Infrastructure leads UK construction growth despite sector-wide sowdown

Infrastructure projects continued to outperform other sectors in the UK construction industry in Q2 2025, with the Royal Institution of Chartered Surveyors (RICS) reporting optimism for the year ahead.

The latest RICS survey shows infrastructure recording a net balance of +11% for new workloads, ahead of other segments. Energy projects led the way with +34%, followed by water and sewage schemes at +27%. Repair and maintenance also remained resilient at +5%, though new work slipped slightly to -5%.

Overall, the net balance for total construction workloads in Q2 2025 edged down to -3%, from -1% in Q1.

Despite the dip, forward sentiment is upbeat: 17% more respondents expect workloads to rise over the next 12 months. Private residential and non-residential activity are both forecast to grow, with net balances of +15% and +9%, respectively.

However, the report warns that growth could be tempered by persistent challenges. Planning and regulatory delays were cited by 61% of respondents as the main barrier to activity, while 39% reported ongoing labour shortages. Some participants also flagged uncertainty over the Building Safety Act, calling for clearer processes and greater resources for the Building Safety Regulator (BSR).

“The Building Safety Regulator must work with industry to provide clearer guidance and consistent decision-making,” said Gary Strong, Head of Professional Practice at RICS. “Members have reported regional inconsistencies in how the rules are interpreted, undermining confidence in the regulatory system and causing delays.”

www.rics.org