But group warns supply and price of materials may put brakes on momentum
The amount of work starting in the spring was up 5% on the previous quarter, new research from information provider Glenigan says today.
In its latest Construction Review, the firm said the average value of jobs starting on site in the three months to the end of May was £5.395m.
The rise was 49% up on the whole of 2020 while the value of major projects starting on site during the period rose by 7% against the previous three months.
Meanwhile, the value of contract awards rose 8% against the preceding three months to stand 77% up on a year ago and 8% above the same period in 2019.
And the value of underlying detailed planning approvals grew as well rising by 8% against the preceding three months, which was seasonally adjusted, to stand 39% up on a year ago.
Glenigan economics director Allan Wilen said construction growth was heading back to the levels seen before covid-19 struck last spring but he warned: “Supply and cost of materials may dampen the pace of growth across the sector. Further progress will be needed over the summer to bring construction activity back to pre-pandemic levels.”
Most sectors and regions achieved strong growth during the three months to May against the same period last year with Yorkshire & Humber seeing the strongest growth, rising 44% while the South-west also rose by 40%.
In sectors, the value of residential starts during the three months to May was 91% higher than a year ago but remained 5% lower than the same period in 2019.
Private housing starts rose 31% against the preceding three months and were 122% up on a year ago. Private housing starts were also 1% up on the same period in 2019.
Non-residential project-starts increased 19% against the preceding three months and were 80% up on a year ago but remained 12% down on the same period in 2019.
Retail project-starts performed very strongly, more than doubling against the previous three months and being 190% higher than a year ago. Office starts grew by a quarter to stand 126% up on a year ago, bringing office starts back to within 2% of pre-pandemic levels.
Industrial starts were 47% up on a year ago, but still 17% behind the same period in 2019. Health project-starts were strong, despite slipping back 5% against the preceding three months. The value of starts was 79% higher than a year ago and 8% up on the same period in 2019. Education starts also improved, rising 6% against the preceding three months to stand 79% against a year ago.
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