The UK construction industry is poised for significant expansion in 2025, with a range of new projects announced across various sectors. From renewable energy to urban regeneration, these developments are expected to boost the economy, create jobs, and modernise the nation's infrastructure.

Energy and Infrastructure Projects

Eastern Green Links (EGL1 & EGL2)

  • Two major subsea high-voltage direct current (HVDC) cables to transmit 4 GW of renewable energy from Scotland to England.
  • EGL1 (£1.3 billion) began construction in February 2025.
  • EGL2 (£2.1 billion) starts later this year, aimed at alleviating grid constraints and supporting decarbonisation.

AESC Gigafactory, Sunderland

  • £1 billion deal with Japanese battery firm AESC.
  • Will produce batteries for 100,000 electric vehicles annually.
  • A major boost for the UK’s EV infrastructure and regional employment.

Iberdrola Grid Upgrades

  • £600 million loan from the UK’s National Wealth Fund.
  • Supports two subsea transmission cables and onshore grid enhancements.
  • Enables better connectivity for remote wind farms to high-demand regions.

Urban Regeneration and Housing

Droylsden Masterplan, Manchester

  • £100,000 revitalisation effort funded by Homes England.
  • Includes creation of Hollinwood Canal Park.
  • Transforms derelict areas into community-focused green spaces.

Square Gardens, Manchester

  • £400 million residential and mixed-use development.
  • Phase 2 completes March 2025, delivering 2,200 homes and commercial spaces.
  • Key component in Greater Manchester’s urban regeneration.

Transportation and Connectivity

Transpennine Route Upgrade

  • Upgrades railway between Manchester and York.
  • Electrification of Manchester Victoria–Stalybridge line by end of 2025.
  • Improves rail capacity and reduces journey times.

A9 Dualling Project, Scotland

  • Upgrade of 80 miles between Perth and Inverness.
  • Tomatin–Moy section construction begins Spring 2025.
  • Aims to enhance safety and journey reliability.

Conclusion

These upcoming projects highlight the UK’s commitment to sustainable infrastructure, housing delivery, and economic revival. Construction professionals, suppliers, and staffing agencies should prepare to meet rising demand across these rapidly expanding sectors.