Market Intelligence Reports

Our Q4 2025 Market Intelligence indicates a stabilising construction landscape across the South of England, with cautious optimism emerging for 2026 despite persistent labour constraints and ongoing insolvency risks. Over the last year we have observed marginal shifts quarter‑on‑quarter, reflecting a gradual return to pre‑pandemic norms and subdued cost volatility. Although Tender workload has risen by +0.25%,this is slight, and could be driven by selective bidding and continued uncertainty around project starts, with London facing heightened viability pressures and the South West experiencing concentrated demand. Construction costs remain comparatively stable at +1.36%, although labour continues to be the dominant driver of inflation, with specialist trades in particularly high demand and the industry requiring substantial workforce growth heading into 2026. Material availability remains steady, with only minor increases to lead times. Looking ahead, our forecasts point to strengthening market conditions through 2026, with building costs expected to rise by +3.45%, tender workload by +2.70%, and employment by +1.76%, underpinned by anticipated increases in government‑backed infrastructure activity. However labour shortages and regulatory pressures underscore the importance of early engagement, proactive supply chain planning, and balanced risk allocation to secure delivery certainty as the market tightens into 2027.

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