Key Trends for 2025
The UK construction industry is forecasted to experience significant growth starting in 2025, driven by several key factors:
- Recovery in Housing Markets: The private housing sector is set to lead growth, with expected increases of 13% in 2025 and 15% in 2026. Stabilised housing prices and rising household incomes are boosting buyer confidence, spurring activity in both private and social housing developments.
- Public Investment and Reforms: Government planning reforms and funding are supporting infrastructure and housing projects, including £500 million for affordable homes and initiatives to increase housing supply. Additionally, NHS infrastructure funding and Net Zero-related investments in utilities are expected to accelerate public-sector construction.
- Commercial and Office Developments: The commercial sector, particularly office construction, is predicted to see a sharp rebound, with a projected 18% growth in 2025. The hybrid working trend is driving demand for new builds and refurbishments.
- Increased Consumer Confidence: Fiscal adjustments, easing borrowing costs, and rising economic stability are creating a favourable environment for construction investments across sectors like retail, leisure, and civil engineering.
Top Sectors for Investment in 2025:
- Private and Social Housing: Driven by increased demand and government incentives.
- Infrastructure Projects: Water utilities, railways (e.g., HS2), and renewable energy projects.
- Commercial Spaces: Especially those adapting to modern office needs and hybrid work models.
How should developers and investors prepare for this growth to capitalise on an expanding market, especially in regions like the North West, which is poised for robust development?
Here at Quayside Construction, we specialise in delivering exceptional results for property developers, investors, and homeowners.
We do things differently by building relationships with our clients so, if you’re planning a new build, refurbishment, conversion, or large-scale development and you want unparalleled peace of mind talk to us.