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The East Midlands enjoyed its fourth consecutive year of double-digit growth in 2015.

This growth has been driven largely by increasing private housing activity and, latterly, by a rise in industrial sector projects. Indeed the pace of growth in project starts in the region accelerated last year, rising by 14% during the year as a whole.  

The outlook for the region remains positive, with industrial and private new housing activity expected to remain important drivers for further growth over the next two years.

These two sectors account for a large proportion of construction activity in the region. Geography and good motorway links have long made the region a favourite for retailers and distributors to locate their major distribution centres. The demand for new logistics space is continuing to grow apace as retailers develop their home delivery and ‘click & collect’ services. 

The last three years have already seen rapid growth in private new housing starts in the East Midlands, including a 23% jump in the value of starts last year. Private residential detailed planning approvals rose 10% last year, building on the strong growth seen in 2014 and promising continued sector growth during the coming year.

Our expectations of further growth in the industrial and private housing sectors bodes well for the region. Overall detailed planning approvals in the East Midlands were 16% in the year to February 2016. 

Whilst we anticipate that there may be some near term weakness in project starts after the rapid growth in recent years and as private investors delay starting projects in advance of the EU referendum, the underlying prospects for construction in region remain positive.

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