Activity in the healthcare construction sector picked up in the first three months of this year, with project starts, main contract awards, and detailed planning approvals all up compared to the previous quarter.

Glenigan’s April Construction Review reveals starts on site increased by 41% against the preceding three months, while there was a 28% increase in main contract awards, and a 23% increase in detailed planning approvals.

However, despite this strong performance, all three measures were lower than a year ago.

The rise in contract awards and approvals bodes well for sector activity over the next 12 months.

And the Spring Statement in March also confirmed a substantial 15.2% increase in capital funding for the Department of Health and Social Care during 2025/26 to £13.6bn.

Types of projects

According to the report, hospital starts were the only segment to experience growth against the previous year, accounting for the largest share (62%), having grown 5% year on year to total £809m. •

Totalling £53m, the value of dental, health, and veterinary centres/ surgeries starting on site decreased 73% on a year ago

And nursing homes and hospices experienced a 56% decline against the previous year.

Regional figures

Northern Ireland, with £417m worth of project starts, was the most-active region, accounting for 32% of the total, and an increase of 723% against the previous year.

Growth in the area was boosted by the £389m Belfast Royal Victoria Hospital project.

The East Midlands, at £109m, also experienced a strong period, more than tripling against the previous year (+263%) to account for 8% of the total value.

And there was a 30% jump in the value of planning approvals, boosted the development pipeline in the South West, with the region accounting for the largest share of approvals (22%) during the quarter.

The top three contractors were Laing O’Rourke (two projects worth £890m), Royal BAM (seven projects worth £268m), and Winvic (one projects worth £250m).

The leading clients were the Department of Health and Social Care (163 projects worth £2bn), Cons and Procurement (three projects worth £206m), and Tritax (one project worth £125m).