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Building Construction in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

John Griffin John Griffin London, United Kingdom Last Updated: June 2025 SIC UK-F41

Revenue

£1.3tr

2025-26

£1.3tr

Past 5-Year Growth

Profit

£XXX.Xbn

Employees

5m

Businesses

2m

Wages

£XXX.Xbn

Building Construction in the UK industry analysis

Building contractors and developers depend on various socio-economic factors, including property values, underlying sentiment in the housing market, the degree of optimism among downstream businesses and credit conditions. All of these drivers typically track in line with economic sentiment, with recent economic shocks spurring a difficult period for building contractors and developers. Nonetheless, the enduring need for building services, particularly to tackle housing shortages across the continent, ensures a strong foundation of work.

Trends and Insights

  • Government support is key to overcoming challenging economic conditions. After relying on government support during the pandemic, building contractors are once again leaning on government intervention to spark life into sluggish property markets.
  • The housebuilding sector sees a decline amid rising costs. Spiralling construction costs and a slowdown in house price growth have led to a fall in the number of residential building permits being issued.
  • Building construction is dominated by small-scale contractors and developers. Most contractors operate in regional markets, focusing on a specific type of construction or development.
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Top Questions Answered in this Report

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What is the market size of the Building Construction industry in the United Kingdom in 2025?

The market size of the Building Construction industry in the United Kingdom is £1.3tr in 2025.

How many businesses are there in the Building Construction industry in the United Kingdom in 2025?

There are 2m businesses in the Building Construction industry in the United Kingdom, which has grown at a CAGR of 3.4 % between 2020 and 2025.

Has the Building Construction industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Building Construction industry in the United Kingdom has been growing at a CAGR of 3.5 % between 2020 and 2025.

What is the forecast growth of the Building Construction industry in the United Kingdom over the next 5 years?

Over the next five years, the Building Construction industry in the United Kingdom is expected to grow.

What does the Building Construction industry in the United Kingdom include?

Residential building construction and Building project development are part of the Building Construction industry in the United Kingdom.

How competitive is the Building Construction industry in the United Kingdom?

The level of competition is low and steady in the Building Construction industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Eurocodes are the uniform building standards for all EU countries. Eurocodes and other national-level building standards guarantee that buildings are designed and constructed robustly and safely.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Building Construction in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Major European construction markets tackle the full force of inflationary pressures. The UK and Germany are experiencing the most significant cost increases.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Building Construction in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

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