UK construction industry set for growth despite 2024 challenges

Posted on September 9, 2024   |  

The UK construction sector is predicted to grow by 2.9% in 2025, overcoming challenges like high interest rates and cautious investment.

Repair and Maintenance (R&M) has remained strong since 2021, consistently outperforming new construction, and this trend is expected to continue in 2024.

In 2024, new construction in residential, commercial, and industrial sectors has faced setbacks.

The private housebuilding sector has been hit hard by high mortgage costs and rising prices for building materials, products, and labor.

A better outlook for housebuilding is expected in 2025, with government housing targets, lower inflation, and improved interest rates making homes more affordable.

Residential sector spending is forecasted to grow by 7% in 2025, supported by these improved conditions.