Glennigan’s Construction Industry Forecast for the UK and Republic of Ireland, published in June this year, suggests that the long-predicted growth in residential new build is, after what has appeared an extended wait, starting to materialise.
Despite continuing uncertainty globally, an improving economic backdrop at home, buoyed by falling inflation and a forecast return to economic growth, albeit it modest, this year, combined with planning reforms, is driving what is expected to be increased momentum in the residential new build market.
According to Glennigan after a contraction of 8% last year, the private new build sector will see a strong rebound of 8% in 2025, followed by a further 10% growth in 2026, and 18% in 2025.This reflects a renewed appetite for housing development as macroeconomic pressures ease.
This includes a stabilisation of the mortgage market as falling inflation and interest rates are expected to make borrowing more affordable, stimulating homebuyer demand and giving developers greater confidence.
Increasing social housing provision also forms a key part of the Government’ housing strategy to deliver 1.5 million new homes.
The sector is predicted to see growth – 3% this year, 8% in 2026 and 11% in 2027 as government spending on affordable and social housing translates into more social start in the second half of this year. This compares to a contraction of 11% last year.
“The new build sector and the wider construction supply chain seems to be turning a corner”, says Jody Vincent, Director, the Commercial Window Group.
“New starts to May are up massively on where they were last year and that trend seems to be continuing onto June.
“What is encouraging for us is the focus that is being placed on regional and smaller housebuilders and accelerated delivery of smaller sites, in addition to national schemes.”
This is a point picked up on by Glennigan in its June analysis. The authors note that a renewed government focus on unlocking smaller development sites, which while less viable for large national developers are well-suited to SME builders.
It also highlights that these smaller sites are often quicker to develop and more likely to be located in regional or suburban areas, aligning with broader goals around housing delivery and economic rebalancing.
“This is one of the benefits of the Commercial Window Group model”, continues Jody. “Regional housebuilders can partner with a highly stable manufacturer and supply partner, and through our regional delivery model, still tap into local expertise and a delivery partner on their doorstep.”
The Commercial Window Group was set up to remove complexity from the window and door supply chain.
It manufactures windows and doors in the UK’s most advanced energy efficient window and door systems, bringing them together with proven hardware and ultra secure locking, simplifying window and door specification – and through-life maintenance.
Its accredited network of regional commercial installation specialists combines national coverage and local expertise in delivery. Fully accredited and committed to the highest levels of service and site safety we guarantee professional delivery and aftercare.
Jody continues: “We’re vertically integrated. Housebuilders and social housing providers deal direct with us as a manufacturer with more than 40-years’ experience in commercial window and door supply. We also underwrite guarantees and offer 12-months fixed pricing to make budget management simpler.
“The real advantage of our model, however, is that installation is delivered by our expert new build regional partners, which means that you also get the support of a delivery partner who knows your site and the specific requirements of it.”
The sector isn’t, however, out of the woods. Glennigan points out that the construction skills shortage may despite the Government’s efforts to unclog the planning system. Jody also highlights vulnerabilities in the supply chain.
“We continue to see the building product supply chain pushed towards unsustainable pricing models”, he says. That is something, which undermines effective delivery by creating significant volatility in the building products supply chain and stores up problems for house builders – and ultimately end-users in the long run.
“We are committed to being competitive but not at any cost, because it doesn’t serve us or our customers.
“That’s something that the sector will need to consider carefully. If we want to deliver quality new homes, we need a stable and secure supply chain.
“Some of the prices that we are seeing do not support that.”
For more information on the Commercial Window Group’s next generation high performance window and door ranges and our regional delivery partners call 01234 567890 or email [email protected]
