Share of the output of different construction segments in the UK 1997-2023

Housing and non-housing repair and maintenance were the segments with the largest construction output in the United Kingdom in 2023. Those two sectors together amounted to over 41 percent of the industry. Meanwhile, the output of new private housing construction amounted to 19 percent. The output volume of infrastructure grew during the past years, surpassing the construction of commercial buildings. A look at the construction output index for new private housing shows that output has been increasing following the years of the 2008 recession, and had a strong recovery after the COVID-19 pandemic. 

Construction GVA increasing

An increased output also translated into a growing contribution to the gross domestic product (GDP). In the third quarter of 2023, the construction industry had a gross value added of nearly 37 billion British pounds. That value reached a low point during the start of the COVID-19 pandemic. In comparison, the overall GDP of the United Kingdom was valued at over 2.27 trillion British pounds.

Private housing construction expected to decline

The output of the private housing sector was forecast to decline by over six percent in 2024. However, that segment's output was expected to grow by 10.8 percent in the following year. The average price of houses in the UK has remained relatively stable in 2023, after a period of high growth.