The UK construction sector is on course for modest growth, but uncertainty is casting a long shadow. The Construction Products Association (CPA) forecasts total output to rise by 1.9% in 2025 and 3.7% in 2026, echoing its Spring projections.
Growth will be driven by the three biggest sectors:
- Private housing new build – output set to climb 4.0% in 2025 and 7.0% in 2026
- Private housing repair, maintenance & improvement (RMI) – forecast growth of 2.0% in 2025, rising to 3.0% in 2026
- Infrastructure – output expected to rise 1.9% in 2025 and 4.4% in 2026
What’s driving the numbers?
Housing: Major housebuilders are seeing slow but steady recovery. Smaller developers are benefiting from improved demand but face site viability pressures due to rising costs and regulatory demands.
Home improvements: Energy-efficiency programmes and fire safety remediation are supporting activity, but many homeowners remain cautious, choosing to save rather than invest.
Infrastructure: Major projects such as HS2 and Hinkley Point C continue to anchor the sector, with water, sewerage, and energy generation projects set to grow. However, delays and funding risks for road and rail projects remain significant concerns.
The risks ahead
While demand is picking up, several headwinds could slow progress:
- Rising economic uncertainty and possible tax increases
- Delays at the Building Safety Regulator affecting Build-to-Rent and high-rise schemes
- Consumer caution holding back home improvement spending
- Ongoing pauses and cancellations in government-backed infrastructure projects
What this means for contractors and developers
Opportunities are emerging, but timing is everything. Growth will rely on when mortgage rates fall, when consumer confidence improves, and when regulatory bottlenecks ease. Infrastructure looks strong on paper, but delivery depends on government follow-through.
At Rethync, we help contractors and developers keep projects moving by securing sites, ensuring compliance, and protecting assets — even when the wider market feels uncertain.
Get in touch with us today to discuss how we can support your next project.