As we approach 2026, the UK construction sector is gearing up for a year that looks both busy and strategic. After a challenging couple years, recent forecasts from industry forecasters and government sources paint a picture of steady growth across most major segments of construction. If you are involved in hiring, planning, or building a career, understanding these trends helps you make better decisions and seize opportunities.

Here’s a breakdown of what the numbers suggest for 2026, and why it matters for the industry.

Overall Growth on the Cards

According to forecasts from Experian, total UK construction output is expected to grow by around 3.4% in 2026, up from growth projected in 2025. Residential and industrial sectors are helping drive this trend, supported by repair and maintenance work and public projects.

The Construction Products Association also predicts output growth in 2026 of around 3.7%, showing a broad consensus that the sector is heading into a positive phase.

Housing Sector Leads the Charge

The housing market is set to be one of the biggest contributors to growth in 2026. Forecasts indicate private housing output growing by around 4% to 7%, with demand for new homes driving sustained activity.

This aligns with broader government goals to increase housing delivery, even amid economic challenges. Developers and housebuilders are positioning themselves for continued demand, particularly for starter homes and urban developments.

Repair, Maintenance and Improvement (RM&I) Still Strong

The RM&I segment, covering everything from home renovations to commercial property upkeep, is also expected to see growth. Forecasts suggest 2.5% to 3.0% growth in 2026, showing that even older stock and existing property enhancements remain a key part of the construction picture.

For contractors and subcontractors, this sustained demand means opportunities beyond new builds, especially in retrofit, refurbishment and tenant upgrades.

Infrastructure and Industrial Output Trends

Infrastructure growth is predicted to be about 1.9% in 2026, with utilities, transport and energy projects maintaining momentum.

Private industrial output; which includes warehouses, distribution centres and manufacturing spaces, is also expected to expand, possibly by around 4.1%.

These figures reflect ongoing investment in key projects like transport upgrades and supply chain facilities, areas that are important for regional growth across the UK.

Public Non-Residential Projects

Public non-residential construction such as schools, hospitals and community facilities, is forecasted to grow modestly next year. Predictions suggest around 3.7% growth, showing that public sector demand continues despite broader economic headwinds.

This segment is often a stabilising force in the industry, providing steady workloads even when private investment fluctuates.

Economic Context Matters

It’s not just construction-specific forecasts you need to watch. Broader UK economic data suggests GDP growth of around 1.75% in 2026, which supports continued overall activity in construction.

However, it’s worth noting that the wider economic picture has challenges too. Some predictions point to slower private sector activity and weak business confidence, but public investment and infrastructure spending remain key growth drivers.

What This Means for Employers and Workers

These numbers suggest that 2026 will be a year of sustained, broad-based activity rather than boom times, and that’s good news for long-term planning.

For employers:

• Know where the growth is strongest so you can secure talent early.

• Prepare for opportunities in housing, RM&I, industrial builds and public projects.

For workers:

• Skills in housing delivery, retrofit projects, and infrastructure will be in demand.

• Adaptability and multi-sector experience could give you a competitive edge.

The data points towards consistent output growth in 2026, with housing, repair and maintenance, infrastructure and industrial segments all contributing. This paints a picture of an industry that may not be booming, but is certainly active and resilient.

We help employers and professionals navigate these trends with confidence, connecting the right people with the right opportunities so construction output can stay on track.

Let’s build something strong together in 2026.