The number of housing units whose construction started in Wales in 2023 was over three times higher than in 2020. The source did not provide data for 2021. Overall, the number of housing starts has decreased a lot between 2000 and 2020. Wales was the country with the lowest number of housing completions per capita in Great Britain.

The UK Residential Construction Market is Segmented by Type (Apartments & Condominiums, Landed Houses & Villas, and Other Types), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site, Modern Methods of Construction), by Investment Source (Public, Private), and by Geography (London, Birmingham, and More). The Market Forecasts are Provided in Terms of Value (USD).

Repair and maintenance of private homes was the segment of residential construction with the highest annual growth rate in 2023. Meanwhile, new private and public housing construction increased by over five percent that year.

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 £100.5 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.

Starts and completions of new build dwellings in the UK, on a quarterly and annual basis, time series data

The number of new housing starts per capita in Northern Ireland fell slightly in the financial year 2023/24. That year, there were 3.1 housing units started for every 1,000 citizens of Northern Ireland. The supply of new homes reached its peak in 2009/10, when 4.5 housing units were started for every 1,000 inhabitants.

The number of housing units in Wales whose construction was completed in 2023 was much higher than in 2019. Most new housing was completed by private enterprises, with those built by housing associations only making up a small share of all completions.

Number of Businesses statistics on the Residential Building Construction industry in the UK

UK Residential Construction Market size was valued at USD 30.00 Billion in 2024 and is projected to reach USD 60.00 Billion by 2032, growing at a CAGR of 9% from 2026-2032.

UK Residential Construction Market: Definition/ Overview

Residential construction refers to the process of building homes, apartments, and other dwellings for individuals or families. It involves various stages such as planning, design, site preparation, and the actual construction of the structure. The application of residential construction is essential in meeting the growing demand for housing due to population growth, urbanization, and economic development.

In the future, the industry is expected to embrace new technologies like sustainable building materials, smart home systems, and modular construction to create more energy-efficient, cost-effective, and environmentally friendly homes, making it a key player in addressing housing challenges.

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 UK Residential Building Construction market is poised for steady growth, projected to reach an estimated USD 185.55 million in 2025. The industry is expected to experience a Compound Annual Growth Rate (CAGR) of 2.26% during the forecast period of 2025-2033. This sustained expansion is driven by persistent demand for diverse housing solutions, including villas, landed houses, condominiums, and apartments, across key urban centers like London, Birmingham, Glasgow, and Liverpool, as well as the broader UK landscape. The sector benefits from ongoing urbanization, a growing population, and government initiatives aimed at boosting housing supply and affordability. Furthermore, the increasing focus on sustainable building practices and the adoption of innovative construction technologies are contributing to market resilience and future development. Despite the positive growth trajectory, the UK Residential Building Construction market faces certain constraints. Rising material costs, labor shortages, and stringent regulatory frameworks present ongoing challenges. However, established construction giants such as Willmott Dixon Holdings, Mace, Skanska UK, Balfour Beatty, and Kier Group, alongside emerging players and international firms like Lendlease and Bouygues UK, are actively navigating these complexities through strategic investments in technology, supply chain optimization, and talent development. The market's segmentation by property type and its concentration in major cities highlight areas of opportunity and competition, with a keen eye on market dynamics in Europe and beyond as the industry continues to evolve. Key drivers for this market are: 4., Growth in Commercial Activities and Increased Competition4.; Increasing Demand for Affordable Housing Units. Potential restraints include: 4., Lack of Housing Spaces and Mortgage Regulation can Create Challenges. Notable trends are: Government mandates pertaining to Energy Efficiency.

Discover the latest insights into the UK residential building construction market. Explore market size, growth trends (CAGR 2.26%), key players (Willmott Dixon, Mace, Balfour Beatty), regional analysis, and future forecasts (2025-2033) for London, Birmingham, and more. Learn about driving factors, restraints, and segmentation impacting the £185.55 million market. Recent developments include: December 2022: 375 low-carbon rental homes are delivered as part of a historic restoration project for Bristol City Center through public-private partnerships., December 2022: As the One Sydney Harbour residential building from Lendlease celebrates a critical milestone of "topping out" of Residences One, marking the completion of the highest structural point of the 72-story tower, it has secured more than $3.7 billion in sales over its three towers.. Key drivers for this market are: 4., Growth in Commercial Activities and Increased Competition4.; Increasing Demand for Affordable Housing Units. Potential restraints include: 4., Lack of Housing Spaces and Mortgage Regulation can Create Challenges. Notable trends are: Government mandates pertaining to Energy Efficiency.

This dataset contains a short-term measure of output by the private sector and public corporations in the construction industry in Great Britain, including quarterly data. Values are given in millions of pounds and are seasonally adjusted. Output is defined as the amount charged by construction companies to customers for the value of work (produced during the reporting period) excluding VAT and payments to sub-contractors. Construction output estimates are a short-term indicator of construction output by the private sector and public corporations within Great Britain and are produced from a monthly survey of 8,000 businesses in Great Britain. The estimates are produced and published at current prices (including inflationary price effects) and at chained volume estimates (with inflationary effects removed) both seasonally adjusted and non-seasonally adjusted. Chained volume measures are also described as volume. Construction output is used in the compilation of the output approach to measuring gross domestic product (GDP). The most recent ONS data release from which this data is sourced can be found here.

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.

The number of housing units per capita completed in Northern Ireland fell in the financial years ended in 2023 and 2024. Those figures have not recovered from the peak that they reached in 2018/19. In the year ended in 2022, there were 3.8 housing units for every 1,000 people in Northern Ireland. The number of housing units per capita completed in Scotland was higher than in Northern Ireland.

The virtual survey dataset is an experimental snapshot of basic building parameters consisting of:- Age Band Property Type Built Form System /Construction Type Main Wall Construction The data has been derived, using existing data on Council Housing and using GIS in combination with internet maps/street view, Energy Performance Certificate (EPC) data, building control notifications scheme installation data, and estate scale planning applications. No warranty is made as to the accuracy of the data, which is often subjective. Age Band for example is probably accurate to within one band. For example a property listed as “1900-1929” may actually be “Pre-1900”.

The construction output prices of building new public and private housing increased by **** percent in 2024. Meanwhile, the output cost of repair and maintenance of homes just increased by **** percent that year. Although both segments of home construction soared in 2022, this rise was greater for new housing construction.

Market Size statistics on the Commercial Building Construction industry in the UK