United Kingdom’s Expert Voice ‒ Fall 2025

The UK construction industry is positioned for sustained expansion through to 2027, driven by a notable rise in renovation activity, which is now 24% above pre-pandemic levels. Despite economic headwinds, the non-residential sector remains resilient, with annual growth forecast at 2% between 2025 and 2027. While new construction work is expected to grow at a modest pace, renovation and repair continue to lead the sector’s upward trajectory.

Sector-specific momentum continues across key areas of UK non-residential construction. Industrial activity remains robust, supported by major projects such as the €4.7 billion Agratas gigafactory and the €1.5bn Tata Steel electric arc furnace, which began construction in mid-2025. Healthcare construction is expected to accelerate over the forecast horizon, driven by the government’s restructured €17.7bn New Hospital Programme, which prioritises RAAC-affected sites and phases delivery over the next decade. Education construction 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, increasing operational costs, and discouraging investment.

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