
It is fair to say that 2024 has had its challenges for the UK construction market, with the interest rate situation and the change in government leading to an unsettled situation. Thankfully, after catching up with a number of leading industry figures to get their predictions for the year ahead, the forthcoming 12 months are looking a lot more positive, even if there will undoubtedly be hurdles to overcome in the process.
Tom Wakeford, Managing Director at Stepnell.

“With the planned modernisation and decarbonisation improvements to the built environment, increased housing targets and the need for effective infrastructure, 2025 expects to bring strong cohesive growth across the regions in the UK and therefore presents opportunities for the construction industry as a whole.
“For us as a complete construction partner, improvements to infrastructure in line with regional local authority targets will be increasingly important across the public sector. As the topic of sustainability continues to become a common characteristic within industry projects, we expect that our bespoke Step Energy offering will see further uptake, allowing project teams to have the full scope of sustainable project improvements such as renewable energy management at their fingertips.
“The uptake in Step Energy acts as an example of an industry trend we will see continue into 2025, which is that many stakeholders are looking for project partners that offer a collection of expertise, from sustainability and delivery, as well as specific services, such as our joinery team – almost acting as a one stop shop, in support of effective use of time and funds.
“For regional based companies such as us here at Stepnell, we hope to see specific growth across these regions which for us now also includes our North-West presence, having recently opened our Liverpool office in response to growing demand in the area.”
Tony Higson, Managing Director at Grayson.

“Looking ahead to 2025, the outlook for the construction sector is optimistic. Most of our clients have strong pipelines in place, signalling a busy and productive year ahead. While the second half of 2024 has been somewhat sluggish, with projects being postponed or delayed, this seems to be setting the stage for a rebound in activity as we move into the new year.
“That said, one key challenge looming on the horizon is the anticipated rise in labour rates. While higher wages are a positive development for workers, they could put a squeeze on subcontractors. Many projects that have already been tendered and awarded are based on current labour rates, and with those rates expected to rise, margins will inevitably tighten, which could impact profitability and create pressure across the supply chain. Despite this, the overall momentum in the market suggests a promising year, and the sector will likely adapt to these shifts as it continues to recover and grow.”
Ben Harwood, Chief Executive of Naismiths and Edmond Shipway.

“As we look toward 2025, the construction sector is poised for a transformative period driven by innovation, sustainability, and resilience. We see three key trends shaping the industry.
“Firstly, digital transformation will continue to accelerate. Technologies like Building Information Modelling (BIM), digital twins, and AI-powered project management tools are no longer optional but essential for improving efficiency, reducing waste and managing risks. These tools enable better decision-making and collaboration across stakeholders, ensuring projects stay on track despite market uncertainties.
“Secondly, sustainability will remain at the forefront. As governments and clients push for net-zero goals, the demand for green construction practices and sustainable materials will surge. Modular and offsite construction methods will also gain traction, offering reduced carbon footprints and shorter build times.
“Lastly, the importance of resilience cannot be overstated. From navigating fluctuating material costs to addressing labour shortages, businesses must adopt agile strategies to remain competitive. Investment in upskilling the workforce and fostering partnerships will be crucial for driving long-term growth.
“2025 will be a year of challenges, but also immense opportunity for firms willing to innovate and adapt. By embracing change, the construction industry can build a future that is not only more efficient but also more sustainable and resilient.”
Stacey Hayes-Allen, Director of Corporate Partnerships at Arden University.

“The 2024 Construction Skills Network report highlighted that an additional 251,500 workers would be needed by 2028 to meet UK construction demand. This underscores the urgent need to address the sector’s widening talent gap.
“Apprenticeships, particularly degree apprenticeships, are a proven solution to this challenge, as they offer businesses a crucial pathway to upskill existing talent while fostering inclusion and innovation.
“At Arden University, we’ve seen first-hand how degree apprenticeships can transform workplaces. They enable employees to gain higher-level qualifications while applying their learning directly to real-world challenges, benefiting both learners and employers. Beyond addressing skills shortages, degree apprenticeships also enhance retention rates, ensure the ageing workforce is replaced with new talent, and support diversity goals – making them a strategic investment for long-term success.
“To maximise the potential of apprenticeships, construction businesses must prioritise structured support systems. A dedicated learning and development officer, clear alignment of apprentice roles with organisational objectives, as well as active involvement in training and development are all key steps to achieving this. Providing off-the-job training and creating opportunities for apprentices to engage with senior leaders will help ensure that apprenticeships deliver tangible value for individuals and organisations.
“Now is the time for the construction industry to embrace apprenticeships as a powerful tool to close the skills gap and build a workforce ready to meet the demands of the future.”
Stuart Nicholson, Roof Systems Director at Marley.

“Solar PV demand continued to see significant growth in 2024, propelled by various factors that are reshaping the construction industry.“
Revisions to Part L of the Building Regulations in 2023, alongside the upcoming 2025 Future Homes Standard (FHS), have driven widespread adoption of solar PV systems. Coupled with growing environmental awareness and rising energy costs, these changes have made solar PV an increasingly appealing and cost-effective energy solution, offering faster returns on investment than ever before.
“Solar PV installation is pivotal to the UK Government’s decarbonisation goals, creating a lucrative growth avenue for roofing contractors ready to diversify their offering.
“However, our 2024 UK ‘Solar Readiness’ Map highlighted the regional disparities in solar PV adoption, showing those leading the charge and those in need of more support. The East Midlands, Scotland and Wales emerged as leaders in solar PV readiness, with greater openness to solar PV adoption and a larger number of solar-trained installers ready to support demand. Whereas, London, the North-West and the North-East face a clear challenge. While solar PV openness in these regions is high, the limited availability of trained installers is restricting greater adoption.
“To bridge this gap, more roofing contractors should consider obtaining MCS certification to install solar PV systems. With solar technology central to improving energy efficiency and reducing carbon emissions, 2024’s progress sets the stage for continued growth in 2025, bolstered by the FHS and the ongoing push toward net-zero targets.”
Dr Mila Duncheva, Business Development Manager at Stora Enso.

“In 2025, construction firms will have to contend with continued economic headwinds, so need to get more for less in terms of materials and operations to maintain profit margins. Wood is well-placed to address these needs because of its potential for prefabrication and subsequent rapid assembly on sites. The floor of a building can be installed in a day, for example, while lightweight cranes can position it into place in a matter of minutes.
“In practice, prefabricated parts mean shorter project schedules. Schools and colleges can be built over the summer holidays, and large-scale factories can be erected during the winter months – such as The Plus / Vestre industrial building in Norway, which is larger than the White House, and whose timber structure was installed in 15 weeks starting in February where temperatures were as low as -25⁰C. In fact, results from mass timber developments point to a 30% faster construction time than with concrete. In addition to that, a high degree of prefabrication requires 50–70% fewer labourers than concrete on-site and lowers logistics costs with 80% fewer deliveries. This efficiency and cost-effectiveness combined, as well as its sustainable qualities, will serve to make 2025 the year of mass timber construction in the UK.”
Tristan Hughes, Business Unit Manager at OSSO.

“In 2025, we expect to see more construction sites required to monitor and record levels of phosphorus (P) and Per-and Polyfluoroalkyl Substances (PFAS) in their permitted discharges. PFAS, often referred to as ‘forever chemicals,’ persist in the environment and accumulate over time, posing risks to ecosystems and human health.
“Throughout 2024, we noticed a significant rise in enquiries referencing these substances in regulatory correspondence. While these contaminants can be treated at source using specialist equipment, companies that proactively plan for the necessary water treatment measures at tender stage can avoid costly disruptions later. A reactive approach, by contrast, risks budget overruns, delays, and non-compliance. Early planning with modular water management solutions, tailored to address everything from silts to hydrocarbons and PFAS, ensures sites remain compliant, on budget and on programme.”
Paul Goossens, Operations Manager at SafeSite Security Solutions.

“One of the biggest trends for construction sites in 2025 will be the growing risks driven by security and health and safety – and the rising role of CCTV to help tackle it.
“Climate change is resulting in wetter and warmer winters in the UK, leading to an increase in the ferocity of winter storms and an increased chance of flooding. This delivers significant risks on site – from downed fences and loose scaffolding to flying debris, blocked paths and falling roof tiles. It also adds to risks when sites are closed – making it an increasingly dangerous environment for intruders, who are often children looking for a thrill.
“The Met Office says there were a record 12 ‘named’ storms in the UK in 2023-24. Furthermore, the economic downturn could lead to an increased risk of theft and vandalism, especially on construction sites. An estimated 26% (409,000) of all business premises, in England and Wales, were a victim of crime last year, according to figures from the Home Office released in September 2024. The most prevalent offence type experienced was theft (14%), followed by burglary including attempts (8%) and vandalism (8%).
“The government’s desire to build homes on ‘grey belt’ land, such as former petrol stations, will lead to a greater number of construction sites in city centres where vandalism is a bigger problem. However, the desire to build on green belt land opens construction sites up to the threat of community protests. All these issues will see an increase in the popularity of CCTV, which is now replacing or supplementing human guards on many construction sites.
“CCTV is more cost effective and with the benefits of AI, it also reduces the number of false alarms on construction sites. CCTV can spot offenders in real time and can even monitor unseen areas of sites.
“New-generationCCTV allows for remote monitoring and 360-degree coverage, as well as a response protocol for service providers and keyholders. Modern cameras are also able to tell the difference between human and animal intruders – meaning fewer callouts. They can also provide clear footage even in low-light conditions, especially during the night.
“CCTV will be crucial to tackle the increased security and health and safety risks expected over the next year.”
Brian Sofley, Managing Director at ASSA ABLOY Opening Solutions.

“Construction in 2025 is poised to be shaped by cutting-edge technologies, sustainability efforts, and innovative practices which will transform the industry.
“At ASSA ABLOY Opening Solutions UK & Ireland Door Group, we are dedicated to leveraging advanced technologies, AI, and data-driven approaches to revolutionise construction. The evolution of building information modelling (BIM) has coincided with the tightening of building regulations within the industry, with emphasis currently placed on the Golden Thread approach.
“ASSA ABLOY’s Openings StudiosTM is more than a specification tool. It is an end-to-end seamless process, offering an auditable journey in support of the Golden Thread principles. Openings Studio TM offers traceability, accessibility, accountability, efficiency, and time-management, from design intent through to the fire door inspection scheme (FDIS) and after sales – a sole source of Truth Principles.
“As Dame Judith Hackitt stated in 2018: ‘Transparency of information and an audit trail all the way through the life cycle of a building from the planning stage to occupation and maintenance is essential to provide reassurance and evidence that a building has been build safe and continues to be safe’.
“At this moment in time, Openings StudiosTM is the only software to offer this, from Specification to Product in Service and beyond, capturing the Golden Thread of information in relation to doors and ironmongery, always ensuring door compliance, across all touch points.”
Jack Kidder, Responsible Business Manager at Henry Boot.

“As legislation evolves and market demands intensify, sustainability will remain a defining theme for the construction industry in 2025. It represents both one of the biggest opportunities and biggest challenges for the sector.
“The UK’s commitment to achieving net-zero carbon emissions by 2050, alongside interim targets such as the Future Homes Standard – which mandates a 75-80% reduction in carbon emissions for new homes from 2025 onwards, will sharpen the focus on sustainable building practices. As a result, we will see growing market demand for net-zero carbon buildings.
“For developers and contractors, this means increasing pressure to deliver projects with robust ESG credentials, while collaboration with supply chains will become even more vital in addressing Scope 3 emissions, such as those generated by material production and transport, and to ensure sustainable sourcing. For example, adopting technologies like material passports could help track and optimise the use of sustainable materials across the lifecycle of a project.
“Additionally, with the rise of circular economy principles, there will likely be an even greater emphasis on reusing and recycling construction materials to minimise waste. Contractors and supply chains will need to forge closer partnerships in order to address indirect emissions and ensure a more comprehensive environmental responsibility. In order to achieve this, education and engagement across all stakeholders will be key to aligning the industry on sustainability goals and best practices.
“Ultimately, these regulatory drivers, combined with growing public and investor scrutiny, will push the industry to innovate, adopt more green technologies, and further embed sustainability and social value as a core component of every project.
“At Henry Boot Construction, we are keen to lead by example, but it will take a collective effort from everyone in the construction ecosystem to truly rise to the challenge of true decarbonisation within the built environment.”
Jonathon Bentley, Managing Director at Bentley.

“With Labour’s plans to build 1.5m new homes over the next five years, 2025 alone will prove increasingly pivotal as wheels begin to be put in motion. It’s clear that the need for the effective development of strategic land will prove more important than ever in the support of this, and it’s our job here at Bentley to support project partners in overcoming common obstacles, in support of creating viable space for these housing schemes to come to life.
“The planning landscape is complex, with hurdles within the planning process set increase this further. 2025 will be a space for many across the infrastructure delivery market, within multiple sectors, to learn and develop understanding of the complexities in the journey to project completion. From somewhat constricting requirements for affordable housing on grey belt land, to the must have delivery of community infrastructure alongside developments plans, it will be pivotal for our industry as a whole to be getting the most bang for buck, and the base of this is having enough buck to begin with.
“Collaboration will be key in 2025, with the need for the Government to recognise the ‘master developer’ as pivotal for significant growth over the next year, especially with tight targets, particularly in relation to affordable housing.”
Chris Weathers, Commercial Director at Henry Boot Construction.

“Despite settling a little in recent months, the construction industry in 2025 continues to face multiple challenges driven by prolonged economic instability and external uncertainties.
“It’s been a decade marked by Brexit, government changes, a pandemic and inflation. This has left the sector grappling with an unpredictable landscape, making long-term planning difficult – not impossible, but difficult.
“With the Autumn Budget announcements putting increased financial pressure on businesses, the sector will need to prioritise innovation and collaboration. Sustained economic stability is what’s needed – without any environmental or geopolitical factors dictating the market – but this isn’t the current reality. Therefore, construction companies like us are learning to adapt quickly.
“Embracing innovation, fostering resilience through robust risk management, and driving efficiencies in project delivery are all set to be the top of the agenda for businesses next year, as a result. However, while many firms – and their clients – have been prioritising financial stability before fully investing in critical advancements such as AI and digital solutions, we believe 2025 is the year the sector starts to prioritise innovation once again.
“Businesses are increasingly realising that these solutions are needed, in order to future-proof against disruptions and meet evolving client and regulatory expectations. Therefore, in 2025, a careful balancing act will need to be achieved – embracing innovation whilst at the same time carefully managing costs.
“Since the new government has come in, the market does seem to have settled a little more, which is definitely positive and should provide us with both an opportunity and some breathing room to start defining the next era of construction.”