Construction Activity In London Stays Resilient
Data from Barbour ABI suggests that London outperforms other UK regions regarding Residential, Commercial, Industrial, and Hotel construction activity.
The Super Sectors report by Barbour ABI analyses planning approvals and contract awards by construction sectors and regions, giving a complete picture of the construction industry across the country.
This analysis helps understand the current settings and predict the short-term trends for the market in each region.
In particular, the June edition outlines several positive trends for the London construction sector.
Construction Trends In London June 2022
June 2022 saw London outperform other UK regions regarding construction activity. For instance, the capital saw a total of £622m of residential contacts awarded in June, £400m+ above Scotland, which came second. Residential planning approvals in London were also high, with the numbers reaching £416m.
According to the report, London outranked other regions regarding the Commercial and Retail contracts awarded, with values hitting £159m in June.
However, the settings are not promising in the mid-term perspective, as the planning application reached just £30m, putting London behind several other UK regions.
As for the Hotel and Leisure construction, the capital outperformed other regions, with the total value of contracts awarded hitting £158m and £80m, accordingly.
Barbour ABI highlights the resilience of the London construction sector in June. However, the long-term picture does not look as promising because the planning approvals were low in almost every construction sector.
The only exception is the residential sector which saw £416m of projects receive planning approval in June 2022. Now, it is critical to monitor the industry to see how the picture develops in the coming months.