London also tops the UK for Infrastructure and Hospitality construction contract awards
The Super Sectors report is a monthly examination of Planning Application/Approvals and Contract Awards by sector and region, giving a robust picture of the construction industry across the UK. By examining planning approvals as well as contract awards, the report shines a light on the current and likely short-term future of the industry in each region. The March edition has just been launched and highlights some positive trends in the construction industry in London.
In total, the value of Commercial & Retail contracts awarded was £805m in March. Projects in the sector valued at £506m were granted planning approval.
The redevelopment of 105 Victoria Street into a development of offices, commercial and retail units, leisure space, communal gardens and bicycle parking facilities was largest Commercial & Retail contract approved. Valued at £235m, the project is expected to begin in third quarter of this year and finish in the second quarter of 2026.
The Residential construction sector is also looking very healthy in London. Contracts valued at £637m were awarded and planning applications valued at £942m were approved in March, indicating a strongly positive pipeline for the sector.
Infrastructure construction also had a very positive month in terms of contracts awarded in London in March. The largest individual project is the North London Heat & Power Project in Edmonton. Valued at £685m, this project is for the construction and commissioning of the Energy Recovery Facility. Work is due to begin in the fourth quarter of 2022 and be completed in the second quarter of 2026.
The second largest individual project is the redevelopment of the Fleet Street Estate, known as the Salisbury Square Development. The project will include a new state of the art Court and City of London Police HQ. The project, which is already underway, is expected to be completed in Sep 2026 and is valued at £295m.
Tom Hall, Chief Economist at Barbour ABI said: “Construction in London is booming in a number of sectors. Residential, infrastructure, hospitality and commercial & retail construction are all looking buoyant in the short and medium term, with healthy pipelines of activity on the horizon. There is no industry sector that is currently of concern in London, with all sectors above or roughly equal to the average for the UK.”