The value of construction work that began in the first quarter of 2021 was 5% higher than the previous year according to data published today by Glenigan (April 6).

The numbers are significant – the research covers developments valued at less than £100m – because the UK did not go into lockdown until March 26, offering further evidence the construction sector has recovered relatively well after the Covid-19 shock.

Regionally the North East led the way with work commencing on-site rising 51% compared to the first three months of 2020 while private housing project-starts performed strongly and climbed 29% against the previous year and 24% against the preceding quarter.

Rhys Gadsby, Glenigan’s Economic Analyst, said: “Project starts have grown strongly despite the UK being in national lockdown for the majority of the first quarter. Starts are at their highest level since September 2019. Private housing experienced a particularly strong period and was the main driver for overall growth, although industrial, offices and retail also achieved strong growth.

“Looking ahead the construction industry and its clients should have greater confidence to move more projects to-site during the second quarter as lockdown measures are progressively eased.”

Other positives include Industrial work jumping 27% year-on-year and 23% against the preceding quarter. Office project-starts also achieved consistent growth, having climbed 8% compared to 2020 and 4% against the previous three months. Retail experienced the greatest increase of 90% against the previous year and 60% compared to the preceding quarter. However, retail project-starts were particularly low during both previous periods.

Utilities project-starts experienced the greatest declines of 15% against the previous year and 54% compared to the preceding quarter. Infrastructure work starting on-site fell 11% compared to a year ago and 12% against the preceding quarter.