Private housebuilding is anticipated to quite prominently contribute towards UK construction sector growth of more than a fifth in the next two years.
The data from Glenigan goes on to reveal that the UK construction sector growth is anticipated to see a growth of 21% in the next two years.
As per its UK Construction Industry Autumn Forecast 2026-2027 report, the construction analyst opines that it forecasts the private housebuilding to stay on course to progress quite significantly. It also foresees certain commercial office projects continuing their rise.
The economic unit of Glenigan forecasts a 13% boost in terms of activity and suggests that the sector is going to be relieved at the limited negative effect of trade wars and international conflict, as well as policy speculation on construction.
It adds the sector is surely going to be in a good position to start the activity following the forthcoming Autumn Budget.
Allan Wilen, the Glenigan economic director, said that as would happen with any forecasts, it is quite challenging to foresee any unpredicted and spontaneous political as well as economic issues till the time they suddenly land, mostly completely altering the situation.
The will-they-or-won’t-they attitude that the professional as well as consumer landscape has taken towards the trailer government policy has gone on to do nothing so as to inspire confidence in the latter half of 2025.
This has cropped up due to the dramatic performance decreases they have seen all across their own indexes ever since the summer, therefore dashing any hopes in terms of recovery by the end of 2025.
He adds that, however, the chancellor has got a real opportunity in this budget to go ahead and rebalance this situation and also make sure that the beginning of 2026 is not the false start they went on to witness in the spring of 2025.
Glenigan opines that it foresees growth when it comes to both private as well as public sector project starts, with residential construction getting back to its positive numbers post a blip in the summer and also autumn.
As per the report, when it comes to the public space, the government is going to be hoping to kickstart many capital projects, specifically in terms of renewables, and at the same time deliver on the social housing commitments and also promised increases when it comes to funding for health as well as education.  With a more broadened view, a renewed commitment so as to deliver net zero throughout the state-owned assets by 2050 is going to present enough opportunity for the contractors and, along with them, the subcontractors too in order to seize on.
The report adds that when the building safety regulator goes on to reduce its well-documented backlog, it goes on to warn that the bricks-and-mortar retail is going to be slower to recover since the operators go on to face rising cost pressures from the national insurance increase as well as growth in the minimum wage.
The report further opines that looking towards the public space, the overall construction industry is sure going to be waiting with bated breath to witness what the chancellor is going to pull out of the hat when one talks of the Autumn Budget.
After what looks like a series of false starts, everyone is going to be looking for clarity, especially in areas like health as well as education.
Although the Labour government has gone on to grow the capital funding for the school rebuilding program and further education in the 2025-26 period, it notes, the previous uncertainty looks like it has disrupted the local authorities’ plan of development, therefore leading to a dip in the value of school as well as college project starts in 2025.
Glenigan forecasts that a clearer funding pipeline is going to boost activity throughout the construction sector in 2026 as well as 2027, with some robust growth forecast when it comes to further education since the government goes on to prioritize vocational training.
It is worth noting that a progressive rise when it comes to the water industry activity is expected to lift the utility starts throughout the 2026 and 2027 season, as the AMP8 investment program goes on to gather more momentum.
Wilen remarked that there are certain very encouraging indications already throughout different verticals, and it is going to be up to the sector to take advantage of them.
When it comes to some of the cases, that might as well mean diversifying to go ahead and meet more niche demands surrounding low-carbon construction and also commercial fit-out and even different building approaches for that matter.
He adds that while they happen to be experiencing short-term struggles, they are still confident of a long-term picture that looks bright.