Glenigan data reveals strong development pipeline

Glenigan data reveals that the construction industry has a fast-growing pipeline of residential and non-residential projects that promises to sustain industry activity over the coming year. The value of projects securing planning consent during the first four months of 2017 was 16% up on the same period a year ago.The sharpest increases in planning approvals have been for health, retail and hotel & leisure projects. The expanding pipeline of hotel & leisure projects reflects continued investor confidence as Sterling’s depreciation over the last year helps to boost the UK’s attractiveness as a tourist destination and UK households opt to holiday in the UK. The sharpest increases in planning approvals have been for health, retail and hotel & leisure projects. The expanding pipeline of hotel & leisure projects reflects continued investor confidence as Sterling’s depreciation over the last year helps to boost the UK’s attractiveness as a tourist destination and UK households opt to holiday in the UK. At first glance, the 36% rise in the value of retail approvals appears more surprising given the continued pressure on retailers’ margins and the growing share of retail spending taken by on-line sales. However, the divide between on-line and high street purchases is becoming increasingly blurred, with the growth of ‘click & collect’. The rise in approvals in part reflects retailers’ and landlords’ response to the nation’s evolving shopping habits, with businesses investing in upgrading and adapting their premises in order to retain footfall and competitiveness. At first glance, the 36% rise in the value of retail approvals appears more surprising given the continued pressure on retailers’ margins and the growing share of retail spending taken by on-line sales. However, the divide between on-line and high street purchases is becoming increasingly blurred, with the growth of ‘click & collect’. The rise in approvals in part reflects retailers’ and landlords’ response to the nation’s evolving shopping habits, with businesses investing in upgrading and adapting their premises in order to retain footfall and competitiveness. The rise in of residential planning approvals is also encouraging. The value of private housing projects securing planning approval during the first four months of 2017 was 18% up on a year ago. The latest Glenigan Index recorded a marked pick-up in private housing project starts during the three months to April, while the NHBC have reported a similar strengthening in the number of private housing units registered by developers to start on site during the first quarter of 2017. The strength of planning approvals during the opening months of the year points to sector activity being sustained over the course of 2017. In addition, there has been a 28% rise in the value of social housing approvals. The social housing sector has been buffeted by a number of governmental policy and funding reforms. The rise in approvals suggests that social landlords have begun to adapt planned projects to accommodate the new fund regime.