What Will Shape the UK Construction Industry Over the Next Decade? 5 Key Drivers to Watch

The UK construction sector is entering a pivotal decade. From net zero commitments to a surge in digital tech, the way we design, build, and manage our spaces is changing fast. For contractors, developers, recruiters, and suppliers alike, understanding the major forces driving the industry is essential.

Here are five key trends that we expect to shape the construction landscape from 2025 to 2035.

1. Net Zero and the Push for Greener Building

With the UK targeting net zero carbon emissions by 2050, construction will be under increasing pressure to adopt sustainable practices. Low-carbon materials, modern methods of construction, and smarter energy use will become the norm.

Example: The Forge, London
This is the UK’s first net-zero commercial office building (verified using the UKGBC framework), built using a platform-based approach to design and offsite construction. It sets a benchmark for low-carbon urban development.

Example: EnerPHit Retrofit of Wilmcote House, Portsmouth
An award-winning refurbishment of a 1960s tower block to meet Passive House standards, drastically reducing energy use and fuel poverty.

2. Technology Changing the Game

Digital tools and automation are starting to transform construction workflows — from design and planning to delivery and maintenance. Over the next decade, we’ll see broader adoption of things like BIM, AI, drones, and even 3D printing.

Example: HS2 and BIM Integration
The HS2 rail project is using 5D BIM modelling and digital twins to monitor cost, time, and design in real time, setting new standards for infrastructure delivery.

Example: House of the Future by Project Etopia
A modular, smart home development using IoT and offsite construction to create homes that are energy-efficient, connected, and built in weeks, not months.

3. Skills Shortages and Workforce Change

A lack of skilled labour is already being felt across the sector. As older workers retire and immigration patterns shift, the industry must find new ways to attract and train talent.

Example: Construction Talent Retention Scheme (CTRS)
Launched to help workers displaced by the pandemic, this initiative connects skilled individuals with new employers and retraining opportunities — a key part of bridging the skills gap.

Example: Construction Industry Training Board (CITB) and Go Construct
Campaigns to encourage young people, women, and career-changers into construction, helping address diversity and future talent shortages.

4. Investment in Infrastructure and Urban Regeneration

Government-led investment and private-sector funding are driving a wave of regeneration and infrastructure projects across the UK. Housing, transport, and smart cities will continue to be growth areas.

Example: The Lower Thames Crossing
A £9bn project to ease congestion and connect communities in the South East, creating thousands of jobs and long-term infrastructure benefits.

Example: Manchester's Victoria North Regeneration
A £4bn development to deliver 15,000 new homes across seven neighbourhoods — one of the largest urban regeneration projects in the UK.

Example: Retrofit Accelerator – Homes (London)
A GLA-backed programme focused on improving the energy efficiency of social housing stock, expected to scale retrofitting activity significantly.

5. Regulation and Building Safety

Stricter building regulations and heightened focus on safety are reshaping how projects are designed and delivered. In particular, residential high-rises and public buildings are under increased scrutiny.

Example: The Building Safety Act and Gateway Regulations
Introduced in response to the Grenfell tragedy, these laws impose stricter rules on high-rise residential buildings, including mandatory safety case reviews and clearer accountability for duty holders.

Example: Government Cladding Remediation Schemes
Ongoing national efforts to remove unsafe cladding materials from residential buildings — a programme that continues to influence design choices and material specifications across the sector.

In Summary

The 2025–2035 period will likely be one of the most transformative decades the UK construction industry has seen. With major investments, regulatory reform, and climate goals all in play, the businesses that adapt fastest — and invest in people, sustainability, and innovation — will be the ones that lead the way.

Whether you're working on the tools, in the boardroom, or behind the scenes, staying ahead of these trends will be key to long-term success.