UK construction activity December 2025: North West

Project starts grew against the preceding three months and a year ago. However, main contract awards and detailed planning approvals both fell against the previous quarter and the 2024 levels.

North West overview

At £2.73bn, work starting on site in the North West during the three months to December grew 18 per cent against the preceding three months to stand 66 per cent up compared with a year ago. Major projects (£100m or more in value) starting on site totalled £1.42bn, a 79 per cent increase against the preceding three months to stand four times higher than last year’s levels. At £1.31bn, underlying project starts (less than £100m) grew ten per cent against the preceding three months on a seasonally adjusted (SA) basis and remained unchanged from a year ago.

Main contract awards in the North West totalled £1.74bn, 64 per cent lower than the previous quarter and 31 per cent down compared to last year’s levels. Major contract awards totalled £10m, a 98 per cent decline against the preceding three months and 79 per cent down on a year ago. Underlying contract awards grew 55 per cent (SA) against the preceding three months and decreased 20 per cent against last year’s levels to total £1.64bn.

Adding up to £1.39bn, detailed planning approvals decreased 71 per cent against the preceding three months and fell 64 per cent on the previous year. Major projects, at £200m, were 95 per cent lower than the preceding three months and fell 89 per cent on the previous year. Underlying approvals grew 22 per cent (SA) against the preceding three months to stand 43 per cent down against last year’s levels to total £1.19bn.

Sector analysis: project starts

Private housing accounted for the greatest share (50 per cent) of work starting on site in the North West during the three months to December, as the value grew 90 per cent against the previous year. Private housing construction starts added up to £1.37bn.

Utilities also jumped nearly nine times against last year to total £339m, a 12 per cent share of starts in the region. Totalling £253m, social housing grew 26 per cent in value against last year to account for nine per cent. Accounting for an eight per cent share, industrial doubled on a year ago to total £216m.

Value of project starts in the North West during the three months to December 2025 by sector

Sector analysis: detailed planning approvals

Accounting for 48 per cent, private housing was the most active sector in the North West during the period. The value of approvals in the sector fell 39 per cent against last year’s levels to total £663m. Accounting for an 11 per cent share, social housing decreased 76 per cent on a year ago to total £150m.

Accounting for an eight per cent share, industrial also experienced a weak period, having declined 85 per cent on the previous year, adding up to £116m. In contrast, at £74m, the community & amenity sector jumped more than six times year-on-year to account for a five per cent share of the region.

Value of project approvals in the North West during the three months to December 2025 by sector

Forecast construction starts for the North West

Note: Underlying projects are schemes with a construction value of £250,000 to £100m. Forecast updated in January 2026 p – provisional, f – forecast. Source: Glenigan