The JLL and Glenigan UK commercial construction activity index Q1 2019

The JLL and Glenigan quarterly UK Commercial Construction Activity Index provides an overview of commercial construction activity across the UK, highlighting the volume of total construction and new starts in different regions and across different sectors.

Commercial Construction starts in Q1 2019 fell for the first time since Q2 2017.

Despite persistent growth in recent quarters, the total value of construction starts remains below historic levels – at around 15% lower than the average over the last decade.

JLL and Glenigan’s research teams’ business intelligence report provides a clear summary of the volume of UK Construction new builds and fit-out starts across the UK in Q1 2019. 

Sector dynamics

Benchmarking a variety of sectors including: Community, Education, Hotel, Healthcare, Office, Retail and Industrial, the report shows the trends up and down across the whole of the UK.  The value of starts in the Office sector was up 7.5%, while Industrials construction rose by 7.4%.  Retail construction starts grew by 12.3% but Hotel and Education fell back strongly.

The picture across the UK

The fall in value of construction starts over the last 12 months was principally due to lower levels of activity in Scotland, where the value of starts fell to £1.3billion.  This was mainly because of activity in Scotland being buoyed by 2018 developments worth a combined value of £1.6 billion.  In London and the South East, the value of starts continued to grow – up 15.6% on the previous quarter and 29% on Q1 2018.

Firms report that ongoing Brexit uncertainty and the weakening economic outlook has meant many clients have delayed major spending decisions.  This will continue to be a factor in Q2.