PwC’s Construction and Housebuilding Outlook provides a quantified perspective on UK construction expenditure, highlights sectoral growth drivers, and offers insights on key topics for 2026, including strategies for positioning for success. After two years of contraction, the sector returned to modest growth in 2025, primarily driven by public investment in health, education, and infrastructure, while private housing and commercial activity remained subdued. Although activity stabilised rather than rebounded, improving financing conditions supported this positive turn. Growth in 2026 is forecast to remain measured as private sector confidence recovers, with residential construction strengthening gradually but limited by affordability constraints. Commercial construction is expected to improve at a slower pace due to cautious investor sentiment and subdued development pipelines. From 2027 onwards, large-scale infrastructure programmes in energy, water, and defence are anticipated to propel broader sector growth, becoming increasingly visible towards the end of the forecast period.
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