TEMPLATE Expert Voice ‒ Fall 2025

The UK construction industry is positioning for sustained expansion through 2027, driven by a remarkable transformation where renovation work has surged to unprecedented levels, now 36% above pre-pandemic figures. Despite economic headwinds, the non-residential sector demonstrates resilience with projected annual growth of 2% between 2025-2027, as new construction work shows modest growth while renovation activities continue their upward trajectory.

Non-residential Sector-specific momentum continues across key areas, with industrial construction maintaining strong performance through major projects such as the €4.7bn Agratas gigafactory, and the €1.5bn Tata Steel electric arc furnace, which began construction in mid-2025. Healthcare construction is projected to accelerate in growth across the forecast horizon as the government’s restructured €17.7bn New Hospital Programme prioritises RAAC-affected sites and phases delivery over the next decade. Education construction also shows encouraging signs, with improved order books supported by sustained investment in school rebuilding and refurbishment programmes, while university infrastructure plans remain cautious but forward-looking. Office construction, traditionally the leading sector, remains subdued as uptake levels continue to lag. Meanwhile, retail construction is still in the doldrums, held back by macroeconomic headwinds that are dampening consumer demand and discouraging investment.

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