UK Construction Industry Update – April 2026

A lot of contractors we speak to are saying that workload is more predictable than it was a few months ago, which in itself is a step in the right direction.

After a fairly stop-start period, there’s been a noticeable easing in the rate of volatility that we saw through late 2025.

Tendering activity is ticking along, enquiries are more consistent, and clients are beginning to look further ahead again. That shift in mindset is often one of the first signs of stability returning.

Infrastructure is still doing the heavy lifting

If there’s one area that continues to hold firm, it’s infrastructure.

Power, utilities, and civils work are still providing a strong base of activity, particularly around:

• Grid and substation upgrades
• Energy transition projects
• Transport and rail infrastructure

These schemes tend to move more slowly but they are steady, and that consistency is helping balance out some of the weaker pockets elsewhere in the market.

For contractors in these sectors, there’s still a decent pipeline of work and importantly, long-term visibility that a lot of other areas don’t currently have.

Housing is steady

Housebuilding demand hasn’t gone away. A lot of schemes are steadily progressing, just in phases, with more emphasis on:

• Managing cost risk
• Delivering in controlled stages
• Focusing on quality and efficiency

Compliance changes are tightening things up

The recent CIS updates introduced in April have been one of the bigger talking points across the industry.

There’s definitely more scrutiny now around supply chain compliance, and while that adds a bit more admin into the mix, most businesses we speak to understand why it’s happening.

In reality, it’s pushing the industry in a better direction, more transparency, tighter processes, and fewer grey areas. For compliant contractors, it actually helps level things out a bit more.

Labour costs and workforce pressure

With the latest wage increases coming into effect, costs are understandably under more pressure. But at the same time, demand for good people hasn’t really eased off.

If anything, it’s highlighted again how important it is to have reliable labour in place and to plan ahead properly rather than react at the last minute.

We’re still seeing strong demand for:

• Skilled trades
• Site management
• Engineering and technical roles
• FM and maintenance staff

The challenge isn’t just finding people, it’s finding the right people quickly enough to keep projects moving.

Skills shortage still shaping the market

The skills gap is still very real, particularly in more specialist trades. But what’s interesting is how the market is responding to it.

More clients are now:

• Working with recruitment partners earlier in the process
• Investing more in retention rather than just replacement hiring
• Thinking longer term about workforce planning

That shift is helping reduce some of the pressure, even if the shortage itself isn’t going away any time soon.

Stability returning to the wider market

Outside of the obvious pressure points, there are areas that continue to perform steadily, especially fit-out, refurbishment, and facilities work.

These sectors tend to be more resilient anyway, but they’re also benefiting from clients choosing to refurbish and extend rather than commit to full new builds in uncertain conditions.

Growth is steady and consistent, which a lot of businesses value right now.