UK Construction Industry Report 2025: Output to Grow by 2% This Year, Supported by the Easing of Interest Rates, and Investments in Housing, and Commercial Projects - Forecast to 2029 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "The UK Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q3 2025)" report has been added to ResearchAndMarkets.com's offering.

The construction industry in the UK is expected to grow in real terms by 2% in 2025, supported by the easing of interest rates, coupled with investments in housing, and commercial projects.

In June 2025, the National Health Service (NHS) announced the Shared Business Services (SBS) initiative worth GBP2.6 billion ($3.4 billion) and identified 27 suppliers who will be entitled to supply the next-gen modular building framework. This will enable faster, more cost-effective, and less disruptive building projects, helping the public projects in addressing urgent needs, like building more hospitals, schools, and houses quickly; this initiative will run for four years.

Furthermore, in August 2025, the Bank of England announced a cut in interest rates from 4.25% to 4%, which is the fifth cut announced since August 2024; it is likely to encourage higher investment in housing projects and increase in disbursement of housing loans. Improvement in the business environment is also likely to boost the industry's growth. As evident, according to the Office for National Statistics (ONS), the total insolvencies in England and Wales decreased marginally by 0.5% year-on-year (YoY) during the first half of 2025.

The construction industry, over the remainder of the forecast period, is expected to record an average annual growth of 3.2% from 2026 to 2029, supported by investments in transport, housing, and energy projects. In June 2025, the government announced that it aims to invest over GBP35 billion ($45.1 billion) per year by 2035 to improve the country's energy infrastructure.

Also, the government launched a wind power strategy in July 2025, outlining 40 action plans to increase the wind power installed capacity from 16GW in July 2025 to 27-29GW by 2030. In line with this, in July 2025, the UK signed a GBP7.5 billion ($9.7 billion) agreement with Japan to invest in the country's clean energy and infrastructure, including offshore wind and hydrogen projects by 2035

Scope

• Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in the UK, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level with over 600 time-series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

• Outlook
• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/ff3t74

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.