At a glance
UK construction starts the year with flat growth overall, sharp housing and infrastructure declines, but pockets of strength in industrial, commercial and utilities work. 🏗️
The updated National Infrastructure and Construction Pipeline outlines £718bn of planned investment over 10 years and flags critical skills gaps for major programmes. 🚆
Affordable housing remains relatively resilient even as private housing starts slide, with Homes England reporting strong social rent delivery. 🏗️
UK-backed £746m port upgrades in Nigeria underline the role of export finance in keeping UK contractors engaged despite a slow domestic awards market. 💰
Labour shortages, regulation and cost pressure continue to weigh on outlook, but net zero, modular and digital tools are seen as key growth levers. 🌱
Today’s update: new data from Glenigan, Homes England and the government’s latest infrastructure pipeline sketch a sector caught between weak near-term delivery and a sizeable medium-term workload. Skills, regulation and planning risk are emerging as the main gatekeepers for turning a £718bn pipeline into actual output, particularly in housing and civils. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of the UK’s straining construction pipeline and workforce risks, Glenigan’s March 2026 Index adds fresh detail on where pain is biting now, with private housing starts down over a third year-on-year and infrastructure work off 40%, even as forecasts still point to modest output growth this year.
Building on recent warnings from the Institution of Civil Engineers and others about infrastructure delivery, the government’s updated £718bn National Infrastructure Pipeline now quantifies skills shortfalls in high-risk industrial, mechanical and electrical trades and introduces a dedicated unit to unblock planning on major schemes.
Returning to the theme of labour, skills and productivity constraints highlighted in this week’s commentary, today’s sector outlook notes an expected 240,000-worker shortfall by 2029 alongside tighter Building Safety Act and environmental compliance, sharpening the focus on modular and digital solutions as part of any realistic growth strategy.
Top 5 headlines
🏗️ Glenigan Index shows housing and civils dragging on 2026 construction outlook
Glenigan’s March 2026 Construction Index reports flat-to-minimal growth across most UK construction segments, with private housing starts down 22% quarter-on-quarter and 36% year-on-year, and infrastructure work falling 40%. Industrial and commercial new orders surged at the end of 2025 (industrial +100%, commercial +51%), while utilities work is up 33% quarter-on-quarter, helping to offset weakness in civils. Forecasts still point to 2.3%–3.7% output growth for 2026, contingent on government support for apprenticeships, affordable housing, digital tools and infrastructure strategy. This matters because it confirms a two-speed market where residential and civils are under acute pressure even as industrial, commercial and utilities pipelines remain comparatively robust. (Source: Glenigan March 2026 Construction Index)
🚆 Government sets out £718bn National Infrastructure Pipeline and new delivery unit
The UK government’s 9 March 2026 update to the National Infrastructure and Construction Pipeline covers 734 projects with £718bn of planned public and private investment over the next decade. Alongside project data and regional breakdowns, the update includes a new workforce and skills analysis highlighting shortages in skilled trades, particularly for high-risk industrial, mechanical and electrical expertise. A new infrastructure unit will be established to fast-track delivery by tackling planning issues more quickly. For the sector, this is a critical steer on where capacity, skills investment and bid strategies need to focus as projects move from policy to procurement. (Source: UK Government Infrastructure Pipeline Update)
🏗️ Affordable housing holds up as private delivery stutters
Latest context from early March shows continuing pressure on housing delivery despite government targets, with private housing starts down 22% quarter-on-quarter against a backdrop of tight mortgage lending and higher rates. Homes England data for 2024/25 records 38,308 housing starts and 36,872 completions, 79% of which are affordable tenures, with social-rent starts up 43% year-on-year, even as local authorities sit on more than £9bn in developer contributions. Post‑Budget 2026 sentiment points to a tentative housing market bounce-back on pricing and sales expectations, but capacity and finance remain constrained. This split market is key for developers, contractors and investors calibrating exposure between private-for-sale, affordable and build-to-rent pipelines. (Source: Homes England and industry market reports)
💰 UK backs £746m Nigerian port modernisation as domestic awards pause
With no major new UK domestic infrastructure awards reported on 18–19 March, a standout move is a £746m UK‑backed financing agreement to modernise Nigeria’s Apapa and Tin Can Island ports, due to be formally signed during President Bola Tinubu’s state visit to London. The scheme will upgrade key port facilities with UK participation, supported via UK export finance mechanisms. This underlines how overseas infrastructure and export-backed deals are becoming an increasingly important outlet for UK contractors and consultants amid a quieter home market. (Source: UK Export Finance announcement)
🌱 Skills, safety and net zero reshape the 2026 construction opportunity set
Sector-wide analysis for 2026 highlights labour shortages, material and employment cost inflation, and the regulatory impacts of the Building Safety Act and tightening environmental standards as core drags on delivery. The industry faces a projected 240,000-worker shortfall by 2029, while sustainability and net zero targets are driving demand for green infrastructure, energy retrofits and embodied carbon assessment frameworks such as the proposed Part Z regulation from 2026. Opportunities are expected around modular construction and digital/AI-enabled productivity gains. For boards and project teams, this crystallises a twin-track agenda: de-risk compliance and capacity while accelerating investment in technologies and skills that can deliver more with less. (Source: Glenigan, sector outlook reports)
Also in the news
🏗️ Returning to recent debates on the resilience of the construction pipeline, new commentary links forecast 2026 output growth to the success of government funding for apprenticeships, affordable housing and infrastructure strategy in offsetting current weakness in housing starts. (Source: Glenigan March 2026 Construction Index)
🚆 The updated National Infrastructure Pipeline aligns investment plans with the government’s Industrial Strategy and skills agenda, aiming to give contractors and investors clearer regional visibility over upcoming work. (Source: UK Government Infrastructure Pipeline Update)
⚙️ Acuity RM Group’s £178k government cybersecurity contract is highlighted as part of growing attention to digital risk in public-sector infrastructure and construction-related programmes. (Source: Government contract notice)
🌱 GeoPura’s previously announced £80m green hydrogen supply deal for the Lower Thames Crossing, with deliveries from 2027/28, remains a flagship example of low‑carbon construction logistics planning on a major UK scheme. (Source: GeoPura announcement)
💰 Market analysts note that while industrial and commercial orders rebounded strongly at the end of 2025, economic and planning delays are still holding back new housing and infrastructure commitments. (Source: Industry market reports)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from boardrooms to site offices. If this briefing is useful, consider forwarding it to your project, investment or bid teams.