The UK construction sector is on a strong upward trajectory, driven by high demand in key areas, including rail, office space, and education.
Government investments and ongoing infrastructure projects are fuelling growth, particularly in the transport sector, which has been a key focus of the infrastructure pipeline, unlocking hundreds of major projects worth around £530 billion over the next 10 years, with significant upgrades and expansions already underway.
Railway projects like the £1.75 billion Midlands Rail Hub and upgrades to major transport corridors, such as the £2.5 billion East West Rail linking Cambridge and Oxford, are a key part of this growth, with construction starts predicted to rise by 17 per cent next year and further 15 per cent in 2027 in the coming years.
Similarly, office construction is on the rise, spurred by the need for modern workspaces in major cities.
This is reflected in an expected 13 per cent increase in office project starts in 2026, following a 16 per cent rise this year reaching £2 billion.
Cities like Manchester, Leeds, and Birmingham are seeing significant office projects, with notable schemes like the £140 million Colloco St John’s office in Manchester.
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Meanwhile, the education sector is seeing unprecedented investment, with the government committing more than £2.4 billion to the School Rebuilding Programme, aimed at revitalising more than 500 schools over the next four years.
Rebuild projects accounts for nearly 70 per cent of education-related construction activity and comes in addition to the government’s pledge to deal with the RAAC, concrete-related problems in schools.
The £85 million rebuild of the Outwood Academy in Ashfield is one of several projects currently underway, with education construction expected to grow by 15 per cent next year, followed by a further four per cent in 2027.
The combined demand across rail, offices, and schools is driving an optimistic outlook for UK construction, with the sector expected to continue its upward trajectory over the next few years.
The results, which come from the latest Glenigan data, indicate a promising, albeit slow, recovery in construction activity, with a modest three per cent increase in project starts in the three months to November, although performance still lags four per cent behind 2024 levels, based on pre-Budget activity.
Glenigan’s economics director, Allan Wilen said: “The chancellor’s recent statement will have gone some way to reassuring contractors and subcontractors that the government remains committed to the various capital projects and upgrades it promised earlier in the year.
“There will be industry-wide fingers-crossed that this materialises into concrete funding so shovels can be committed to the ground in earnest.
“All this going to plan will bear out the predictions we made last month in our Autumn Forecast, which indicates growth returning to UK construction in 2026 and 2027.”
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