The Regional Construction Hotspots in Great Britain 2025 report, made in partnership between the Construction Products Association (CPA) and Barbour ABI, identifies regions where values are higher or lower than the long-term average – hotspots and coldspots – and offers a forward-looking indication of growth by region and by sector.
London was the UK’s largest regional economy in 2023 (the latest available from the ONS), and the largest region in terms of construction gross value added (GVA) was the South East. The South East’s construction GVA was £24.0 billion, accounting for 15.5% of the UK construction total, while London’s construction GVA at £22.6 billion was the second-largest and accounted for 14.6% of the UK total. However, both these shares were lower than in 2022, with all other regions except the South West and Wales recording an increase in their share of UK construction GVA.
By using ONS regional economic data, the report finds that despite their overall dominance, only three of the top ten largest local authority areas for construction activity in 2023 were in London and the South East: Westminster, West Surrey and Berkshire. However, it is Hertfordshire, in the East of England, that remained as the sub-region with the largest value of construction activity in 2023. Sub-regions in the South West, the East of England, the West Midlands, Yorkshire and the Humber, and East Midlands complete the top ten list, underscoring the fact that there are large areas of activity beyond the traditional engines of growth.
One of the challenges in the report using such granular data is the large lags in reporting of official output data, as evidenced by the most recent macroeconomic data published by the ONS being for. By using data on contract awards in 2024, the report aims to highlight construction work ahead, rather than reporting on activity is past periods that may not be relevant. It also showcases the breadth of variation from a single Great Britain-wide figure of construction performance or contract awards activity. Overall in 2024, total GB contract awards rose 13.1%, but with growth rates ranging between +1946% and -95% when analysing at a considerably more granular regional level, stark differences in regional and sector performance become apparent.
It is important to note that the economic backdrop will be a major driver and influence on contract awards – from delays in tendering due to cost rises or project adjustments, hesitancy to proceed when financing costs have increased, to large projects initially approved in 2020, 2021 and 2022 now reaching go-ahead and contract award. The value of contract awards in 2024 is still likely to reflect high rates of construction price inflation and even some re-tendered contracts to reflect renegotiated or repricing. Given that the long-running buzzword of ‘uncertainty’ is still high on risk registers, according to the report, the lags between contract award and start date may also be lengthened, as well as the lingering possibility of projects stalling or being cancelled after contract award.
For more insight, download the Regional Construction Hotspots in Great Britain 2025 report.
