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Total construction output is forecast to rise by 1.9% in 2025 and 3.7% in 2026, matching projections from Spring.
The Construction Products Association is forecasting that total construction output will rise by 1.9% in 2025 and 3.7% in 2026, matching projections from its Spring Forecasts.
The growth drivers will be private housing new build, private housing repair, maintenance and improvement (rm&i) and infrastructure.
Private housing output is forecast to rise by 4.0% in 2025 and 7.0% in 2026. Smaller house builders have seen an improvement in demand, but site viability remains challenging, given the numerous costs that the government continues to add to house builders.
In private housing rm&i, activity continues to be supported by government-subsidised energy-efficiency programmes, predominantly for heat pumps and solar photovoltaics, as well as a stream of fire safety remediation work. Outside of this, general home improvement activity remains subdued. Overall, private housing rm&i output is expected to rise by 2.0% in 2025, with any growth at the backend of the year, followed by 3.0% growth in 2026.
Infrastructure activity continues to remain strong on major projects such as Hinkley Point C and HS2, with water & sewerage as well as energy generation and distribution also set to become key drivers of growth next year.
CPA Head of Construction Research, Rebecca Larkin, said: “The key fundamentals for the construction industry remain largely unchanged. Although everything continues to point towards the gradual growth in construction activity gathering pace over the rest of this year and in 2026, the only thing that has changed is the uncertainty.”
