Featured Region: North West

Construction activity in the North West has been gathering momentum over the last two years, with firm growth in output, new project starts and detailed planning approvals. The value of detailed planning approvals granted leapt 31% in 2013, a further 5% rise last year. The strengthening development pipeline has fed through to an increase in work on-site. The value of underlying project starts rose by 10% in 2013 with the pace of growth accelerating to a 15% increase last year. Output has also strengthened, rising by 13% in 2013, with a further 13% increase recorded by ONS during the first nine months of 2014.

Manchester is increasingly being seen as the UK’s second city in terms of investment into commercial space, and its reputation is being bolstered by high profile schemes such as Manchester Airport City. James Lang LaSalle report that, in line with the other Big 6 cities, the vacancy rate for Grade A office space has fallen below 2%. This has prompted an increase in detailed planning approvals for new office space.

Liverpool has weathered the recession relatively well, with a strong private sector replacing jobs lost in the public sector. Construction activity stabilised in 2012 before turning around during 2013. The last year has seen the upturn in project starts gather momentum with further growth forecast for next year and into 2016.

The North West consists of the following Counties: Cheshire, Cumbria, Greater Manchester, Lancashire, Merseyside, Isle of Man.

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