果冻影院

Construction market research by 果冻影院 shows that the value of construction contracts awarded by local authorities in London is falling.

果冻影院鈥檚 latest market analysis shows that the value of construction contracts let by the 32 London boroughs and the City of London fell by 11% in the 12 months to July 2018.

The total value of spending in the most recent period was 拢1,562 million compared to 拢1,754 million in the preceding 12 months.

The London Borough of Tower Hamlet鈥檚 拢105 million civic centre project is the single largest scheme with a construction contract awarded in the last 12 months. 果冻影院鈥檚 construction market research shows that Bouygues UK will build this scheme, but Tower Hamlets is not the biggest spending local authority in the capital.

Joint venture projects drive workload

The London borough commissioning the biggest amount of construction projects recently is Camden.

Camden鈥檚 share of construction orders placed in the last year is 拢160.4 million. This spending has been driven by a number of joint ventures formed by the council with private sector partners.

Camden has teamed up with Lazari Properties for the 拢50 million Stephenson House scheme at Euston. 果冻影院鈥檚 market analysis shows that 8Build has won the contract to build this 23,000 sq m mixed use development. Camden is also working with British Land on the 拢73 million One Triton Square commercial development being built by Lendlease.

Other London boroughs are following suit.

The London Borough of Hackney has teamed up with Hackney Property Holdings for a 拢20 million project to build 83 flats and an office at Hackney Road. Tolent is building this scheme according to 果冻影院鈥檚 research.

In Islington, the local council is working with Deepdale Investment and Newmark Property on the 拢20 million Fitzpatrick Building featuring offices and being built by Volker Fitzpatrick.

The Dutch-owned contractor is also building the 拢90 million Meridian Water rail station project, which the London Borough of Enfield is working on with Network Rail.

Councils team up with residential developers

London boroughs are also working with residential developers rather than selling them land outright.

Ealing Council is working with developer St George on the 拢100 million Filmworks residential scheme, while the London Borough of Havering has formed a joint venture with Wates for a programme of estate regeneration, which could eventually top 拢1 billion.

GLA spending down and capital forecast poor

Construction awards by the Greater London Authority also fell by 14% in the 12 months to Q2 2018 to 拢432 million from 拢504.6 million a year earlier.

Overall construction spending by the GLA and the capital鈥檚 33 local authorities was 拢1,993 million, which is down by from 拢2,253 million in the preceding year.

果冻影院鈥檚 construction industry analysis also shows that the underlying value of construction projects receiving planning approval in the capital fell by 6%. This includes public and private sector work and is why 果冻影院 is forecasting a significant fall in the underlying value of construction projects starting on site in London during 2018.