Construction Outlook
Outlook for 2025 and Beyond: Despite the 2024 dip, the mid-term outlook is optimistic. Industry forecasts anticipate a return to growth in 2025.
A leading analysis expects an average annual growth of about 2.5% from 2025 through 2028.
This rebound is projected to be driven by a pickup in housing demand (potentially aided by new government incentives ahead of elections), continued strength in infrastructure, and major investments in sectors like industrial facilities, renewable energy, and utilities.
Government commitments – such as achieving 70% electricity generation from renewables by 2030 – are translating into large construction projects (for example, a £1.5 billion power transmission upgrade and multi-billion pound offshore wind developments) that will fuel industry activity.
Overall, while 2024 is a challenging year, the UK construction market is expected to regain momentum heading into 2025, demonstrating the sector’s long-term resilience.
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Contents
- Construction Outlook Introduction
- Key Financial Challenges for Construction Firms
- Trends in Construction Financing
- Key Market Drivers
- Housing Growth
- Government Policies & Public Investment
- Infrastructure & Non-Residential Construction
- Technological Advancements
- Construction Costs & Material Volatility
- Labour Market Trends & Wage Data
- Supply Chain Pressures & Regional Disparities
- Sustainability and Environmental Impact
- Materials and Technology
- Conclusion
- Tailored Financial Solutions for Construction Firms