UK construction output to grow 21% over next two years
Private housebuilding is expected to significantly contribute to construction sector growth of more than a fifth over the next two years.
Glenigan’s data reveals construction output is expected to rise by 21% over the next two years.
In its UK Construction Industry Autumn Forecast 2026-2027 report, the construction analyst says it expects private housebuilding to remain on course to grow significantly. It also foresees commercial office project starts continuing their ascent.
Glenigan’s economic unit forecast a 13% boost in activity and suggests that the industry will be “relieved” at the limited negative impact of international conflict, trade wars and policy speculation on construction.
It says the sector will be in a good position to kickstart activity following next week’s Autumn Budget.
Glenigan economic director Allan Wilen said: “As with any forecasts, it’s difficult to foresee unpredicted and spontaneous political and economic issues until they suddenly land, often completely changing the situation.
“The ‘will they/won’t they’ attitude that the professional and consumer landscape has taken towards trailed government policy has done nothing to inspire confidence in the latter part of 2025.
“This is borne out by the dramatic performance decreases we’ve seen across our own indexes since the summer, dashing any hopes of recovery by the end of this year.
“However, the chancellor has a real opportunity within this Budget to rebalance the situation and ensure that a kickstart into 2026 is not the false start we witnessed in the spring of this year.”