Construction contract awards totalled £7.18bn in March 2026, according to Barbour ABI (April 2026). The figure was slightly below February's total, but it remained above levels recorded at the end of 2025 and consistent with steady Q1 performance across the sector.
Residential schemes drive Q1 contract volume
Residential construction accounted for £2.57bn of March's contract awards, making it the largest sector by some distance (Barbour ABI, April 2026).
Named schemes give a useful read on the build cost range currently in play. The £148m Penvose Student Village, the £120m Selby Urban Village and the £105m City Link House development in Croydon all completed contract award in the month (Barbour ABI, April 2026). Schemes at that scale represent significant capital commitments. Procurement decisions made at contract award typically lock in the majority of cost exposure for the duration of the programme.
Infrastructure awards added a further £1.52bn in March, underpinned by energy, transport and public sector investment (Barbour ABI, April 2026). That breadth is relevant for residential developers watching contractor availability, as large infrastructure packages compete for the same labour pool.
Ed Griffiths, head of business and client analytics at Barbour ABI, noted that the spread of activity was a positive sign. "What stands out is the breadth of activity across residential, infrastructure and industrial," he said. The data showed projects were still moving forward despite a more uncertain global backdrop.
Planning applications remain stable going into Q2
Planning applications totalled £6.39bn in February 2026, broadly unchanged from the previous month (Barbour ABI, April 2026). The South East, East of England and North West recorded the strongest residential activity. That pattern is consistent with the areas where planning risk (the probability of refusal or significant delay) remains highest, given local authority capacity constraints.
For developers running feasibility appraisals, stability in application volumes means the planning queue is not shortening. The timeline from submission to decision remains the key variable in build programme planning.
Approvals accelerate and shift toward energy infrastructure
Planning approvals told a different story. They rose to £11.7bn in March 2026, maintaining elevated levels seen since the start of the year (Barbour ABI, April 2026). Residential schemes continued to lead, while a notable shift toward nationally significant energy projects was visible in the infrastructure approval data.
For developers with residential schemes currently in the system, a faster conversion from submission to approval shortens the timeline between capital commitment and a viable start on site. This directly affects the cost of carry (the finance charges accumulated while a site sits waiting for planning consent). Developers who priced schemes on 2024 approval assumptions may wish to recheck whether their appraisal still holds at current finance rates.
The Q1 2026 data does not remove uncertainty from geopolitical pressures on material costs and supply chains. But the residential development pipeline is moving, not stalling.
