Featured Region: North East

Underlying value of construction projects starting on site. (Excludes individual projects of more than £100 million and framework agreements).

The North East of England is suffering from a weak private sector and reductions in government spending. However, the construction industry is seeing modest improvements in the level of work coming through the development pipeline.

Business activity has been reduced of late, and hit a 37 month low in July according to the Lloyds TSB PMI, things have since picked up but the economic prospects for the region remain subdued even by current UK standards. House prices have been falling too, and the average price is in the North East is the lowest anywhere around England according to the Land Registry.

However, Glenigan have tracked increases in planning approvals and the value of contracts awarded this year. After the value of starts has tentatively improved since what looks to have been the bottom of the market, we expect further modest improvements over the next eighteen months. We estimate that starts will be up by 9% for the full year 2012 and that activity will drop off again slightly in 2013.

The North East consists of the following Counties:  Cleveland, County Durham, Northumberland, Tyne & Wear.