‘Solid revival’ expected by 2027 as conditions improve

Private housebuilding is expected to rebound 13% in 2027 and by 5% in 2028, despite experiencing a disappointing start to 2026 after a lacklustre second half of 2025.

The figures, from Glenigan’s Spring/Summer 2026 Construction Forecast, show that although private construction will be down 5% this year, it is set for what the company calls ‘a solid revival’ by 2027.

Glenigan says the growth will be driven by an expected decrease in borrowing costs coupled with improved consumer confidence. The loosening of regulatory bottlenecks and planning reforms should also help to stimulate supply, it said.

Revised figures after impact of Middle East conflict  

The construction sector as a whole is set to rebound by 13% between 2026-2028 as conditions improve, the company says. Glenigan’s figures have been revised from its end-of-2025 forecast when the company had predicted a relatively stable 12 months with modest recovery.

Glenigan’s economics director, Allan Wilen, said: “It’s been a turbulent few months for the UK construction sector, with investors and developers reassessing and rescheduling planned projects. However, the economic outlook is expected to improve once the current fog of war dissipates, supporting a strengthening in construction activity from 2027 with an uplift across almost all private and public sector verticals.

He continues, “As our forecast shows, there are some particularly exciting growth areas as Government funding is released and investor appetite starts to return to the market. Contractors will need to be quick off the mark as more favourable conditions are finally felt. There will be no time for hanging around and the quicker the sector’s reaction, the sooner momentum will return and stick.”