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, with 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 20% increase last year. Output has also strengthened, rising by 13% in 2013, with a further 12% increase recorded by ONS during 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 and starts of new office schemes.

Confidence in the region is strong. Though the first quarter saw a decline in starts, the latest figures show the region eluding the UK’s widespread post-election stall. Starts rose by 14% during the three months to June, and the development pipeline has also continued to expand.

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