UK Construction sector forecast for 2025
As we approach 2025, the UK construction sector is expected to enter a period of significant growth and transformation. After grappling with recent economic challenges, there’s a renewed sense of optimism driven by increased project starts, advancements in technology, and supportive government policies.
Industry forecasts paint a positive picture for the sector. According to Glenigan’s latest UK Construction Industry Forecast, construction project starts are anticipated to grow by 8% in 2025, followed by a further 10% increase in 2026. This projected growth is linked to a recovering economy, which is likely to boost confidence among consumers and businesses alike, creating a stronger pipeline of projects. (specificationonline.co.uk)
Similarly, PwC’s Construction and Housebuilding Outlook expects real construction spending to grow by 2.9% in 2025. This optimism reflects the resilience of the sector and its ability to adapt to recent economic pressures. (pwc.co.uk)
Technology is set to play a transformative role in the sector’s development. By 2025, the adoption of innovations such as Building Information Modelling (BIM), drones, artificial intelligence, and robotics is expected to become more widespread. These technologies, while requiring substantial upfront investment, are anticipated to enhance efficiency and reduce costs over the long term by improving project management and minimising errors. (ukconstructionmedia.co.uk)
Sustainability will also remain a key focus for the industry. Developers are increasingly integrating renewable energy systems and waste reduction strategies into their projects. While these measures may add to initial costs, they promise long-term benefits such as lower energy consumption and higher property values. Additionally, new regulations aimed at reducing carbon emissions and improving building safety will shape the way construction projects are delivered, requiring further investment to meet compliance standards. (ukconstructionmedia.co.uk)
One of the biggest challenges facing the sector is the ongoing shortage of skilled workers. According to the Construction Skills Network, an additional 225,000 construction workers will be needed by 2027 to keep up with demand. This shortfall could lead to increased labour costs and potential delays on key projects. To counter this, the industry is focusing on attracting new talent and providing training programmes to ensure a steady supply of skilled professionals. (curriebrown.com)
Overall, the outlook for the UK construction sector in 2025 is encouraging. Growth is expected to be driven by advancements in technology, a focus on sustainability, and improving economic conditions. However, addressing challenges such as labour shortages and regulatory compliance will be critical to maintaining this momentum. Collaboration across the industry will be essential to navigate these issues effectively, ensuring a resilient and successful future for the sector.