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, a revision down from the previous forecast.
- Infrastructure output is expected to rise, but firms are reporting slowed activity since Spring.
House builders highlight demand and affordability as major challenges, particularly in areas with high house prices.
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.