Budget Jitters Impact Construction Forecasts
Construction output growth forecasts have been revised downward to 1.1% in 2025 and 2.8% in 2026, from previous predictions of 1.9% and 3.7%, respectively.
- Private housing output is now forecast to rise by 2.0% in 2025 and 4.0% in 2026, down from previous forecasts of 4.0% and 7.0%.
- Infrastructure output is expected to rise by 1%, with firms reporting slowed activity since Spring, particularly in private housing, infrastructure roads, and commercial new build offices.
House builders cite demand and affordability as major challenges in areas with high house prices, while site viability is a key issue in more affordable areas due to additional government costs.
Demand and affordability remain the biggest challenges in areas of the country where house prices are higher.
Author's summary: Construction growth forecasts have been revised downward due to budget concerns.