According to the latest Rics UK Construction Monitor, construction activity across Britain was largely flat in the final quarter of 2025, although forward-looking indicators point to a modest recovery in 2026.
Overall workloads showed little change in the fourth quarter, with the overall net balance improving slightly to -6%, continuing a prolonged period of subdued conditions across much of the sector.
Private housing construction activity weakened again in the fourth quarter, while private commercial and industrial workloads, despite marginal improvement, remained firmly in negative territory. Public housing showed some signs of stabilization, but overall continued to shrink.
Financial constraints and planning pressures remain the dominant headwinds facing the sector. About six in ten respondents cited financial constraints as a major barrier to operations, while planning delays were reported by a similar percentage. Credit conditions remain tight, although sentiment has improved modestly, especially in the 12-month outlook.
Commenting on the latest data, RICS Chief Economist Simon Rubinsohn said: “The latest results show little sign of a broad-based revival of activity in the construction sector, with respondents continuing to focus on challenges around planning and the building safety regime in particular, as well as viability-related issues. The forward-looking figures are slightly more positive, with workloads likely to increase, particularly in infrastructure, driven by a pronounced increase in energy generation and distribution activity, as well as water.
“However, any uptick in housing development is likely to be relatively modest and well short of what would be needed to get anywhere close to the 1.5 million homes target. While the passage of the Planning and Infrastructure Act is seen as helpful for housebuilders, it will not on its own be enough to meaningfully move the dial.”