Trends in Construction and Real Estate in UK 2025


The major concern for the UK property and construction sector, as with any other industrial sector of the UK, is the tedious doubtfulness brought on by Brexit paradigm.

Despite concerns over global economic growth, the UK will get some assistance from the global economic outlook across 2019.

Whilst, conventionally, these risks and are indicators of a downfall in the property and construction sector, although an inevitable global downfall seems to appear unlikely, even amidst the UK’s extraordinary ongoing political scenario.

Now the pertaining crucial question is that how is the property and construction sector responding to these challenges. It is pertinent to note:

  • The UK house price growth has pacified from a peak which it had reached three years ago. Although the annual rate of change remains in the positive.
  • Price growth across the UK is estimated to be 14.2 % cumulatively between 2018 and 2022.
  • In London, price growth over the next five years is expected to be around 13%, although prices are anticipated to dip this year.
  • UK rental growth is expected to be 14% between 2018 and 2022.

There are majorly five factors at execution as far as the real estate sales market is concerned at present:

  • Demand-Supply equilibrium – first and foremost, the equilibrium between buyer demand and the supply of houses being put up for sale which varies across the country. The rise in demand pushed by stronger economic growth in addition to low stock levels is a price growth contributor.
  • Impact of stamp duty – Secondly, stamp duty remains a curb on transactions. However, in prime central London, some parts of the market are moving forward into positive price growth for the first time in nearly two years. The trend is becoming specifically plausible in spheres where lower prices more fully reflect higher stamp duty expenditure.
  • North/South divide –On a more geographical basis, the North/South divide in price growth has narrowed, along with the Midlands, East of England and Northwest witnessing stronger growth and activity levels than the conventional property powerhouses of London and the South East, though large discrepancies in capital values exist.
  • Brexit and interest rates – The sectoral market’s political and economic mood sentiments are the dual tendencies of Brexit instability and future interest rate is in a hike. Brexit will continue to create doubtfulness in the short-term. And while interest rate goes up then it will push up mortgage rates, the rates payable on home loans will exist near historic lows in the short to medium-term.
  • Surging affordability –Finally, and perhaps one of the biggest elements in the market at present is the surging affordability compressing in some parts of the country –these will measure on pricing. In the letting markets, rental growth has been slowing for a year. However, as with the sales market, rental performance is dependent on the type of property as well as its location.

Construction Sector Trends:

Construction is a sector where Britain holds a strong competitive edge.  It is also a sector with considerable growth opportunities, with the global construction market forecast to accelerate over by 70% in the year 2025.

The UK government vision for the construction sector 2025 published as a partnership in 2019 in the construction department is described herewith:

  • People: An industry that is known for its talent pool and diversified workforce.
  • Smart: An industry that is efficient and technologically advanced.
  • Sustainable: An industry that leads the world in low-carbon and green construction exports.
  • Growth: An industry that drives growth across the entire economy.
  • Leadership: An industry with clear leadership from a Construction Leadership Council.


This vision forms the basis for the industry to exploit its strengths in the markets globally.

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