DampHub News, 20th June 2025
There’s finally light at the end of the tunnel for the UK’s struggling construction sector. According to the latest Glenigan UK Construction Industry Forecast (2025–2027), housebuilding is on track for strong and sustained growth, despite a shaky start to the year.
From stamp duty-driven spikes to favourable lending conditions, the report paints a promising picture of the housing market’s future, with real benefits expected to trickle down to homeowners, renovators, and property investors alike.
🏘️ Housing Starts Already Picking Up in 2025
The report highlights a notable rise in private housing starts in the first four months of 2025. While a brief slowdown is predicted in Q2, experts are calling it temporary. Growth is expected to rebound in the second half of the year, backed by improving consumer confidence, rising household incomes, and falling mortgage rates.
This early boost was also influenced by the April 2025 stamp duty changes, which encouraged buyers to complete purchases ahead of tax increases, creating a momentum spike in Q1.
📊 Construction Sector Forecast:
Glenigan’s forecast outlines a clear upward trend in sector-wide activity:
- +3% growth in 2025
- +10% in 2026
- +11% in 2027
Within that, private housebuilding is expected to reach an 18% increase by 2027. This growth is tied to improving economic conditions, new planning reforms, and renewed investor interest, both public and private.
Why This Matters to Homeowners and DampHub Readers
A housing boom doesn’t just mean more new builds—it signals:
- Greater demand for insulation, ventilation, and damp prevention
- A more competitive market for home upgrades and energy retrofits
- More incentive for councils and developers to prioritise warm, mould-free housing
If you’re planning any renovations, upgrades, or property purchases in the next 12–24 months, this is the time to prepare. Construction capacity may tighten as demand increases.
What’s Driving the Boom?
According to Glenigan, the construction upturn is being driven by:
- Rising real incomes – giving households more spending power
- Lower interest rates – making mortgages and home loans more accessible
- Improved economic outlook – reducing uncertainty for developers
- Planning system reforms – unlocking more development land
- Government commitment to upgrades – following the Spring Budget’s building initiatives
The combination is expected to benefit both new-build schemes and homeowners looking to invest in property improvements.
💬 Expert View from Glenigan
He also highlighted government spending as a positive signal to the industry, with earmarked projects ranging from large-scale infrastructure to smaller regional schemes.
🌍 Caution Around Global Factors
The report does caution that geopolitical risks—like global tariffs and trade disruptions—could affect investor sentiment and material costs. However, the UK’s relatively mild response to US tariffs may give its construction sector a competitive edge in the short term.
Final Thoughts for DampHub Readers
If you’re in the middle of planning a renovation or damp-proofing project:
- 2025 may offer better access to contractors before demand surges
- You could benefit from lower financing costs if you act sooner
- Expect an uptick in local and national investment in housing standards and insulation
📌 Stay ahead of the boom — prepare your property for long-term growth, comfort, and moisture control.
👉 Read the full Glenigan UK Construction Forecast (2025–2027) for sector-by-sector breakdowns.
