Featured Sector: Health

The underlying value of health starts has been on a downward trajectory this year, and starts in the three months to September were down 36% on a year ago. This followed a 17% drop in the value of projects securing detailed planning approval during 2012. 

Glenigan recorded a 7% rise in the value of underlying project starts last year, with private sector activity such as nursing homes pushing the data into positive territory. The drop in project starts seen this year has been due to a fall in hospital starts, the largest sub-sector, and health centres. However other areas remain positive; research and laboratories starts have increased by 24% so far this year, and nursing homes saw a 3% rise.

Glenigan recorded a 26% rise in detailed planning approvals during the first six months of this year; we expect this to help lift starts during the final quarter of the year. However this is expected to be short-lived. The last three months has seen the value of planning approvals decline by 23% and NHS funding remains constrained.

Despite the contraction in underlying hospital work, two major hospital projects have started on site this year. These are the £167million children’s health park in Liverpool and the £243million second phase of Ulster Hospital.