The construction industry will face near-term challenges including slow economic growth and persistently high interest rates. This is according to Glenigan’s UK Construction Industry Forecast 2024-2026 which does however expect the outlook to brighten as the forecast period progresses.

Glenigan suggests that the new Government, which has a substantial majority, is already reducing political uncertainty and rallying markets.

It goes on to say that policy decisions around construction projects will likely be made at a faster pace, boosting performance.

This signals recovery in the not-so-distant future, with a modest increase in project-starts predicted in the latter half of 2024 lifting starts by 3% this year. As the economy picks up further in 2025, Glenigan forecasts 7% growth, and 6% in 2026.

Commenting on the forecast, Glenigan’s economic director Allan Wilen says, “There are signs of growth, signalling a gradual recovery. For example, in the private housing sector, we anticipate starts will pick up in the latter half of this year, driven by improved affordability and brighter economic prospects.”