NuGen Properties

Construction project starts slump to covid levels

Glenigan’s analysis indicates a 48% fall in construction project starts in the fourth quarter of 2022 compared to the third quarter. They were also 20% down on 2021’s fourth quarter.

This overall drop in activity was also reflected in main contract awards, which dropped 18% against Q3, and 23% against 2021 levels.

However, some hope was to be found in a modest increase in detailed planning approvals, up 2% against the preceding three months, and 5% higher than the same period in 2021. Glenigan says that this indicates a lean first half for 2023 followed by a gradual recovery in the second half of 2023 – potentially, at least.

Major project starts – projects valued at more than £100m –have previously accounted for an uptick in sector activity but fell dramatically in Q4 2022, dropping 80% on the previous quarter and 55% compared to 2021. Project starts worth below £100m had a less pronounced decline, dipping 6% during Q4 and only 7% on the previous year.

However awards of sub-£100m contracts were down 26% on both the previous quarter and year-on-year. Major contract awards declined 19% compared to Q3 and 14% compared to 2021 levels.

Glenigan economics director Allan Wilen said: “The sector is still getting to grips with a very hostile economic climate. Prices continue to rise and access to skilled labour is falling, combine this with dented consumer and investor confidence and you have an unpleasant cocktail of challenging circumstances. It’s set to be a tough six months, requiring contractors and developers to be particularly agile and flexible to capture share in distinctly bearish markets.”

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Dan Morten 18/01/22

Easy to work with, Jordan and the team were professional and were easy to communicate with.
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Di Hayes 20/08/22

NuGen Properties built an extension to the rear of my property, replacing the old conservatory. I am so pleased I chose this company. From the initial quotation, through the build and after they were professional, polite & well mannered. They kept the site tidy throughout the build and kept me informed of each stage as it happened. The work was finished to a good standard and I have had nothing but compliments on their work. I am already planning for them to come back and do some more work for me in a few months. I would 100% recommend them.

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