THE number of UK planning applications for new construction projects in key sectors continued to fall in February, new analysis has revealed.
Infrastructure was down 60%, residential fell by 24%, and commercial planning applications decreased by 54%, as uncertainty continues to plague the market.
Analysis by Barbour ABI found the only bright spot to be industrial applications, which increased to £3.7 billion, mainly due to a £2.5 billion battery manufacturing facility at Coventry Airport.
Due to the reduction in infrastructure applications, Scotland struggled in February and was down 59% on January and 38% on the 2024 average at £460 million.
Ed Griffiths, Barbour ABI head of business and client analytics, said, “As expected, the 2025 Spring Statement focused on tackling increased skill shortages with a £625 million investment, housing targets with a £2 billion investment and an intention of increased capital spending, with £13 billion to be spent on infrastructure projects. However, planning application numbers show that construction industry confidence is not where the government needs it to be right now. The economic outlook is challenging with the UK growth forecast halving to 1% and concerns around inflation. Additionally, tariffs from the US could now lead to price volatility, causing more risk to contractors.”
Barbour ABI’s Construction Industry Monthly Snapshot is available to download here.
