‘Boom’ predicted for UK construction in 2025-26

That’s one of the main conclusions from an industry forecast by insight and intelligence firm Glenigan for 2025-2026.

Glenigan said that project starts would continue to strengthen as UK economic growth gathers momentum, with 8% construction growth predicted for 2025 and 10% for 2026.

It said project starts have stabilized since the general election earlier this year, which saw Sir Keir Starmer’s Labour government take office. Private sector work has risen gradually in H2 2024, it said.

Development pipelines are “firm”, with main contract awards up 7% in 2024, as compared to 2023, according to Glenigan.

Image: Glenigan

Commenting on the forecast, the company’s economic director Allan Wilen said, “The construction sector is on track for growth from 2025, fuelled by a combination of improved consumer confidence, increased household spending, and strategic fiscal changes announced in the recent Budget. These factors are set to drive activity in consumer-related verticals such as private housing, retail, and hotel & leisure.

“The Budget’s adjustments to fiscal rules, allowing for higher levels of capital investment, will also unlock significant public sector and infrastructure projects, providing a much-needed boost to government-funded initiatives over the next two years.”