Glenigan forecasting strong economic growth for UK Construction 2025 - 2027

The latest Glenigan Construction Industry Forecast has just been released with an optimistic outlook. Having stalled throughout the second half of 2024, the expectation is the for the UK economy to return to growth with an acceleration expected in the second half of this year.

Whilst above inflation wage increases, lower interest rates and improving consumer confidence are forecast to lift the housebuilding sector of construction, rising business and public sector investment will take longer to gather momentum. They are expected to provide increased support to construction from 2026.

Aside from the growth forecast in private housing, key sector highlights include a progressive rise in the office sector over the next three years. Growth is forecast at 14% in 2025 and a massive 23% in 2026, as office-based employment is set to grow.

Social housing is set to grow 3% in 2025 but then 8% and 11% in 2026 and 2027 whilst retail which looks to be in decline this year, looks set for huge growth in 2026 by 17%