How the UK Construction Sector Is Pulling in Big Investment in 2026 (and What It Means for Hiring)

If 2025 was about navigating cost pressures and subdued demand, 2026 is shaping up to be a year of renewed capital flow into the UK construction sector. Analysts are forecasting a return to growth in construction output, buoyed by public infrastructure spend, broad project pipelines and investor interest in long-duration work.

At Approach Personnel, we’re already seeing this shift through increased demand for mobilisation support, forward hiring plans and longer-term talent strategies from clients across civils, utilities, energy and regeneration sectors.

Below, we unpack why investment is climbing, where it’s landing, and what this means for skills and recruitment in 2026.

Why investors are leaning into construction in 2026

One of the biggest confidence drivers is long-term project visibility. The UK government’s Infrastructure Pipeline offers a ten-year view of major capital programmes across transport, energy, water, health, education and more, including billions in planned spending from public and private sources.

A stable, structured pipeline reduces uncertainty for boards and investors and supports multi-year funding commitments rather than last-minute short bursts. Early analysis suggests that private sector confidence is improving where public commitment is clear.

Even where challenges remain, such as rising input costs and labour pressures, improved investor sentiment and planned updates to key infrastructure programmes are often cited as reasons 2026 could be a turning point for the sector.

Where the money is landing in 2026

Across the UK, capital is flowing into multiple segments of construction activity, not just isolated pockets:

Infrastructure and civils
Large-scale transport, flood resilience, highways and utilities programmes continue to anchor the pipeline, providing demand for groundworks, bridges, tunnelling, roadworks and major enabling works.

Energy, grid and utilities
Energy sector investment—both in traditional networks and new energy transition projects is significant. For example, national regulators have approved sizeable investment into gas and electricity infrastructure to boost system reliability and future-proof capacity.

Regeneration and mixed-use development
Multi-billion-pound town-scale regeneration and housing programmes are breaking ground. Projects like the extensive new community development in Gilston, Hertfordshire, illustrate long-term development cycles with major infrastructure and social facilities attached.

Defence, industrial and secure facilities
With broader industrial policy increasingly linked to defence capability and advanced manufacturing, specialised facilities investment is supporting contractor pipelines in structural, M&E and specialised trades.

Strategic transport projects
Investment commitments such as the £45 billion Northern Powerhouse Rail programme illustrate how regional infrastructure ambitions are drawing capital flows outside of London and the South East.

The skills challenge: investment only works if you can resource it

While capital is flowing into construction programmes in 2026, delivery still hinges on people, especially skilled trades, site leadership and specialist commercial talent.

Industry outlooks continue to caution on workforce availability, with labour shortages remaining a key constraint. Skilled trades such as groundworkers, electricians and mechanical fitters are in short supply in many regions, and demand for supervisory and technical roles is intensifying.

On top of this, compliance expectations around competence, competence evidence, safety culture and dutyholder responsibilities are rising, meaning recruitment isn’t just about volume but verified quality and suitability.

What we’re advising clients to do now

Treat recruitment like procurement.
When project packages are being priced and planned, people plans need to be parallel, not reactive.

Lock in critical hires early.
Key leadership roles like Site Managers, Project Managers and QS teams often determine start-line readiness.

Build pipelines, not wishlists.
A talent bench with pre-qualified, reference-checked candidates ready to deploy rapidly saves time and cost.

Widen the net but maintain standards.
The best performers blend local talent pools with broader regional or national networks while keeping compliance and competence non-negotiable.

What this means for candidates in 2026

For high-quality candidates, the forecast is positive. With project volumes increasing, demand for:

• long-term assignments

• leadership roles

• apprenticeship-to-journeyman progression

• specialist technical skills

…is strengthening. However, employers will be sharper on documentation, competence evidence and reliability.

How Approach Personnel can help

We support construction businesses across both Trades & Labour and White-Collar hiring. If your 2026 pipeline is expanding and you want hiring to be a strategic advantage rather than a bottleneck, we’re ready to help you plan ahead. Call us today - 0115 9003 171