The United Kingdom Construction Market Report is Segmented by Sector (Residential, Commercial, Infrastructure), by Construction Type (New Construction, Renovation), by Construction Method (Conventional On-Site, Modern Methods of Construction), by Investment Source (Public, Private), and by Geography (England, Scotland, Wales, Northern Ireland). The Market Forecasts are Provided in Terms of Value (USD).

Examine the UK Construction Market, valued at USD 316.38 billion in 2024. Insights forecast a surge to USD 439.04 billion by 2030 as infrastructure needs grow.

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).

Structured outlook signals and sector-level indicators referenced in London Construction Magazine’s UK Construction Market Outlook for 2026/27.

Housing and non-housing repair and maintenance were the segments with the largest construction output in the United Kingdom in 2024. Those two sectors together amounted to over ** percent of the industry. Meanwhile, the output of new private housing construction amounted to **** percent. The output volume of infrastructure in the past five years has been higher than in previous decades. A look at the construction output index for new private housing shows that output increased in 2021 and 2022, but it has fallen after that. Construction GVA increasingAn increased output also translated into a growing contribution to the gross domestic product (GDP). In the fourth quarter of 2024, the construction industry had a gross value added of nearly ** billion British pounds. That value reached a low point during the start of the COVID-19 pandemic. In comparison, the overall GDP of the United Kingdom was valued at over **** trillion British pounds. Private housing construction expected to declineThe output of the private housing sector was forecast to increase significantly in 2025. The few years after that, the output of private housing construction is expected to keep increasing but at a slower rate. The average price of houses in the UK increased noticeably in 2024, higher demand for and higher prices of housing generally incentivize the housing sector.

The size of the UK Construction Market market was valued at USD 398.68 Million in 2024 and is projected to reach USD 496.69 Million by 2033, with an expected CAGR of 3.19% during the forecast period. Recent developments include: December 2022: The Access Group has announced that it has successfully acquired Construction Industry Solutions (COINS), enhancing its capacity to offer international software and services to businesses engaged in the construction industry., March 2023: The Department of Transport, UK, has announced over £40 billion of capital investment in transport across the next two financial years, which will drive significant improvements to rail and roads across our country.. Key drivers for this market are: Transport Infrstructure Investment. Potential restraints include: Shortage of Skilled Labor. Notable trends are: Increase in GVA of construction Industry.

UK Construction Market size was valued at USD 372.95 Billion in 2024 and is projected to reach USD 512.37 Billion by 2032, growing at a CAGR of 4.05% from 2026 to 2032.

Key Market Drivers:

Government Infrastructure Investment: Government infrastructure investment and major railroad projects are fueling significant development in the UK construction industry. According to the Infrastructure and Projects Authority (IPA), the UK government's National Infrastructure and Construction Pipeline calls for £650 billion in investment across over 400 major projects by 2030, with HS2 alone contributing £100 billion. The extensive scope of these infrastructure projects continues to drive demand across many construction subsectors.

The United Kingdom Construction Market was USD 373.56 Billion in 2025, expected to grow at a 2.90% CAGR to USD 497.18 Billion by 2035.

The United Kingdom Data Center Construction Market Report is Segmented by Tier Type (Tier 1 and 2, and More), Data Center Size (Small, Medium, Large, and Hyperscale), Data Center Type (Colocation Data Center, Hyperscalers/Cloud Service Provider (CSPs), and Enterprise and Edge Data Center), and Infrastructure (Electrical Infrastructure, Mechanical Infrastructure, and More). The Market Forecasts are Provided in Terms of Value (USD).

Quarterly new orders at current price and chained volume measures, seasonally adjusted by public and private sector. Quarterly non–seasonally adjusted type of work and regional data.

In the third quarter of 2025, the gross value added (GVA) of the construction industry in the United Kingdom was higher than in the same period of the previous year. In the third quarter of 2025, the GVA of construction in the UK amounted to ***** billion British pounds. Out of its various segments, non-housing repair and maintenance constituted the biggest share of the UK construction industry based on output.

In 2025, the gross value added (GVA) of the construction industry in the United Kingdom amounted to over *** billion British pounds, compared with ******billion pounds in the previous 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.

This statistic shows the types of awarded construction projects by sector in the United Kingdom (UK) in April 2018. Out of all construction projects awarded, 35 percent were residential construction projects, while 17 percent were in the infrastructure sector.

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.

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

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.

Quarterly non-seasonally adjusted type of work and regional data at current prices, Great Britain.

Construction output is a monthly estimate of the output of the construction industry in both the private and public sectors. The estimates are a key component of Gross Domestic Product. Source agency: Office for National Statistics Designation: National Statistics Language: English Alternative title: Output in the Construction Industry

The UK construction market is booming! Discover a detailed analysis of its £398.68 million (2025) value, 3.19% CAGR (2025-2033), key drivers, trends, and challenges. Learn about leading companies and regional breakdowns. Invest wisely in this growing sector. Key drivers for this market are: Transport Infrstructure Investment. Potential restraints include: Shortage of Skilled Labor. Notable trends are: Increase in GVA of construction Industry.