{"id":166818,"date":"2026-10-21T09:57:55","date_gmt":"2026-10-21T08:57:55","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=166818"},"modified":"2026-10-21T09:57:55","modified_gmt":"2026-10-21T08:57:55","slug":"uk-construction-market-stabilised-cost-pressures-uncertainty-persist","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/uk-construction-market-stabilised-cost-pressures-uncertainty-persist\/166818\/","title":{"rendered":"UK construction market has stabilised, but cost pressures and uncertainty persist"},"content":{"rendered":"

The UK construction market has recovered from the 2020-2023 downturn, but the growth outlook remains subdued and varies by sector, according to a new report from McBains<\/a><\/h2>\n

The consultancy\u2019s latest industry report says competitive tendering is helping constrain price growth, but the UK construction sector still faces uncertainty from geopolitical developments, energy costs, volatile material prices, and persistent labour shortages.<\/p>\n

The report says construction output is expected to grow by 1.8% in 2027, then 2.8% in 2028, before moderating to 2.3% in 2029 and 2.1% in 2030.<\/p>\n

Residential and commercial will recover more selectively<\/h3>\n

Infrastructure, defence, healthcare, data centres, and public sector capital expenditure are expected to support growth over the next five years.<\/p>\n

However, residential and commercial development is likely to recover more selectively, with affordability pressures, planning constraints, financing costs, and increasing regulatory requirements continuing to affect project viability.<\/p>\n

Colin McCaffrey, director at McBains and leader of the team which produced the report, said: \u201cThe UK construction market is entering a more stable period beyond the disruption experienced between 2020 and 2023, but it is far from business as usual.<\/p>\n

\u201cCompetitive tendering is helping constrain price growth, but the industry still operates against elevated energy costs, labour shortages, and persistent pressure on materials, affecting project viability and delivery.\u201d<\/p>\n

He added: \u201cWhile there are challenges to contend with, there are also opportunities. Over the next five years, we expect infrastructure, defence, healthcare and data centres to offer important opportunities for the sector, alongside growing demand for retrofit, as building owners look to improve energy performance with pressure to meet sustainability objectives and protect the long-term value of their assets.<\/p>\n

\u201cProjects that are well funded, properly planned and supported by a robust delivery strategy will be best placed to navigate the uncertainty facing the industry. With programme delays increasing exposure to inflation, supply chain risks and market repricing, it is essential to get design approvals, procurement and delivery milestones right.\u201d<\/p>\n

Main highlights of the report<\/h3>\n

Highlights of the report include:<\/p>\n