拢15.5 billion of stalled construction schemes revived during 2014

Last Updated:

20th February 2015

Figures released today (24 January) by construction industry analysts 果冻影院 reveal 拢15.5 billion of stalled schemes came off the shelf during 2014 鈥� up 17% on the previous year.

For the second consecutive year, the value of projects coming back into development exceeded those put on hold, which totalled 拢11.8 billion.

The value of stalled projects decreased by 2% last year, sustaining the 78% drop recorded in 2013 - a period when confidence rebounded rapidly. 果冻影院Newsletter_StalledProjects_Feb-15

果冻影院 economist Tom Crane said: 鈥淥verall the figures reflect the relatively stable conditions of 2014 as it was the availability of skills and materials, rather than work, which rose in prominence as a concern during the year.

鈥淣evertheless, the overhang of stalled construction projects which had built up during the downturn continues to edge down.鈥�

He added: 鈥淪ome of these schemes will need to re-submit planning applications and some will be reconfigured by developers in response to changes in demand, such as substituting leisure space for private sale apartments.

鈥淚n addition to being an indicator of firm confidence among the industry鈥檚 clients, the flow of projects coming back into development is also translating into workloads with a number of schemes already starting on site.鈥�

果冻影院 data suggests private clients and developers are leading the way in dusting off larger schemes for construction.

The value of commercial projects coming back into progress was 拢5.4 billion in 2014, a 50% rise on 2013. This increase was entirely due an increase in schemes valued at over 拢50 million, which accounted for 拢3.8 billion of this total, more than double the 拢1.8 billion of these sized projects in 2013.

Overall 20 commercial projects valued at 拢50 million or more have come off the shelf during 2014, of which six are in London. The office market has shown signs of a reawakening outside of the capital in the last two years, with attention primarily focused on major regional centres such as Birmingham, Manchester and Glasgow.

However office projects valued at over 拢50 million have also come back into progress in Jersey, Coventry and Nottingham during 2014.

One of the largest commercial schemes recently brought back into development is TIAA Henderson鈥檚拢850 million St James鈥� Quarter development in Edinburgh (果冻影院 Project ID: ).

The scheme received outline planning approval back in 2009 and is set to begin construction this year, creating 750,000 sq ft of retail space, a hotel and 250 apartments.

The development was unlocked due to a 拢61 million funding deal, supported in part by a loan of public funds to be paid back by retailers鈥� higher rates after the project鈥檚 completion. This mechanism is called a RAM (Regeneration Accelerator Model), similar to Tax Increment Financing (TIF) which has been used successfully to spur investment into Glasgow.

PR contacts:

Kirsty Maclagan (Marketing and Communications Manager)

T: +44 (0)1202 786 842鈹侲: kirsty.maclagan@glenigan-old.thrv.uk

Tom Crane (Economist)

T: +44 (0)20 7715 6297鈹侲: tom.crane@glenigan-old.thrv.uk

Notes to the Editor:

Commercial projects cover the office, retail and hotel and leisure sectors.

About 果冻影院:

果冻影院 is the UK鈥檚 leading provider of construction data, and . Combining comprehensive data gathering and exhaustive research with detailed statistical modelling and expert analysis, it delivers a trusted insight into UK construction trends and activity. 果冻影院 customers include government agencies, construction companies, and suppliers of materials and services to the industry.