Residential building contractors are contingent on the propensity of property developers to invest in new ventures; movements in property prices; government schemes intended to boost the housing supply; and underlying sentiment in the housing market. Industry contractors have endured turbulent operating conditions over the past five years, leading to volatile shifts in revenue and profitability. Revenue is forecast to grow at a compound annual rate of 5.4% over the five years through 2025-26, reaching £99.7 billion. The pandemic caused a significant drop in output in 2020-21, as restrictions placed on on-site activity and fewer enquiries for new housing units reduced revenue opportunities. Aided by government support for the housing market and the release of pent-up demand, 2021-22 was characterised by a strong rebound in activity, though materials and labour shortages maintained constraints on output. Mounting supply chain disruption and heightened economic uncertainty maintained pressure on output in the following year, though revenue growth was maintained by growth in average selling prices. Interest rate hikes and inflationary pressures led to a more subdued housing market in 2022-23, holding back the number of housing starts and completions during the year. This was followed by a slump in new residential building construction in the following year, as high borrowing costs and uncertain market conditions caused developers to scale back investment plans. The new Labour government has put forth ambitious housing targets, leading to planning reforms, increased funding for SME housebuilders and a particular focus on affordable housing to speed up housing delivery. Even though economic conditions continue to affect investor sentiment, supportive supply-side policies are anticipated to boost revenue growth by 0.5% in 2025-26. This growth is expected to also be fuelled by an uptick in new orders for residential building construction, coupled with a rise in average selling prices. Revenue is slated to climb at a compound annual rate of 2.3% to reach £112.5 billion over the five years through 2030-31. Housebuilding activity is set to grow in the medium-term, aided by the release of pent-up demand. Nonetheless, significant uncertainty remains, with mortgage rates likely to settle well-above pre-pandemic levels and supply chains remaining fragile. The new government’s pledge to deliver 1.5 million houses during the first five years of parliament will boost demand for industry contractors, though the full impact of this on growth prospects is dependent on the nature and extent of accompanying funding plans.

Building contractors and developers depend on various socio-economic factors, including property values, underlying sentiment in the housing market, the degree of optimism among downstream businesses and credit conditions. All of these drivers typically track in line with economic sentiment, with recent economic shocks spurring a difficult period for building contractors and developers. Nonetheless, the enduring need for building services, particularly to tackle housing shortages across the continent, ensures a strong foundation of work. Revenue is forecast to grow at a compound annual rate of 2.3% to reach €1.3 trillion over the five years through 2025. Operational and supply chain disruption caused by the pandemic reversed the fortunes of building contractors and developers in 2020, as on-site activity tumbled and downstream clients either cancelled, froze or scaled back investment plans. Aided by the release of pent-up demand and supportive government policy, building construction output rebounded in 2021. Excess demand for key raw materials led to extended lead times during this period, while input costs recorded a further surge as a result of the effects of rapidly climbing energy prices following Russia’s invasion of Ukraine. Soaring construction costs and the impact of interest rate hikes on both the housing market and investor sentiment led to a renewed slowdown in building construction activity across the continent. However, falling inflation and the start of an interest rate cutting cycle have spurred signs of a recovery in new work volumes, supporting anticipated revenue growth of 2.3% in 2025. Revenue is forecast to increase at a compound annual rate of 6.7% to €1.7 trillion over the five years through 2030. Activity is set to remain sluggish in the medium term, as weak economic growth and uncertainty surrounding the impact of the volatile global tariff environment on inflation and borrowing costs continue to weigh on investor sentiment. Contractors and developers will increasingly rely on public sector support, including measures to boost the supply of new housing, as countries seek to tackle severe housing shortages. Meanwhile, the introduction of more stringent sustainability requirements will drive demand for energy retrofits.

The 10 largest mortgage lenders in the United Kingdom accounted for approximately 83 percent of the total market, with the top three alone accounting for 48 percent in 2024. Lloyds Banking Group had the largest market share of gross mortgage lending, with nearly 47 billion British pounds in lending in 2024. HSBC, which is the largest UK bank by total assets, ranked fifth. Development of the mortgage market In 2024, the value of outstanding in mortgage lending to individuals amounted to 1.6 trillion British pounds. Although this figure has continuously increased in the past, the UK mortgage market declined dramatically in 2024, registering the lowest value of mortgage lending since 2015. In 2020, the COVID-19 pandemic caused the market to contract for the first time since 2012. The next two years saw mortgage lending soar due to pent-up demand, but as interest rates soared, the housing market cooled, leading to a decrease in new loans of about 100 billion British pounds. The end of low interest rates In 2021, mortgage rates saw some of their lowest levels since recording began by the Bank of England. For a long time, this was particularly good news for first-time homebuyers and those remortgaging their property. Nevertheless, due to the rising inflation, mortgage rates started to rise in the second half of the year, resulting in the 10-year rate doubling in 2022.

Mortgage brokers’ revenue is anticipated to climb at a compound annual rate of 4.5% over the five years through 2024-25 to £2.3 billion, including estimated growth of . Rising residential property transactions stimulated by government initiatives and rising house prices have driven industry growth. However, mortgage brokers have faced numerous obstacles, including downward pricing pressures from upstream lenders and a sharp downturn in the housing market as rising mortgage rates ramped up the cost of borrowing. After a standstill in residential real estate activity in the immediate aftermath of the COVID-19 outbreak, ultra-low base rates, the release of pent-up demand, the introduction of tax incentives and buyers reassessing their living situation fuelled a V-shaped recovery in the housing market. This meant new mortgage approvals for house purchases boomed going into 2021-22, ramping up demand for brokerage services. 2022-23 was a year rife with economic headwinds, from rising interest rates to fears of a looming recession. Yet, the housing market stood its ground, with brokers continuing to benefit from rising prices. Elevated mortgage rates eventually hit demand for houses in the first half of 2023, contributing to lacklustre house price growth in 2023-24, hurting revenue, despite a modest recovery in the second half of the year as mortgage rates came down. In 2024-25, lower mortgage rates and an improving economic outlook support house prices, driving revenue growth. Mortgage brokers’ revenue is anticipated to swell at a compound annual rate of 5.3% over the five years through 2029-30 to £2.9 billion. Competition from direct lending will ramp up. Yet, growth opportunities remain. The emergence of niche mortgage products, like those targeting retired individuals and contractors, as well as green mortgages, will support revenue growth in the coming years. AI is also set to transform the industry, improving cost efficiencies by automating tasks like document verification, risk assessment and customer profiling.

The Structural Metal Product Manufacturing industry is heavily reliant on the performance of its key markets, like the construction sector. From putting together frameworks for residential homes, offices and entertainment venues to manufacturing metal doors and windows, the output of this industry plays a key role in shaping Europe's urban landscape. As Europe's construction sector quickly regained momentum after the pandemic, manufacturers benefitted from , as well as pent-up demand for housing, both commercial and residential.Costruction activity tumbled once again in 2022 as Russia's invasion of Ukraine created more economic disruption and Europe was crippled by skyrocketing inflation. Beyond material costs, steep inflation, driven by energy price hikes and supply chain issues, led to greater operating expenses and higher borrowing costs for construction firms as key interest rates rose, too. Europe will see a moderate recovery and a slight uptake in construction activity in 2025, following a challenging few years. Therefore, over the five years through 2025, revenue is set to swell at a compound annual rate of 4.8% to €247.1 billion, including a 1.9% hike in 2025. Major construction projects, like France's Grand Paris Express metro project, have supported sales of structural steel products, offering a stable and steady stream of revenue. also have propped up demand for structural metal products, particularly prefabricated buildings, supporting revenue growth in the last five years. Looking ahead, the next five years look favourable for the industry. Metal structure manufacturers' revenue is forecast to creep upwards at a compound annual rate of 5.8% over the five years through 2030 to €327.4 billion. Investment in commercial construction and communications infrastructure is set to drive demand for metal structures like steel foundations and components used in building transmission towers. Furthermore, there is likely to be a strong demand for housing in Europe in the coming years. Government policies targeting residential construction, including France's social housing units plan and Spain's State Housing Plan, are also set to support revenue expansion.

The Estate Agents industry is mostly made up of many small companies that operate locally, attracting customers through their expert regional knowledge. However, a few larger estate agents, like Connells Group, Savills and LSL Property Services, operate throughout the UK, leveraging their brand power and global resources to capture more of the market. Estate agent revenue is expected to fall at a compound annual rate of 1.9% over the five years through 2024-25 to £13.7 billion, including a forecast rise of 3.2% in 2024-25. The pandemic induced fierce volatility and a shift in market dynamics in 2020-21, but activity quickly bounced back. Despite a solid recovery, aided by pent-up demand and government support, aggressive interest rate hikes and a gloomy economic outlook hit property markets in 2023-24, hurting transaction volumes and limiting the need for estate agents. Declining transaction volumes translated into a corresponding dip in estate agents' lead generation in over the year. However, things are looking up in 2024-25. House prices are on the rise, climbing consistently between March and December 2024, according to the Office for National Statistics. At the same time, interest rates are edging downwards – the Bank of England cut the base rate to 4.5% in February 2025 – and will likely fall further later in 2025. Also, Stamp Duty thresholds will fall on 1 April 2025, leading to people rushing to complete purchases before this deadline to avoid paying extra stamp duty. This is likely to boost property transactions, translating to higher revenue and increased profit for estate agents. Revenue is forecast to grow at a compound annual rate of 3.7% over the five years through 2029-30 to £16.4 billion. The economic environment is set to stabilise in the short term as interest rates fall, pushing up prices and transaction volumes and supporting revenue growth. The rise of online-only and hybrid estate agents will continue to gather momentum as e-commerce grows. However, bricks-and-mortar agencies will likely remain on top thanks to their expert regional knowledge and personalised services. Increased funding for housebuilding from the government should increase the supply of housing in the future, further driving revenue growth for estate agents – they’ll have more houses to sell. The introduction of the Renters Rights Act, currently expected in summer 2025, will shake the industry in the short term. However, those prepared to embrace the changes the act brings will be well-positioned to thrive.

Contractors required to provide ancillary civil engineering solutions have been impacted by trends in the wider construction sector in recent years. Following a period of robust growth, decaying housebuilding activity has had a knock-on effect on demand for enabling works. Along with the impact of economic uncertainty on commercial construction markets, this has offset the impact of government infrastructure investment to spur a contraction in revenue. Over the five years through 2024-25, contractors' revenue is forecast to tumble at a compound annual rate of 2.2% to £40.1 billion. Following a slump in revenue and profitability during the pandemic, work rebounded to drive strong revenue growth in 2021-22. This was aided by renewed infrastructure stimulus to get spades back in the ground and the release of pent-up demand following intermittent lockdowns. Ongoing supply chain disruption and soaring input costs throughout the construction sector have maintained cash flow difficulties. The wider economic slowdown and subdued housing market conditions has hit new orders, as downstream clients have displayed a degree of risk aversion. Revenue is forecast to decline by 4.1% in 2024-25. Revenue is forecast to climb at a compound annual rate of 0.9% to reach £42 billion over the five years through 2029-30. Housebuilding activity is forecast to remain subdued in the short term, as high borrowing costs and unfavourable economic conditions encourage investors to steer clear of the housing market. However, planning reform introduced by the government in pursuit of lofty housebuilding targets is intended to lead to new housing developments in the medium-term, boosting demand for enabling works. Private and public sector infrastructure investment is set to be increasingly geared towards the UK’s net zero agenda in the coming years, with the expansion of offshore wind farms set to drive demand for marine and coastal construction.

Economic uncertainty and inflationary pressures have spurred a degree of instability in the UK economy in recent years. This has made private investors reluctant to dedicate significant spending towards capital ventures, weighing on lead generation in commercial building construction markets. High construction costs and rising interest rates have created further apprehension among property developers to engage in new ventures, though long-term government capital procurement frameworks have provided some resilience to wavering private investment. Aided by the release of pent-up demand and a stronger-than-anticipated initial economic recovery from the pandemic, the industry recorded a strong rebound in new orders in 2021-22, particularly in private commercial and private industrial markets. However, capacity constraints and the impact of reduced new work volumes secured during the height of the pandemic limited output growth. Growth in new order volumes slowed in 2022-23, as economic uncertainty compounded and rising tender prices reduced the propensity of investors to commit to commercial real estate ventures. High borrowing costs continued to weigh on investor sentiment in 2023-24, with interest rates hitting 5.25% in August 2023, according to the Bank of England. However, a steady stream of work on projects procured through capital procurement frameworks, including Procure23 and the School Rebuilding Programme, has bolstered revenue growth for publicly funded buildings. Overall, revenue is expected to climb at a compound annual rate of 3.6% over the five years through 2025-26 to £21.6 billion, despite a forecast dip of 1.4% in 2025-26 as inflationary pressure hits demand. Revenue is slated to swell at a compound annual rate of 1.1% over the five years through 2030-31 to reach £22.9 billion. The effects of the UK's economic slowdown will continue to bite in the near term as weak order books limit remuneration. Still, commitments made by the government as part of capital procurement frameworks will continue to support demand for commercial building contractors in the coming years, while private-sector order books should improve as borrowing costs come down. Although input price inflation is set to continue to ease in the medium term, material costs are likely to remain elevated and a construction worker shortage will pressure profit. According to the Building Cost Information Service, material costs are anticipated to grow by 15% in the five years through Q3 2030.

Demand for beds and mattresses remains consistent because of the absence of alternatives, but retailers find it challenging due to severe competition. The expanded emphasis on sleep quality, which is influenced by the standard of beds, mattresses and other bedding products, promotes consumer spending on high-end products in the industry. Additionally, increasing investment in homes and a swell in residential property deals further bolster the sales of beds and mattresses. Revenue is expected to contract at a compound annual rate of 6.8% over the five years through 2024-25 to £410.4 million, including an estimated drop of 0.1% in 2024-25. Traditional retailers struggle to compete with online retailers, which often offer lower prices. These traditional retailers are forced to offer discounts, which limit revenue and profit, while customers increasingly switch to online shopping. The pandemic heightened this trend, as in-store sales plunged because of restrictions. While the reopening of stores and pent-up consumer demand provided revenue growth in 2021-22, the cost-of-living crisis cut consumer spending in 2023-24. However, cooling inflation and enhanced consumer confidence in 2024-25 will strengthen profitability as consumer spending expands — profit is forecast to rise to 8.4%. Revenue is expected to expand at a compound annual rate of 1.2% over the five years through 2029-30 to £436.2 million. Elevated interest rates will limit consumer spending in the short term, but as the interest rates weaken, spending on capital dwellings will rally, boosting demand for premium beds and mattresses as consumers prioritise better sleep quality. Government-backed residential construction initiatives like planning reforms to build 1.5 million homes by 2029-30 will also stimulate investment in homes and property transactions, supporting market demand. Nonetheless, high competition will continue to challenge revenue and profit, with stores forced to pull out of bricks-and-mortar stores to focus on expanding their online platforms to tap into growing e-commerce opportunities.