London construction outlook strengthens

According to Glenigan data, construction prospects in London are improving as activity picks up across several major development areas.

After some lean years, Glenigan project intelligence shows that the industry’s workload in the capital is rising, supported by progress on major public and private mixed‑use schemes, renewed momentum in office and data centre development, and a growing pipeline of infrastructure projects.

The latest Glenigan Index reports that London was the strongest‑performing UK region during the December to February period. The value of underlying project starts under £100 million, increased by 29% compared with the previous three months and stands 30% higher than a year earlier.

A series of major mixed‑use and regeneration developments is expected to bolster construction activity further in the capital, according to Glenigan data.

In west London, work on the huge Earls Court redevelopment is due to start later this year. Planning approval was granted for the £219 million phase 1 of the scheme before Christmas, involving up to 204,000 sq m of floorspace for some 1,090 homes, a hotel, offices, and other uses (Project ID: 24286543). It forms part of what is envisaged to eventually be a £10 billion project that will create around 4,000 homes, new workspace, and other facilities.

At another major regeneration site, Brent Cross in north west London, work is due to start this summer and JJ Rhatigan & Co. has been appointed main contractor on a £147 million purpose-built student accommodation scheme with commercial space for Fusion Group (Project ID: 24238548).

Elsewhere in Brent Cross, reserved matters have been granted on Halycon Developments’ £61.6 million scheme to build 352 co-living units with commercial space at (Project ID: 24247777)

In the commercial sector, Glenigan data indicates that data centres are providing a continuing source of new orders for contractors. A preferred bidder has been appointed, and work is due to start early this summer on a £100 million extension at Pure Data Centres’ facility at Brent Cross (Project ID: 22210304).

Meanwhile, a local development order has been granted on the huge £1.22 billion London Data Freeport in East Havering, a 600MW data centre involving up to 390,000 sq m across 12 buildings, where work is set to start later this year (Project ID: 22405932).

Major office towers

According to Glenigan project intelligence, construction is also set to start on some major office towers in the City of London. Plans were approved last month for Brookfield Developments’ new £477 million scheme at 99 Bishopsgate, involving 53 storeys of office space with market hall space on the ground floor. Multiplex Construction Europe is the construction advisor on the scheme where work is due to start this autumn. (Project ID: 23331236).

Across the square mile at the London Stock Exchange in Paternoster Square, Bovis has recently been appointed construction manager on a £200 million office refurbishment/ extension where work is due to start later this year on a scheme involving almost 2,000 sq m of floorspace (Project ID: 25489163).

North of the City, work on the £700 million British Library Extension is set to get underway this summer. The 72-month project (pictured) will involve over 100,000 sq m of space with Mace Group as the management contractor (Project ID: 15291949).

Meanwhile, in the burgeoning life sciences sector, analysis of Glenigan data shows tenders have been returned, and work is set to start this summer on Imperial College’s £300 million White City Campus – Life Sciences & Deep Tech Development in west London (Project ID: 24330948).

Infrastructure in the pipeline

Some major infrastructure projects in the pipeline should help keep the capital’s civil engineering contractors busy.

A contract notice is due to be published early this summer on the £1.62 billion Docklands Light Railway Extension to Thamesmead, which will include new stations at Beckton Riverside and Riverside and a twin-bore cross-river tunnel. Work is set to start early next year on the scheme, which should also unlock significant new housing development in the area (Project ID: 23194064).

Meanwhile, preparatory works have finally got underway on the £11 billion Lower Thames Crossing and Approaches, which has been deemed a nationally significant infrastructure project and part of the government’s road investment strategy. The main construction works are set to start in 2028 (Project ID: 91161081).