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Glenigan project data reveals that the overall planning development pipeline remains strong. The value of underlying planning approvals during the January to October are 6% up on a year ago, driven in large part by approvals for private housing, industrial and commercial projects.

Recent months, however, have seen a more diverse pattern of approvals emerging. 

The flow of new office projects securing planning approvals slowed sharply in the three months to October, while industrial approvals were little changed on the same period in 2016.  Both sectors have grown rapidly over the last three years and some retrenchment was anticipated. In addition the sectors have been adversely impacted as heightened political and economic uncertainty has prompted private investors sectors to reappraise or defer investment decisions.

In contrast, the flow of private residential has continued to rise. Glenigan recorded an 11% year on year rise in planning approvals during the three months to October. 

Government funded areas, social housing, education and health, have all seen a recent weakening in planning approvals. The declines reflect the tight public sector funding strategy confirmed by the Government after the general election. The new administration has promised some relaxation of the Government’s fiscal targets.  The Autumn Statement on 23 November may reveal whether additional funding will be available for capital projects and if so when and where the funds may be released.

Planning Approvals to October 2016

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