Budget Jitters Impact Construction Forecasts
The construction industry is bracing for bad news, with total construction output now forecast to grow by only 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 previous forecasts of 4.0% and 7.0%, respectively.
- Infrastructure output is expected to rise, but at a slower rate due to decreased demand and increased costs.
- Commercial new build offices have also seen a slowdown in activity since the Spring.
House builders highlight that demand and affordability remain significant challenges, particularly in areas with higher house prices. In more affordable regions, site viability is a major concern due to additional costs imposed by the government.
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.