精东影视

Deloitte has blamed cost inflation and increasing regulatory complexity for a slowdown in construction starts in four regional cities.

Just 47 schemes broke ground last year in Birmingham, Belfast, Leeds and Manchester, compared to 63 in 2023, according to the consultant鈥檚 latest regional crane survey.

Ongoing activity has remained strong, with 130 schemes under construction across the four cities, although both housing and commercial activity fell.

Office schemes have seen a marked decline, falling by 17% compared to the previous year and no newbuild projects starting, with all new schemes being refurbishments.

The number of ongoing residential schemes fell by 7% after four consecutive annual increases, with 23,700 homes under construction in 2024 compared to 25,400 in 2023.

But appetite for student accommodation remains robust with the number of bed spaces under construction rising by 2% 20 8,700.

Of the 47 new starts, 22 were in the residential sector, 11 were offices, nine were student housing schemes, and three were hotels.

Deloitte partner John Cooper said the 鈥渃lear reduction鈥� in the number of new schemes breaking ground reflected increased nervousness among investors due to a challenging economic and geopolitical backdrop.

But he said Deloitte expects developers and construction firms to rally in the year ahead, although he said he did not 鈥渆xpect levels of new developments to immediately rebound鈥�.

Although the report found levels of ongoing work remained helathy, added regulatory burdens could have played a role in dampening confidence, according to Deloitte partner Zoe Davidson.

鈥淚t鈥檚 important to note that measures such as the 精东影视 Safety Act, which, while essential, have added complexity and lengthened timelines for the delivery of residential projects,鈥� she said.

Manchester has continued to lead the way in new construction starts, with 20 of the 47 new starts located in the city, although this is the third annual fall and the lowest number since 2014.

In Birmingham, the total of 11 starts was the lowest number since 2020, despite the survey expanding its boundary to align with the city council鈥檚 new definition of the city centre.