Featured Region: North East

Post-credit crunch the flow of construction starts has until recently remained at low ebb in the north east of England. Indeed the value of underlying starts drifted lower in 2012 and 2013, falling by 3% and 1% respectively. Construction output has shadowed the decline in project starts. New work output fell by 5% and 4% during 2012, although overall output was subsequently buoyed in 2013 by a sharp rise in social new housing activity and housing repair maintenance and improvements works, according to ONS. 

More encouragingly last year saw a strengthening in underlying project starts in the regions as a modest improvement in the value of planning approvals during 2012 and 2013 fed through to work starting on site. The value of underlying project starts rose by an estimated 16.8% last year, with education and social housing being particular hot spots.

The value of detailed planning approvals continued to grow last year, albeit at more modest pace than in 2013. We expect this strengthened development pipeline and the brightening economic outlook to maintain the value of underlying project starts during the current year with modest growth of 3% forecast for 2016.

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