Turning challenge into opportunity

There are, however, signs of progress. The government confirmed its plans to invest in infrastructure in the latest Spending Review, with the 10 year infrastructure strategy and related pipeline providing much-needed clarity and assurance. It has also proposed changes to planning rules to speed up housing development. But these changes are taking time, and their effects are not yet visible.

Some big programmes, such as the New Hospital Programme, are under way. But most are working to long timelines, meaning that the impact on the construction sector is yet to be fully felt.

Now, attention turns to the Autumn Budget. With current fiscal rules under pressure, change is expected. This may include tax rises, which could affect consumer confidence. This in turn could impact housing demand and slow development.

Many investors remain cautious. Financial pressures, including high interest rates, are making it harder to take bold decisions that would drive long-term growth.

Still, construction is holding strong. In the second quarter of 2025, UK GDP grew by 0.3%. This is a slower pace than the 0.7% rise recorded in the first quarter, reflecting broader economic headwinds. Yet construction remained a key contributor, with output increasing by 1.2%. This reinforces the sector’s resilience and its position as one of the most productive parts of the UK economy.

For those who are ready to act, this is a window of opportunity. Contractors are available. Material prices, which previously surged, have now stabilised and are in some cases lower than last year. Energy costs are lower and steady. In many ways, this is a good time to build.

But taking advantage of these conditions means being flexible and open-minded. Engage with the market early. Explore new ways to procure contractors and materials. Work with a wider range of partners.

With careful planning and strong analysis, today’s risks can be managed. And future rewards can be secured.

The full impact of today’s changes will take time to emerge. But by 2027, the landscape will likely look very different. Now is the time not just to react, but to prepare.