to stand 3 per cent down on a year ago totalling £1.88bn.
Sector analysis: project starts
Private Housing was the most active sector in Scotland for project-starts during the three months to May, accounting for 33 per cent of the total value. The sector experienced a 49 per cent decrease against the previous year to total £411m. Industrial at £10m experienced the sharpest decrease of any sector (-91 per cent) to account for one per cent of the total value.
Elsewhere, hotel and leisure performed relatively well, with the sector experiencing a 20 per cent increase against the previous year to total £91m. The sector accounted for seven per cent of the total value. Community and amenity at £36m experienced the sharpest increase of any sector, increasing 804 per cent against 2023 levels to account for three per cent of the total value.
Value of project starts in Scotland during the three months to May 2024 by sector
| Sector | Value of Project-Starts (£m) | Change on previous year | Change on two years ago | %Share |
| Private Housing | 411 | -49% | -61% | 33% |
| Utilities | 242 | -55% | -4% | 20% |
| Social Housing | 216 | -11% | -41% | 17% |
| Hotel & Leisure | 91 | 20% | 27% | 7% |
| Education | 89 | -40% | -4% | 7% |
| Infrastructure | 58 | -82% | -26% | 5% |
| Retail | 39 | 11% | -19% | 3% |
| Health | 36 | -54% | 98% | 3% |
| Community & Amenity | 36 | 804% | -61% | 3% |
| Industrial | 10 | -91% | -88% | 1% |
| Offices | 10 | -61% | -84% | 1% |
| Total | 1239 | -48% | -44% |
Sector analysis: detailed planning approvals
Private housing accounted for the greatest proportion of detailed planning approvals (36 per cent) during the three months to May with the value adding up to £911m. Private housing approvals declined 33 per cent against the previous year. Elsewhere, social housing at £325m fared better, with the sector experiencing a 14 per cent increase against the previous year to account for 13 per cent of the total value.
Utilities at £682m experienced a strong period, with the sector experiencing 456 per cent growth against last year’s levels to account for 27 per cent of the total value, the second highest in the region.
Value of project approvals in Scotland during the three months to May 2024 by sector
| Sector | Value of Project-Approvals (£m) | Change on previous year | Change on two years ago | %Share |
| Private Housing | 911 | -33% | 3% | 36% |
| Utilities | 682 | 456% | 1658% | 27% |
| Social Housing | 325 | 14% | 51% | 13% |
| Industrial | 186 | -56% | 31% | 7% |
| Education | 122 | -50% | -53% | 5% |
| Hotel & Leisure | 100 | 50% | -17% | 4% |
| Retail | 90 | 74% | -29% | 4% |
| Infrastructure | 62 | 78% | 28% | 2% |
| Offices | 32 | -37% | -34% | 1% |
| Community & Amenity | 15 | 15% | -62% | 1% |
| Health | 9 | -57% | -77% | 0% |
| Total | 2534 | -5% | 30% |
Forecast construction starts for Scotland
| Underlying project-starts (£m) | Change on previous year | |
| Quarter 1, 2023 | 1,801 | 9% |
| Quarter 2, 2023 | 1,421 | -20% |
| Quarter 3, 2023 | 1,725 | 11% |
| Quarter 4, 2023 | 1,269 | 0% |
| Quarter 1, 2024 p | 1,466 | -19% |
| Quarter 2, 2024 f | 1,252 | -12% |
| Quarter 3, 2024 f | 1,647 | -5% |
| Quarter 4, 2024 f | 1,643 | 29% |
| Quarter 1, 2025 f | 2,006 | 37% |
| Quarter 2, 2025 f | 1,787 | 43% |
| Quarter 3, 2025 f | 1,689 | 3% |
| Quarter 4, 2025 f | 1,512 | -8% |
Note: Underlying projects are schemes with a construction value of £250,000 to £100m. Forecast updated in June 2024 p – provisional, f – forecast. Source: Glenigan
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