The state of the construction market in the UK

The UK construction sector has entered 2026 facing an uneven recovery. After a promising start to 2025, activity slowed significantly in the second half of the year, with new build output declining even as the pipeline of future work continued to grow.

Affordability pressures, regulatory complexity, and delayed investment decisions are slowing the conversion of projects from planning to delivery, particularly in the residential sector. At the same time, other parts of the market—including commercial development and infrastructure investment—are showing early signs of renewed momentum.

The Spring 2026 Arcadis UK Market View examines the forces shaping the UK construction market, from shifts in sector performance and regional activity to emerging cost pressures and long-term infrastructure investment.