World Suicide Prevention Day: Changing the Narrative in UK Construction
Construction News
Yorkshire and the Humber’s construction sector is experiencing a transformative year in 2025, with infrastructure projects leading unprecedented growth while traditional sectors face ongoing challenges. The region’s construction activity totalled £4.22bn in April 2025, representing a significant shift in market dynamics compared to previous years.
Current Construction Activity Overview
The Yorkshire and Humber construction market has shown resilient performance through the first half of 2025, with planning approvals experiencing triple-digit growth against both the preceding three months and the previous year. This surge in planning activity signals strong pipeline development for future construction projects across the region.
Q1-Q2 2025 Performance Highlights
Construction activity in Yorkshire and the Humber demonstrated mixed but encouraging results during the first half of 2025:
- Total project value: Work starting on-site reached £3.99bn in March 2025, increasing to £4.22bn by April 2025
- Project starts: Increased sharply against the preceding three months but remained below the previous year
- Planning approvals: Showing exceptional growth with triple-digit increases
Infrastructure Sector Leading Regional Growth
Power and Industrial Connections Drive Demand
The infrastructure sector has emerged as the standout performer in Yorkshire and the Humber’s construction landscape. New infrastructure orders more than doubled in Q1 2025, primarily driven by rising demand for power connections to support industrial expansion across the region.
This infrastructure boom reflects the region’s strategic importance in supporting the UK’s industrial growth ambitions. The high demand for power infrastructure connections demonstrates the region’s role as a key industrial hub, with businesses requiring enhanced electrical capacity to support manufacturing and data processing operations.
Major Infrastructure Projects 2025
Several significant infrastructure investments are shaping the region’s construction landscape:
- £150m Humber ports pipeline featuring nine projects including warehouses, paving, electrification, quay strengthening and mechanical handling
- £1bn YORcivil major works framework with eight firms competing for renewal
- Strategic land development at Stallingborough as part of the Humber ports expansion
Top Construction Projects Driving Activity
According to Barbour ABI’s latest data, the Yorkshire Post Site Student Accommodation leads regional projects with a value of £400m, followed by the City One 1925 Apartments/Offices/Hotel project at £307m.
The region’s construction pipeline demonstrates diversity across multiple sectors, with significant investments in:
- Student accommodation developments
- Mixed-use residential and commercial projects
- Industrial and logistics facilities
- Infrastructure upgrades
Sectoral Performance Analysis
Industrial Sector Strength
The industrial construction sector continues to perform strongly, contributing significantly to overall regional growth. This performance aligns with increased demand for manufacturing facilities, logistics centres and data processing infrastructure.
Private Housing Market Resilience
Private housing construction remains active throughout 2025, with forecasts indicating private housing as the fastest-growing sector in the region. Leeds particularly benefits from a strong residential development pipeline, though supply chain constraints pose potential risks to project starts.
Regional housing growth has been remarkable over recent years, with house building increasing by 76% over five years, including exceptional growth of 1,233% in York since scheme launch.
Project starts and improved viability continue to drive strong market growth
Sheffield and Leeds remain resilient, with consistent growth supported by a steady flow of new build and refurbishment projects starting on site.
Across the wider market, caution persists around large-scale schemes, with viability still presenting challenges. However, this gap is gradually narrowing, creating stronger conditions for future development.
Building Safety Regulator applications remain a significant pinch point, with many projects facing notable delays as a result.
Within the public sector, the priority continues to be estate rationalisation and decarbonisation, with clients seeking to optimise and modernise their existing portfolios rather than expand them.
In recent years, contractors have largely limited themselves to negotiating tenders or working on a two-stage basis. Encouragingly, we are now seeing a shift in approach for smaller schemes, with contractors increasingly willing to tender depending on the project’s nature.
The Tier 1 and Tier 2 contractor market remains highly active. However, contractor selection continues to pose challenges, as many order books are heavily weighted towards servicing existing clients.
Market Activity Cycle
The subjective current performance of sectors is identified by ascribing one of the coloured arrows (shown in the legend of the chart) to each sector. NB: In this analysis, sectors are not individually weighted.
Key Market Challenges
Grid Infrastructure Constraints
Existing electrical grid constraints represent a significant challenge impacting project delivery across multiple sectors. These limitations particularly affect:
- Hospital developments
- Residential projects
- Data centre construction
The mismatch between industrial growth demands and grid capacity highlights the need for strategic infrastructure investment and innovative connection solutions.
Rising Construction Costs
Construction cost inflation continues to pressure project viability across Yorkshire and the Humber. BCIS forecasts 17% building costs increase over next five years, with tender prices will rise by 19% and new work output, which contracted since mid-2023, is expected to grow by 21%.
These cost pressures require careful project management and early client engagement to maintain project feasibility and delivery timelines.
Supply Chain and Regulatory Challenges
- Supply chain constraints affecting material availability and pricing
- Increased sustainability requirements impacting project complexity
- Building Safety Act compliance adding regulatory burden to project starts
Leading Construction Companies in Yorkshire and the Humber 2025
The region’s construction activity is supported by established industry leaders. AHR Building Consultancy Limited leads with 27 projects valued at £773m, followed by Caddick Construction Limited with 27 projects worth £597m.
| Position | Company | Role | Project Count | Value |
|---|---|---|---|---|
| 1 | AHR Building Consultancy Limited | Consultancy | 27 | £ 772,789,600 |
| 2 | Caddick Construction Limited | Contractor | 27 | £ 597,269,378 |
| 3 | GMI Construction Group Plc | Contractor | 10 | £ 334,000,000 |
| 4 | AmcoGiffen | Contractor | 14 | £ 266,085,659 |
| 5 | Keepmoat | Developer | 7 | £ 228,550,000 |
| 6 | Powerlines Group GMBH | Contractor | 3 | £ 223,300,000 |
| 7 | SMR Architects | Architect | 12 | £ 219,301,000 |
| 8 | Wykeland Group Limited | Developer | 6 | £ 183,943,000 |
| 9 | Commercial Development Projects Limited | Developer | 6 | £ 139,244,000 |
| 10 | Race Cottam Associates Limited | Architect | 13 | £ 128,167,500 |
This concentration of expertise within regional firms supports continued growth and project delivery capabilities.
2025 Market Outlook and Future Trends
The Yorkshire & Humber construction sector continues to navigate a path of cautious, but optimistic growth, with several factors supporting continued expansion:
- Strong infrastructure investment pipeline
- Robust private housing demand
- Industrial sector expansion requirements
- Strategic location advantages for logistics and manufacturing
Regional Construction Employment and Skills
The construction sector’s growth trajectory creates significant employment opportunities across Yorkshire and the Humber. Infrastructure and industrial projects particularly demand skilled trades including electrical, mechanical, and civil engineering specialists.
Investment in skills development and apprenticeship programmes becomes crucial to support continued sector expansion and meet growing project demands.
Yorkshire and the Humber’s Construction Market Activity 2025
Yorkshire and the Humber’s construction sector demonstrates remarkable resilience and adaptability in 2025. While facing genuine challenges around grid capacity, rising costs and regulatory complexity, the region benefits from strong infrastructure investment, robust private housing demand, and strategic industrial growth.
The infrastructure boom, supported by power connection demands and industrial expansion, positions Yorkshire and the Humber as a key regional construction market. Success in navigating current challenges while capitalising on growth opportunities will determine the sector’s continued momentum through 2025 and beyond.
For construction professionals, developers and investors, Yorkshire and the Humber offers compelling opportunities within a dynamic and evolving market landscape. The region’s strategic advantages, combined with strong project pipelines across multiple sectors, support optimistic medium-term prospects despite near-term operational challenges.
About Atkins Search
Atkins Search specialises in connecting construction professionals with opportunities across Yorkshire and the Humber’s thriving construction sector. Our expert recruitment consultants understand the regional market dynamics and can help you navigate career opportunities within this growing industry.
Whether you’re an experienced Site Manager, a skilled Quantity Surveyor, or an ambitious Engineer, we specialise in securing both permanent and freelance construction jobs in Yorkshire and the Humber. Explore all our job opportunities here.
Our Senior Recruitment Consultant, Olivia Hartley, has been matching construction professionals with their ideal roles since 2021. Covering Yorkshire, Olivia works closely with some of the region’s leading construction firms to secure the best opportunities in Yorkshire and the Humber and beyond.
At Atkins Search, we prioritise people over processes. We take the time to understand your career ambitions, work preferences and non-negotiables, ensuring that every role we present aligns with your long-term goals. Submit your CV today to stay ahead of the industry, and gain exclusive access to job opportunities before they go live.
Contact Olivia today to find your next construction job in Yorkshire
Related Readings
Frequently Asked Questions (FAQs)
What is driving construction growth in Yorkshire and the Humber in 2025?
Infrastructure investment is the primary growth driver, with new orders more than doubling in Q1 2025. The region benefits from high demand for power connections to support industrial expansion, strategic port developments including the £150m Humber ports pipeline, and robust private housing demand. Total construction activity reached £4.22bn in April 2025.
Which construction sectors are performing best in the region?
Infrastructure and industrial sectors are leading growth, with infrastructure orders doubling in early 2025. Private housing remains active and is forecast as the fastest-growing sector. However, public housing and commercial construction continue to experience declining output.
What are the main challenges facing construction projects in Yorkshire and the Humber?
Key challenges include existing grid constraints affecting hospital, residential, and data centre projects; rising construction costs with 14% increases forecast over five years; supply chain constraints impacting material availability; and increased regulatory requirements from sustainability standards and the Building Safety Act.
How does 2025 construction activity compare to previous years?
While project starts increased against the preceding three months, they remain below the previous year's levels. However, planning approvals show exceptional triple-digit growth, indicating a strong future pipeline. The region demonstrates more resilience than national averages, with targeted growth in strategic sectors.
What major construction projects are currently active in Yorkshire and the Humber?
Leading projects include the £400m Yorkshire Post Site Student Accommodation, the £307m City One 1925 mixed-use development, the £150m Humber ports infrastructure pipeline, and the £1bn YORcivil major works framework. These projects span student accommodation, mixed-use developments, industrial facilities, and strategic infrastructure.
Which cities and areas within Yorkshire and the Humber show strongest construction activity?
Leeds demonstrates particularly strong residential development activity with a robust pipeline, though supply chain constraints pose risks. The Humber ports area benefits from significant infrastructure investment, while York has experienced remarkable 1,233% growth in house building since recent scheme launches.
What construction skills are most in demand in the region?
Infrastructure and industrial project growth creates high demand for electrical specialists, mechanical engineers, and civil engineering professionals. Power connection projects require specialised electrical trades, while industrial expansion needs skilled construction workers across multiple disciplines including project management and building safety expertise.
How are rising construction costs affecting projects in the region?
Construction costs are increasing significantly, with BCIS forecasting 14% building cost increases over the next five years and 15% tender price rises. Projects require early client engagement, careful cost management, and innovative procurement strategies to maintain viability and delivery schedules.
What is the outlook for construction employment in Yorkshire and the Humber?
The sector's growth trajectory, particularly in infrastructure and industrial construction, creates substantial employment opportunities. Skills development and apprenticeship programs are crucial to meet growing project demands, with particular opportunities in electrical, mechanical, and specialised construction trades.
How can construction companies capitalise on regional growth opportunities?
Companies should focus on early client engagement for project planning, develop expertise in power connection solutions to address grid constraints, invest in sustainability and Building Safety Act compliance, and build strong supply chain relationships to manage cost pressures and material availability challenges.
