Budget Jitters Impact Construction Forecasts
Construction output is now forecast to grow by 1.1% in 2025 and 2.8% in 2026, down from previous predictions of 1.9% and 3.7%, respectively.
- Private housing output is forecast to rise by 2.0% in 2025 and 4.0% in 2026, revised down from 4.0% and 7.0%.
- Infrastructure output is expected to rise by 1%, with firms reporting slowed activity since Spring, particularly in private housing, infrastructure roads, and commercial new build offices.
House builders highlight demand and affordability as the biggest challenges in areas with higher house prices, while site viability is a key problem in more affordable areas due to additional government costs.
Demand and affordability remain the biggest challenges in areas of the country where house prices are higher.
Author's summary: Construction forecasts plummet due to budget jitters.