Construction contract awards remain buoyant but residential struggles
Following a strong start to the year, the value of new orders in construction eased slightly in February to £7.6bn – 10% down on January – Barbour ABI’s monthly industry Snapshot reveals.
Infrastructure, however, was up 76% month-on-month, the north west leading the way with £1.3bn in awards, including a hydrogen plant at Stanlow and a big project to improve traffic flow at Junction 18 of the M60.
A £1.2bn investment in the Port Talbot Steelworks Furnace fuels further growth too.
In London, large office developments helped the commercial and retail sector reach £1bn in awards while there has been a notable shift in healthcare this month – planning approvals are up 253%, with over half related to investment in Dorset County Hospital.
Barbour ABI’s chief analyst Ed Griffiths said: “Despite a fall in February awards, the improvement in 2025 continues, being 18% up on the same period in 2024.
“Infrastructure remains a bright spot with continued government focus on renewables and clean energy pointing to continued growth in this sector. The Spring Statement will be interesting to see if any "big ticket" infrastructure schemes are announced by Rachel Reeves.”
[edit] Skills shortages and regulatory delays
Mr Griffiths said the new planning reform bill “promised to speed up the planning system and get Britain building,” but he added: “planning delay are only one hurdle … viability and demand for new houses, skill shortages, fluctuations in material costs – all will have an impact.”
Barbour ABI’s February Snapshot reveals that residential fell back 45% to £1.4bn after a bounce in January. Approvals were down this month, falling 41% to £2.32bn, the lowest it has been in over a year.
Commercial and retail comes came back strongly after a subdued January with large office developments in London helping the sector reach £1bn in awards.
Regionally, the West Midlands continue to experience poor development with February down 50% on last month and the 2024 average. The East Midlands, on the other hand, has benefitted from the numerous solar and battery projects approved this month raising its approval value to £1.7bn.
While planning approval value has decreased by 19% in February to £8.5bn, it is still above the 2024 average.
Featured articles and news
Design and construction industry podcasts
Professional development, practice, the pandemic, platforms and podcasts. Have we missed anything?
C20 Society; Buildings at Risk List 2025
10 more buildings published with updates on the past decade of buildings featured.
Boiler Upgrade Scheme and certifications consultation
Summary of government consultation, closing 11 June 2025.
Deputy editor of AT, Tim Fraser, discusses the newly formed society with its current chair, Chris Halligan MCIAT.
Barratt Lo-E passivhaus standard homes planned enmasse
With an initial 728 Lo-E homes across two sites and many more planned for the future.
Government urged to uphold Warm Homes commitment
ECA and industry bodies write to Government concerning its 13.2 billion Warm Homes manifesto commitment.
From project managers to rising stars, sustainability pioneers and more.
Places of Worship in Britain and Ireland, 1929-1990. Book review.
The emancipation of women in art.
Call for independent National Grenfell oversight mechanism
MHCLG share findings of Building Safety Inquiry in letter to Secretary of State and Minister for Building Safety.
The Architectural Technology Awards
AT Awards now open for this the sixth decade of CIAT.
50th Golden anniversary ECA Edmundson awards
Deadline for submissions Friday 30 May 2025.
The benefits of precast, off-site foundation systems
Top ten benefits of this notable innovation.
Encouraging individuals to take action saving water at home, work, and in their communities.
Takes a community to support mental health and wellbeing
The why of becoming a Mental Health Instructor explained.
Mental health awareness week 13-18 May
The theme is communities, they can provide a sense of belonging, safety, support in hard times, and a sense purpose.
Mental health support on the rise but workers still struggling
CIOB Understanding Mental Health in the Built Environment 2025 shows.
Design and construction material libraries
Material, sample, product or detail libraries a key component of any architectural design practice.