UK Construction Awards Hold Steady at £7.18bn Despite Global Uncertainty

The UK construction sector continues to demonstrate resilience, with contract awards reaching £7.18 billion in March 2026, maintaining steady activity levels across key sectors.

According to data from Barbour ABI, the total represents a slight dip from February but remains consistent with performance seen throughout the first quarter of the year — and notably above levels recorded at the end of 2025.

📊 Strong Sector Spread Driving Stability

Residential construction led the way, accounting for £2.57 billion in awards. Major schemes contributing to this total include large-scale student accommodation and urban residential developments, reflecting continued demand for housing and mixed-use regeneration.

Infrastructure activity also remained strong at £1.52 billion, supported by ongoing investment across energy, transport and public sector projects.

The spread of activity across multiple sectors highlights a balanced pipeline, reducing reliance on any single market segment and reinforcing overall industry stability.

📍 Planning Activity Remains Robust

Planning applications reached £6.39 billion in February, holding steady in line with late-2025 trends. Residential schemes continued to dominate, particularly across the South East, East of England and North West.

Meanwhile, planning approvals climbed to £11.7 billion in March, maintaining elevated levels seen since the start of the year. Infrastructure approvals showed a noticeable shift towards nationally significant energy projects, aligning with the UK’s long-term investment strategy.

🏗️ Industry Outlook

Despite ongoing geopolitical uncertainty, the data suggests that project pipelines remain active, with developers and contractors continuing to progress schemes across multiple sectors.

The first quarter of 2026 points to a construction industry that is not only active but adapting — with consistent output, strong planning volumes, and continued confidence in key areas of the market.