Pace of construction in Yorkshire & Humberside picking up

Source: Whittam/Cox Architects

Construction in Yorkshire & Humberside was the second best-performing region in the first quarter of 2018 with the value of underlying construction starts up 47% on the period a year earlier.

The construction sales pipeline for work in the region also looks healthy. After a 12% rise in the value of construction project starts in 2017 on the previous year, Glenigan is forecasting a further 16% rise in the value of projects starts in Yorkshire & Humberside this year.

Overall Glenigan’s construction market analysis shows that the value of underlying planning approvals in Yorkshire & Humberside rose by 19% in 2017, compared to the previous year with healthy increases in approvals for private housing (19%), industrial (16%), hotel & leisure (41%) and retail (85%).

Ambitious schemes

Some ambitious schemes are being planned in large cities across the region. After its success as a city of culture in 2017, Hull is set for further development with work on a major project at Albion Square involving an ice rink, luxury flats and a 100-bed hotel, set to start this year. Glenigan’s construction market analysis shows that the £20 million scheme for Hull City Council is at the pre-tender stage (Glenigan project id. 17325557). Meanwhile, construction work on the city’s maritime project which will transform three historic sites, is also set to start this year.

The leisure construction sector should also receive a boost in the south of the region later this year when work starts on Sheffield United’s new £30.5 million South Stand 2nd tier (Glenigan project id 09267515) which is also currently at the pre-tender stage.

In Leeds, Glenigan construction market analysis highlights plans for a major development on the former Evans Halshaw site in Hunslet Road by X1 Developments which is at the pre-tender stage but where work is set to start in Spring 2020 with £55.9 million of public funding. Overall, the £210 million scheme planned on the site will involve over 900 homes, restaurants, retail units and office space.

Commercial projects

Some significant commercial projects are also due to get underway in the region, including a £5 million data centre for Connexin in Hessel, Humberside, (Glenigan project id 18145847) where construction work is set to start early next year. In the industrial sector, tenders have recently been returned for a £3 million factory extension at Ravensthorpe Mills for Ulster Yarns in Dewsbury in West Yorkshire, with construction work set to start later this summer.

Meanwhile, in the infrastructure sector, around 30 contractors are benefiting as the £1 billion YORCivil 2 framework covering local authority and other civils work across Yorkshire & Humberside generates construction works. Longer term, the eventual arrival of HS2 in Leeds - which has the busiest rail station in the north of England – should provide a further spur to construction contracts as the regeneration of the city gathers momentum.