Rise in number of projects on hold

The number of projects put on hold continued to climb during the first quarter of 2017. At 689, the number of projects put on hold during the quarter was 44% up on a year ago, according to Glenigan data. The increase follows a progressive rise in projects going on hold during the course of last year. The data covers projects with planning approval (where required).

Whilst the number of projects has risen, at £2,200 million the collective value of the projects put on hold during the quarter was 14% down on the final quarter of 2016, although it was still 11% up on a year ago.

The number of office and industrial projects placed on hold rose during the second half of last year as investors re-appraised their projects potential viability in light of the referendum vote. This process appears to be stabilising with a similar numbers of office and industrial projects being placed on hold in the first quarter of this year.

In contrast the number of private residential schemes being placed on hold has continued to climb. At 170 the number of private residential projects put on hold was 35% up on the final three months of 2016.

Strikingly, however, the sharpest increase in projects being placed on hold during the first quarter was in government funded areas. The number of education projects put on hold was 70% higher than a year ago, while the number of health projects more than doubled to 55. There has also been a sharp rise in social housing projects being placed on hold. This suggests that government policy and funding issues, rather than wider economic concerns, have been factors behind the latest rise in projects being placed on hold.