Regional Construction Hotspots in Great Britain 2025

The Regional Construction Hotspots in Great Britain 2025 report from Barbour ABI and the Construction Products Association (CPA) provides a regional analysis of construction contract awards to signal near-term trends in construction that aren’t always reflected in data at a national level. By analysing the value of contracts awarded last year in local authority regions across the residential, infrastructure and commercial sectors, the report identifies ‘hotspots’ and ‘coldspots’ as pockets of growth or contraction over the next 6–24 months.

In 2024, total contract awards across Great Britain increased by 13.1%. However, when viewed at a more detailed regional level, growth rates varied dramatically – from as high as +1,946% to as low as -95% – revealing sharp contrasts in regional and sectoral performance.

The report showed that hotspots outnumbered coldspots by two to one, and by seven to one within the infrastructure sector – continuing the pattern seen in previous years, where infrastructure remained the key driver of growth.

In contrast, the residential sector showed an even balance between hotspots and coldspots in 2024. This reflects ongoing weakness in the housing market and subdued housebuilding activity, which hit a low point in late 2023 and early 2024 before the Bank of England began lowering interest rates. Residential coldspots were most common in higher-priced regions – London, the East of England, and the South East – indicating that these areas were most affected by affordability pressures and higher mortgage repayments.

There were no broad hotspots in 2024 – defined as areas where residential, commercial, and infrastructure contract awards were all significantly above long-term averages. Instead, most hotspots were single-sector (limited to one of the three sectors), although several regions did record activity in two sectors.

The report also stresses that the economic backdrop continues to heavily influence contract awards. Factors such as project delays due to cost increases, hesitancy caused by higher financing costs, and the progression of large projects first approved between 2020 and 2022 have all shaped the 2024 figures. Contract award values likely remain elevated due to construction price inflation and the re-tendering of projects to reflect new cost realities. With “uncertainty” still a key risk factor, delays between contract awards and project starts may lengthen, and the risk of stalling or cancellations remains present.

Nevertheless, the geographic spread of hotspots offers a positive outlook. Hotspots outnumbered coldspots in every region except Wales, with the highest concentrations found in Scotland, the East of England, and the South East. Construction coldspots were relatively few, with the lowest numbers in the West Midlands (one), and two each in the North East, Yorkshire and the Humber, the East Midlands, and Wales.

For more insight, including detailed regional data analysis, visit the Regional Construction Hotspots in Great Britain 2025 report.

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