For the past 18 months, the construction industry has boomed due to the easing of restrictions and projects restarting.
However, this boom has reportedly ended, most likely due to delays in awarding contracts and faltering planning approvals.
This has only been a recent development, as the sector experienced its strongest performance only in March of this year.
Construction insight specialist Barbour ABI said that construction is likely to be entering its “lowest phase of activity”, and has suggested the cost of living crisis has also played a part in the boom slowing down.
The value of contracts awarded between April and May dropped from £1.58bn to £900m – this is the biggest decrease since November 2021. Planning approvals also hit their lowest since September 2021.
Some of the key planning approval areas affected include residential, educational and leisure.
Although this may seem like a concern for the industry, being as construction almost ground to a halt during the height of the pandemic, it was unlikely to be continuously sustained in the aftermath of restrictions.
Plus, there are lots of exciting construction projects taking place currently – you can read about some of these on our social media, including the latest HS2 developments.
We hope that the boom does not completely stop, but in the meantime, we hope the value of some of the UK’s current projects make up for this.