The Regional Construction Hotspots in Great Britain 2025 report, published by Barbour ABI and the Construction Products Association (CPA), identifies ‘hotspots’ and ‘coldspots’ for construction contract awards at a regional level. These pockets of growth or contraction over the next 6–24 months across the residential, infrastructure and commercial sectors signal near-term trends in construction that aren’t always reflected in data at a national level.
Across Great Britain, total contract awards rose by 13.1% in 2024. It is forecast that there will be clear hotspots for upcoming construction activity over the next 6–24 months in Great Britain, with hotspots outnumbering coldspots by two-to-one overall and seven-to-one for infrastructure, which continues the trend of infrastructure driving hotspot activity seen in previous reports. However, regional performance varied sharply, with growth rates ranging from +1,946% to -95%, underscoring significant disparities between areas and sectors.
In contrast, the residential sector showed a more balanced picture, with an equal number of hotspots and coldspots. This reflects continued weakness in the housing market and subdued levels of housebuilding that persisted into early 2024. Activity began to stabilise only after the Bank of England started reducing interest rates. Residential coldspots were most concentrated in higher-priced regions – London, the East of England, and the South East – where affordability pressures and higher mortgage repayments weighed heavily on demand.
Notably, no broad hotspots emerged in 2024 – defined as areas with above-average contract awards across residential, commercial, and infrastructure sectors. Instead, most hotspots were single-sector, although a few regions showed strong performance in two sectors.
The report also highlights the influence of wider economic conditions on contract awards. Rising project costs, higher financing rates, and delays in progressing large projects initially approved between 2020 and 2022 all shaped the 2024 results. Contract values are also likely inflated by ongoing construction cost inflation and project re-tendering to reflect current market prices. With uncertainty still a key risk factor, the report warns that delays between contract awards and project starts may lengthen, and the risk of stalling or cancellations remains present.
Despite these challenges, the geographic distribution of hotspots paints a generally positive picture. Hotspots outnumbered coldspots in every region except Wales, with the highest concentrations in Scotland, the East of England, and the South East. Construction coldspots were relatively rare—just one in the West Midlands, and two each in the North East, Yorkshire and the Humber, the East Midlands, and Wales.
For more detailed regional data and analysis, refer to the full Regional Construction Hotspots in Great Britain 2025 report.
www.constructionproductsassociation.org.uk
www.store.barbour-abi.com
