1% predicted increase in healthcare construction activity in 2025
Construction projects starting on site in the healthcare sector are set to increase by 1% during 2025, according to the latest Glenigan Construction Review, published earlier this month.
And increased capital funding could help to revive the market after a mixed performance throughout 2024.
The special report – reviewing activity in 2024 against predicted market trends for the coming year – reveals that health work starting on site totalled £4.8bn last year, an 18% increase year on year.
Major projects (worth £100m or more) surged by 63% to £1.3bn, while underlying project starts (less than £100m in value) grew 7% to £3.5bn.
Main contract awards decreased by 15% year on year to £4.3bn; underlying awards fell 5% to £3.1bn; and major awards dropped 32% to £1.2bnon.
But detailed planning approvals – often an indicator of activity going forward – fell significantly, totalling £6bn, a 34% decline from the previous year.
And major project approvals decreased by 47% to £2.5bn, while underlying approvals dropped 18% to £3.4bn.

Hospitals remained the dominant in 2024
Activity by sector
Hospitals remained the dominant segment, accounting for 41% of health project starts in 2024.
The segment grew 9% year on year to total £2bn.
Nursing homes accounted for 17% of project starts, with a total value of £822m, a 25% increase on the previous year; while dental, health, and veterinary projects saw a 24% rise in starts, totalling £570m and representing 12% of the sector.
Day centres, though an insignificant share, experienced strong growth, with project starts totalling £15m – more than seven times higher than 2023 levels.

The South East led health project starts last year
Countrywide variations
The South East led health project starts in 2024, accounting for 24% of the total sector at £1.2bn, up 2% year on year.
London represented 20% of project starts, totalling £973m, an 83% increase compared to 2023.
And the South West also performed well, growing 66% to £549m and accounting for 11% of the sector.
Wales saw a notable performance, with project starts more than tripling year on year to £438m, representing 9% of the sector.
In contrast, the East of England fell 5%, accounting for 8% of sector starts at £367m.
In detailed planning approvals, the East of England was the most-active region, with approvals jumping 150% year on year to £1.8bn, accounting for 31% of the sector.
The South West saw a 67% increase in approvals to £599m, a 10% share of health consents; and approvals in London also grew by 90%, totalling £532m and representing 9% of the sector.
Conversely, the South East experienced a 47% decline in approvals, totalling £904m (15% share) and approvals in Scotland dropped 84% to £756m, accounting for 12% of the sector.

The report also reveals the most-active contractors and clients in the healthcare market
Looking ahead
In 2025, the report predicts:
- 1% forecasted growth for health construction starts
- The £215m development of the Cambridge Children’s Hospital is set to kick off this year
- Increased funding set to help drive health construction starts