The UK construction industry is ramping up production and investment, anticipating a post-pandemic boom driven by Labour's pledge to build 1.5 million new homes. This comes despite recent contractions and global economic uncertainties, with firms like Etex and Bellway Homes showing confidence in a domestic supply chain.
Brick by brick: UK builders gear up for post-pandemic boom despite global gloom
Construction industryUKHousing marketReal estateLabourPlanning policyManufacturing sectorBusiness
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TL;DR: Key points with love ❤️The UK construction industry is ramping up production and investment, anticipating a post-pandemic boom driven by Labour's pledge to build 1.5 million new homes. This comes despite recent contractions and global economic uncertainties, with firms like Etex and Bellway Homes showing confidence in a domestic supply chain.
Trending- 1 2022: Russia’s full-scale invasion of Ukraine propelled energy price spike, leading Richard Burbidge to invest in solar panels.
- 2 2023-2024: Construction industry experienced a period of contraction, with double-digit falls in activity.
- 3 2024: 184,390 home completions in the UK.
- 4 Last year (2024): Etex's new 57,000 sq metre facility near Bristol opened.
- 5 February (current year): Brick production was up by 31.4%.
- 6 March (current year): Brick production slipped back to an 8% annual rise.
- 7 May (current year): House prices fell by 0.4%; S&P Global survey showed the pace of layoffs was the worst since 2010 (excluding the pandemic).
- 8 Three months to the end of April (current year): Residential starts rose 24% from the previous quarter.
- 9 Tuesday (current week): Bellway Homes reported 'robust' spring trading, driving up builders' shares.
- 10 Wednesday (current week): Rachel Rayner's spending review is due.
- 11 Later this year: Labour’s building boom is expected to get under way.
- 12 Next year (2026): Residential housing starts expected to increase by more than 5%; 7% expansion in brick deliveries forecasted.
- 13 By 2027: Keir Starmer's promise to spend 2.5% of national income on the military.
- 14 By 2028: Wes Streeting’s health department expected to receive a 2.8% real-terms rise in annual day-to-day expenditure, amounting to £30bn a year extra.
- 15 By 2030: Government to spend an extra £3bn to train 120,000 skilled workers; changes to planning laws expected to generate an extra £6.8bn in activity.
- Increased residential housing starts (forecasted 5% expansion this year, 7% in 2026)
- Potential economic growth for the UK
- Increased demand for skilled labour in construction
- Government investment in training 120,000 skilled workers by 2030
- Changes to planning laws expected to generate an extra £6.8bn in activity by 2030
- Potential for shortages of skilled staff despite training efforts
- Private housebuilders might be reluctant to complete large-scale projects to prevent over-supply denting house prices and profit margins
What: UK construction firms are increasing production and investment, anticipating a significant boom in housebuilding, aiming to meet Labour's target of 1.5 million new homes. This comes despite recent industry contraction and global economic uncertainties, with a focus on strengthening domestic supply chains.
When: Anticipated to get underway later this year, with residential housing starts expected to increase next year (2026) by over 5%. The industry experienced contraction in 2023 and 2024. The article was published on June 11, 2025.
Where: United Kingdom, specifically near Bristol (Port of Bristol) and North Wales.
Why: The anticipated boom is driven by Labour's pledge to build 1.5 million new homes, which ministers see as a significant driver of economic growth. Lessons learned from Covid-era supply chain disruptions (reliance on foreign suppliers) are prompting a shift towards domestic manufacturing. There's also a potential benefit from importing cheap construction materials redirected due to US tariffs.
How: Construction firms are ramping up production (e.g., Etex's new plasterboard factory, domestic brick factories), investing (e.g., Richard Burbidge's solar panels), and major housebuilders are reporting strong outlooks. The government plans to spend an extra £3bn to train 120,000 skilled workers to address potential staff shortages.