PwC Construction & Housebuilding Outlook H1 2026

The return to growth in 2025 was uneven across sectors. Growth was largely delivered by public spending in health and education, and infrastructure activity in energy and utilities. Private housing and commercial construction remained weak. Activity stabilised rather than rebounded, reflecting subdued private demand despite gradually improving financing conditions.

Looking ahead, growth in 2026 is expected to remain measured as private sector confidence continues to recover. Residential construction should strengthen gradually, though affordability constraints will limit the pace of expansion. Commercial activity is likely to improve more slowly, reflecting cautious investor sentiment and soft development pipelines. From 2027 onwards, multi-year infrastructure programmes, including in energy, water and defence, are expected to drive broader growth, which should become more visible toward the end of the forecast period.

This is our sixth edition of Construction and Housebuilding Outlook, providing a quantified view on the UK’s spend outlook and a summary of drivers by segment, as well as insight into topics of interest in 2026 and how to best position for growth in the sector.

Please contact Sam Edwards if you have any observations or questions.

^{The outlook reflects conditions at the time of publication, with ongoing economic and geopolitical uncertainty continuing to shape costs, supply chains and delivery dynamics across the sector. All forecast figures remain subject to change and are presented at 2025 constant prices.}