The construction industry in the United Kingdom is poised for significant transformation in 2025, as new government initiatives, regulatory changes, technological advancements, and global challenges present both obstacles and opportunities for growth. Ian McKinnon, Managing Director at Veriforce CHAS, has identified seven critical issues that will shape the sector in the coming years and how businesses can adapt to these changes.
One of the foremost issues is the UK government’s ambitious “Get Britain Building Again” programme, which aims to construct 1.5 million homes over the next five years. This initiative is underpinned by a revised National Planning Policy Framework (NPPF) focused on brownfield redevelopment and the selective release of greenbelt land, dubbed "grey belt." While some industry experts express scepticism about the feasibility of these targets within the stipulated timeframe, McKinnon asserts that these plans could significantly boost employment opportunities for contractors. Nonetheless, the rise in workplace fatalities has underscored the urgent need for enhanced training and rigorous safety compliance. He advises, "Contractors should adopt best practices like the Common Assessment Standard (CHAS Elite) to enhance safety, credibility, and tender prospects."
Another pivotal concern is the ongoing overhaul of building safety regulations, as stipulated by the Building Safety Act 2022. Starting March 2025, all new care homes, irrespective of their height, will be mandated to install sprinkler systems. The impending expiration of old-style CSCS cards by December 31, 2024, further emphasises the sector’s drive to enhance workforce skills and safety standards. McKinnon recommends signing up for the Building Safety Regulator e-bulletin to stay updated with regulatory changes and advises referring to the BESA's ‘Play it Safe’ guide to ensure workers fully comprehend their responsibilities under the law.
The launch of the Central Digital Platform (CDP) in February 2025, coinciding with the Procurement Act 2023, represents a substantial modernisation for public procurement. This platform aims to centralise government procurement activities, increasing transparency and efficiency, particularly benefiting small and medium-sized enterprises (SMEs). Features like a unique supplier identifier and a "Tell Us Once" system for supplier data are expected to simplify the procurement process. However, McKinnon emphasises that suppliers must still adhere to prequalification checks and due diligence.
The construction sector is grappling with persistent workforce challenges, underlined by a 10% decline in employment levels compared to pre-pandemic figures. Factors such as Brexit have reduced the influx of European workers, prompting the government to lessen reliance on overseas labour through initiatives like Skills England and revisions to the apprenticeship levy. In addition, new regulations under the Employment Rights Bill will facilitate flexible working rights and further protect union employees.
Occupational health and safety have become a central concern within the sector, as recent Health and Safety Executive (HSE) statistics indicate a 20% increase in fatal construction injuries over the past five years. McKinnon outlines the critical importance of establishing a culture of safety across the industry. He suggests that contractors perform regular safety audits and training programmes to minimise risks, promoting adherence to established safety standards like the CHAS Elite.
Mental health issues have also emerged as a pressing concern, with construction workers experiencing the second-highest suicide rate in the UK. A survey by Causeway Technologies in 2024 revealed that over half of those surveyed reported facing mental health challenges, and 12% disclosed having suicidal thoughts. McKinnon advocates for businesses to prioritise mental health as a strategic objective, stating that initiatives like the Veriforce CHAS Mental Health & Wellbeing Evaluation can foster a supportive work environment.
Lastly, sustainability has transitioned from being a mere consideration to an essential component in construction practices. The Procurement Act 2023, effective February 2025, will require companies to demonstrate environmental responsibility to secure contracts. Adopting low-carbon materials, implementing energy-efficient designs, and improving waste management systems are crucial for meeting net-zero targets. McKinnon recommends conducting sustainability audits and pursuing certifications such as BREEAM and LEED to enhance organisational performance and reputation.
In conclusion, the construction industry faces a multitude of pivotal challenges and opportunities in 2025. By staying informed and taking proactive measures, companies can navigate this evolving landscape while contributing to a safer, more sustainable, and resilient future.
Source: Noah Wire Services