The latest PMI survey revealed a steep decline in housing and civil engineering activity in February. New work and input buying has fallen at the fastest pace for almost five years, and input cost inflation accelerates to the highest since March 2023.
At 44.6 in February, down from 48.1 in January, the headline S&P Global UK Construction Purchasing Managers’ Index (PMI®), a seasonally adjusted index tracking changes in total industry activity, registered below the neutral 50.0 threshold for the second month running. The latest reading was also the lowest for nearly five years and signalled a steep decline in total construction activity.
Residential building (index at 39.3) decreased for the fifth month and was the weakest-performing area of construction activity in February. Aside from the pandemic, the rate of decline was the fastest since early 2009. Survey respondents often cited weak demand conditions, headwinds from elevated borrowing costs and a lack of new work to replace completed projects.
Civil engineering activity (39.5) also registered a steep decline in February. The respective seasonally adjusted index was the lowest since October 2020. Commercial construction (49.0) displayed a degree of resilience, with output levels falling only marginally and at a similar pace to that seen in the previous survey period.
February data pointed to worsening demand conditions across the construction sector. New order intakes decreased sharply and to the greatest extent since May 2020. Survey respondents noted delayed decision-making among clients, reflecting squeezed budgets and concerns about the economic outlook. Some firms also noted the impact of cutbacks to business investment spending plans.
Construction companies indicated a reduction in their staffing numbers for the second consecutive month. Although only modest, the pace of job shedding was the sharpest recorded since November 2020. Lower workforce numbers were typically linked to the non-replacement of voluntary leavers in response to cost constraints and fewer new project starts. This also led to the steepest fall in sub-contractor usage since May 2020.
Tim Moore, Economics Director at S&P Global Market Intelligence, said: “Sharply declining order books rippled through the UK construction sector in February, which led to accelerated reductions in output volumes, employment and input buying. Weak demand conditions were attributed to entrenched caution among clients, against a backdrop of subdued consumer confidence and lacklustre economic performance.
“Aside from the pandemic, total industry activity decreased at the steepest pace since December 2019. This was led by considerable reductions in residential building and civil engineering work, while a degree of resilience was reported for commercial construction activity. Survey respondents widely cited a lack of new work in the house building segment, due to soft market conditions and the impact of elevated borrowing costs.
“Construction companies remain optimistic overall about their growth prospects for the next 12 months, albeit less so than on average in 2024 amid increasing concerns about the broader UK economic outlook. The were also signs that rising payroll costs and purchasing prices have become a source of anxiety, with the latest increase in overall business expenses the steepest since March 2023.”
The Competition and Markets Authority (CMA) has found that Topps Tiles’ £9 million purchase of 30 CTD Tiles stores raises competition concerns in 4 areas of the United Kingdom.
Topps Tiles is the biggest specialist tile retailer in the UK. Before entering administration in August 2024, CTD was the second largest specialist tile retailer in the UK. As part of the deal Topps Tiles acquired 30 stores, as well as supporting infrastructure such as stock and all related intellectual property for CTD Tiles, CTD Architectural, and CTD Housebuilders .
Following completion of the deal the CMA received several complaints, which included concerns relating to how the deal impacted businesses and retail customers in specific areas of the country. Following a Phase 1 investigation, the CMA found that a small number of sites in Dorking, Edinburgh, Inverness and Aberdeen created competition concerns in the supply of tiles to retail customers and business customers.
The investigation found both companies compete closely for retail and business customers. After reviewing the deal, including internal documents and evidence from customers and competitors, the CMA concluded that in most areas there are sufficient remaining competitors but that in a small number of areas, the deal could lead to worse deals and service for customers.
Joel Bamford, Executive Director for Mergers at the CMA, said: “Having looked at the evidence, we’re concerned Topps Tiles’ purchase of CTD Tiles may reduce competition in Dorking, Edinburgh, Inverness and Aberdeen.
“This loss of competition could lead to worse deals and service in those areas. Whether you’re retiling your own home or a business that provides renovation services, the merger could make such projects more expensive.
“Topps Tiles now has the opportunity to offer solutions to our concerns, otherwise this case will proceed to a more in-depth investigation.”
More information can be found on the Topps Tiles / CTD Tiles case page.
The COVID-19 pandemic reshaped the world of work in ways few could have predicted. Office attendance plummeted, traditional workplace models were upended, and demand for office real estate shrank dramatically. Adrian JG Marsh looks at a recent McKinsey report that sheds light on what’s next.
The ripple effects of COVID-19 extended far beyond office buildings, affecting commuting patterns, retail footfall in city centres, and even the long-term structure of the property supply chain. As companies reassess their workspace strategies, the future of the office is being rewritten.
The Post-Pandemic Office Landscape
The shift away from daily office attendance has been stark. Fewer people commuting means fewer passengers on trains, fewer coffee and sandwich purchases, and fewer opportunities for the development of new office spaces. The traditional office, once an essential corporate fixture, is no longer a given. Companies are now reassessing their real estate portfolios, balancing flexibility with the need to maintain culture, collaboration, and productivity.
At one end of the spectrum, some businesses are enforcing a full return. JP Morgan, for example, has pushed its 22,000 UK staff back to a five-day office week, leading to a shortage of desk space at its Canary Wharf headquarters. Meanwhile, other firms are embracing hybrid working, questioning whether large office footprints are still necessary.
McKinsey’s latest review of the real estate market examines these trends and provides a framework for understanding the office’s future role. The report suggests that the office must evolve into a purposeful, connected, digitally enhanced, and sustainable space. Only then can it remain relevant in the age of hybrid and remote working.
The Office with Purpose
The next-generation office must be a strategic tool for business success, not just a place to house employees. To remain valuable, office spaces must be:
- Located in prime areas with high-end amenities and adaptable interiors.
- Designed for a clear purpose, with companies defining when and why employees need to be in the office.
- An asset for talent attraction and retention, fostering a sense of belonging, culture, and collaboration.
- Programmed for key interactions, ensuring that hybrid teams maximise their in-office time for brainstorming, mentorship, and team building.
Companies are already shifting in this direction, opting for smaller but higher-quality office spaces while redirecting funds toward better infrastructure and employee experiences.
The Office as a Hub for Connection
One of the biggest drawbacks of remote work is the loss of social capital—those spontaneous interactions that fuel innovation, mentorship, and knowledge sharing. Future offices must prioritise connection-building by:
- Encouraging informal gatherings and knowledge-sharing sessions.
- Creating flexible spaces designed for collaboration, workshops, and learning.
- Using data-driven insights to refine layouts that optimise workplace experience.
- Integrating well-being-focused designs, ensuring offices support employees’ mental and physical health.
With many employees still reluctant to return full-time, the office must earn its place by fostering a sense of community and purpose that cannot be replicated remotely.
The Digitally Enhanced Office
Technology will play a key role in making the office more efficient, comfortable, and responsive to change. Smart office spaces will:
- Use AI-driven analytics to optimise layouts, lighting, and foot traffic flow.
- Incorporate modular designs that adapt to evolving work styles.
- Provide integrated hardware, software, and services to enhance the office experience.
- Offer data insights into space utilisation and energy efficiency, enabling smarter operational decisions.
The use of generative AI and sensor-based technology will transform workplaces, helping them compete with the convenience of working from home.
The Sustainable Office
Sustainability is now a business imperative. Future office spaces must align with net-zero goals and prioritise the well-being of occupants. This means:
- Decarbonising operations through smart energy management and sustainable construction.
- Collecting real-time data on energy use and emissions to support ESG (Environmental, Social, and Governance) goals.
- Integrating natural light, greenery, filtered air, and outdoor spaces to boost productivity and well-being.
Companies that fail to integrate sustainability into their real estate strategies will struggle to meet increasingly stringent regulations and tenant expectations.
Implications for the Property Supply Chain
These evolving office demands have major consequences for the property supply chain. Developers, landlords, and service providers must rethink their approach to delivering office spaces that align with new workplace realities.
Aditya Sanghvi, Senior Partner at McKinsey New York, sums it up: “I haven’t given up hope for the office, but I do think landlords have to create a different relationship with tenants and provide services that actually help those tenants achieve better outcomes. To beat the working-from-home alternative, spaces should ‘earn the commute’ by being places where people want to work, not just places where they have to work.”
For landlords and developers, this means investing in flexibility, technology, and sustainability to remain competitive. Office design must become more tenant-centric, focusing on value-added services rather than just square footage. Meanwhile, the construction supply chain must adapt to deliver smarter, greener, and more adaptable spaces that meet the expectations of the modern workforce.
The Road Ahead
The office is not dead, but its role is changing. The post-pandemic workplace must serve a clear purpose, foster meaningful connections, integrate smart technologies, and prioritise sustainability. Companies that embrace these shifts will find success in attracting top talent, maintaining strong workplace culture, and making the office a destination worth commuting to.
For landlords, developers, and the broader real estate sector, the challenge lies in delivering office spaces that meet these new demands. Those who adapt will thrive; those who resist change risk obsolescence.
The future of the office is not just about buildings—it’s about people. And the companies that prioritise people-first workplaces will shape the next era of work.
Birmingham-based Lyndon SGB, a leading scaffolding and access contractor, has rebranded as Brand Access Solutions by BrandSafway. The name change reflects the company’s alignment with BrandSafway’s global operations and reinforces its commitment to safety, innovation, and customer-centric growth.
Operating across England, Scotland, and Wales, Brand Access Solutions is on of the UK’s largest providers of temporary construction access, offering scaffolding, motorised access, suspended platforms, edge protection, and temporary roofing. The company’s extensive expertise supports major infrastructure and commercial projects nationwide.
“Our new name strengthens our position in the market while continuing our legacy of safety and service excellence,” said Centin Baxter, Regional Vice President, Europe. “We remain committed to helping clients complete projects safely, on time, and within budget.”
Brand Access Solutions has played a crucial role in landmark projects, including The Historic New Register House in Edinburgh, Manchester’s Co-op Live Arena, and Manchester Town Hall. With over 1,100 specialists across 15 UK locations, the company is well-equipped to handle projects of any scale.
While the trading name has changed, day-to-day operations, service offerings, and safety commitments remain unchanged. The company, part of BrandSafway’s global network, continues its mission to deliver world-class access solutions.
For more details, visit www.brand-accesssolutions.com.
The construction industry is bracing for cost increases of up to 7% in 2025, as economic and geopolitical uncertainty continues to disrupt supply chains and inflate material and labour costs. These findings come from Building a Resilient Future: Adapting to Uncertainty in 2025, a new report from Currie & Brown, the cost and project management consultant.
Despite ongoing challenges, booming sectors such as digital infrastructure and renewable energy present opportunities for growth. However, navigating these opportunities will require resilience and adaptability. The report identifies three key factors driving cost inflation:
Economic Uncertainty Persists
While inflation has leveled off and interest rates have stabilised, political volatility, trade protectionism, and conflicts worldwide continue to make the economic outlook unpredictable. These pressures will affect the cost and availability of materials and labour, adding to overall construction costs.
The Digital Revolution Drives Competition
The rapid evolution of AI and digital technology is reshaping industries globally. While this transformation fuels demand, it also intensifies competition for specialised materials needed for tech-sector projects, further escalating costs.
Labour Shortages Intensify
The construction industry is facing a chronic shortage of skilled workers, a challenge set to deepen in 2025. Sectors experiencing rapid growth—such as renewable energy, digital infrastructure, and housing—are expected to see labour costs rise as companies compete for talent.
Alan Manuel, Group CEO of Currie & Brown, warns that cost inflation has become an unavoidable reality for the industry. “Year-on-year price increases are expected, but the real challenge is uncertainty. Macro-economic and geopolitical instability will continue to create volatility. Resilience will be the key to success in 2025 and beyond.”
Strategies for Navigating Cost Increases
The report outlines three crucial strategies for construction firms to mitigate risks and capitalise on opportunities:
- Adaptability: Diversifying supplier networks and fostering collaboration can help companies spread risk and shield themselves from unforeseen economic turbulence.
- Addressing Skills Shortages: Investing in training, planning for workforce availability, and recruiting from adjacent industries (such as technology and healthcare) can help alleviate the skilled labour gap.
- Leveraging Data: More precise data analysis will allow companies to stress-test projects, improve cost forecasting, and adjust quickly in response to unexpected challenges.
“There is clear potential for growth in 2025,” concludes Manuel. “However, success will require pragmatism, collaboration, and careful planning to absorb potential future shocks.”
Shrinking order books and rising cost pressures during January 2025 contributed to the weakest business activity expectations since October 2023, according to the latest S&P Global UK Construction Purchasing Managers’Index.
During January all three categories of construction work see a reduction in output during January and cost inflation accelerates to a 21-month high. The modest fall in total industry output was recorded at the start of the year, thereby ending a 10-month period of sustained expansion.
At 48.1 in January, down sharply from 53.3 in December, the headline seasonally adjusted S&P Global UK Construction Purchasing Managers’Index™ (PMI®) – an index tracking changes in total industry activity – registered below the 50.0 no-change threshold for the first time sinceFebruary 2024.
Construction companies cited delayed decision-making by clients on major projects and general economic uncertainty had weighed on business activity at the start of 2025. A number of firms also commented on the impact of subdued market conditions in the residential building sector. Latestdata showed that house building (index at 44.9) decreased for the fourth successive month and at the fastest pace since January 2024.
Tim Moore, Economics Director at S&P Global Market Intelligence, said: “Output levels decreased across the board in January, with particularly sharp reductions seen in the residential and civil engineering categories.
“Construction firms noted the fastest fall in residential work for 12 months as market conditions remained somewhat subdued. Anecdotal evidence suggested that caution regarding demand for new projects was prevalent at the start of 2025, despite strong policy support for house building andhopes for a longer-term boost to supply via planning reform.
“The forward-looking survey indicators were also relatively downbeat in January. New orders decreased at the fastest pace since November 2023 amid many reports of delayed decision-making by clients. Reduced workloads, combined with concerns about the general UK economic outlook, led to a dip in business activity expectations to the lowest for 15 months.”
Sub-contractor charges increased at an accelerated pace in January, with the rate of inflation hitting a 21-month high. This was despite areduction in sub-contractor usage for the fifth time in the past six months.
Finally, around 38% of the survey panel predict a rise in business activity over the year ahead, while only 17% forecast a reduction.
The Federation of Piling Specialists (FPS) is urging the UK government to address severe delays caused by the Building Safety Regulator (BSR) approval process, which is significantly impacting the construction sector. These delays, far exceeding the expected 12-week timeline, are stalling high-rise, commercial, and residential developments—particularly in London and other urban areas.
Since the introduction of the new regulatory framework in April 2024, only a limited number of projects have received approval, leaving FPS members struggling with design finalisation hold-ups and a lack of incoming work. The delays are causing a domino effect across the geotechnical, demolition, and wider construction supply chains, creating uncertainty in an already fragile market.
And according to freedom of information research by consultancy Project Four, more than 90 major new-build projects are stuck in a bottleneck awaiting Gateway 2 design approval to start work. Just 11 new-build jobs are reported to have cleared Gateway 2 checks, although only two of these are understood to have passed through the present checking regime. The delays are also holding up retrofit works on over 600 existing High Risk Buildings (HRB) classified as over seven storeys or 18metres.
While the FPS fully supports the Building Safety Act and the role of the BSR in improving safety and accountability, the prolonged approval times are proving unsustainable. Many FPS members are now considering job cuts and reduced investment—moves that could worsen existing skills shortages when projects eventually move forward.
FPS Chair Malcolm O’Sullivan warned: “Approval times of six months or more are simply not viable. These delays are undermining investment, recruitment, and the government’s target of 1.5 million new homes over the next five years.”
The FPS is calling for clearer guidance, increased resources for faster approvals, and closer collaboration between the BSR and industry stakeholders. Without urgent reform, the sector faces significant instability, threatening the UK’s ability to meet its housing and infrastructure goals.
Hygiene Pro Clean (HPC) understands the serious risks that mould infestations pose to residential and commercial properties—from structural damage to significant health hazards. That’s why HPC provides rapid-response mould remediation solutions, tailored to effectively eliminate mould and prevent its return.
HPC’s process begins with a thorough inspection of a property. HPC then accurately quantify the extent of mould growth, identify the root causes, and propose a strategic action plan to address the issue and eradicate mould.
Using HPC’s cutting-edge ultrasonic atomisation technology, HPC ensures deep cleaning and complete eradication of mould spores from both visible surfaces and hard-to-reach areas. This state-of-the-art method guarantees a more thorough and efficient removal process, restoring your property to a safe and healthy state.
Prevention is key to maintaining a mould-free environment. HPC implements solutions to tackle moisture issues, enhance ventilation, and create conditions that inhibit mould from returning. Our proactive approach ensures long-term protection for your property.
Upon completion, HPC provide a certification that validates the remediation work and confirms that your property meets stringent air quality standards. This certification offers you peace of mind and assurance of a healthy indoor environment.
Whether you’re a homeowner, property manager, or business owner, Hygiene Pro Clean is your trusted partner in creating and maintaining a mould-free space.
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The UK government has set ambitious sustainability goals: within the next five years, all new buildings should be designed to be net zero-carbon, and within the next decade, 100% of new developments must achieve net zero-carbon status. Adrian JG Marsh looks at the challenges the specialist fit-out contracting sector faces.
For the fit-out sector, net-zero-carbon targets present both a challenge and an opportunity. The industry must embrace radical change in materials, procurement, and construction processes while ensuring quality, cost-effectiveness, and compliance with regulations. One of the most effective ways to accelerate this transition is through well-structured framework agreements that prioritise sustainable outcomes.
The Urgency of Net-Zero-Carbon Fit-Outs
Buildings are responsible for nearly 40% of the UK’s carbon emissions, with a significant portion coming from embodied carbon—the emissions associated with materials, manufacturing, and construction. Fit-out projects, particularly those in commercial and retail sectors, contribute heavily to this footprint. Many interior refurbishments occur every five to ten years, leading to frequent material wastage and high energy consumption.
To align with net-zero-carbon goals, the sector must prioritise circular economy principles, including designing for longevity, reusing materials, and minimising waste. It also requires a shift towards sustainable procurement, where low-carbon and recycled materials become the norm rather than the exception.
Procurement as a Catalyst for Net-Zero Fit-Outs
A key driver of sustainable fit-out projects lies in procuring developments through effective framework agreements. These agreements, used by public and private sector clients, establish long-term partnerships between clients, contractors, and suppliers, streamlining the delivery of projects while embedding sustainability at their core.
Framework agreements can:
- Set Clear Net-Zero Requirements: Embedding stringent sustainability criteria at the procurement stage ensures that all appointed contractors and suppliers are committed to net-zero-carbon principles.
- Encourage Innovation and Collaboration: Long-term partnerships enable the supply chain to invest in research, develop new materials, and explore more efficient construction methods.
- Reduce Waste and Improve Circularity: By focusing on sustainable sourcing, frameworks can mandate the use of reclaimed materials and modular components that reduce embodied carbon.
- Drive Cost-Efficiency in Sustainable Solutions: Early engagement through framework agreements can make sustainable choices more affordable by scaling demand for low-carbon materials and processes.
Several existing frameworks, such as Crown Commercial Service’s Construction Works and Associated Services, are already incorporating sustainability requirements, but more targeted efforts in the fit-out sector are needed to accelerate zero-carbon progress.
Key Strategies for Achieving Net-Zero Fit-Outs
- Low-Carbon and Recycled Materials
The selection of materials plays a critical role in determining the carbon footprint of fit-out projects. To meet government targets, fit-out firms must prioritise:
- Reclaimed and recycled materials, such as timber, metal, and glass, reducing demand for virgin resources.
- Bio-based materials, like hempcrete, bamboo, and mycelium insulation, which store carbon and minimise environmental impact.
- Circular economy principles, including re-using furniture and fittings rather than purchasing, ensuring amortising use across multiple fit-outs.
- Energy-Efficient Fit-Outs and Smart Technology
Net-zero-carbon buildings must not only be constructed sustainably but must also operate with minimal energy consumption. The fit-out sector can contribute by integrating:
- Smart lighting and HVAC systems that adapt to occupancy and external conditions, reducing unnecessary energy use.
- Passive design strategies, such as maximising natural light and ventilation, to lower operational energy demand.
- On-site renewable energy solutions, like solar panels and energy storage, to support net-zero operations.
- Reducing Waste Through Modular and Offsite Construction
Traditional fit-out projects generate high levels of construction waste, much of which ends up in landfills. Shifting towards modular and offsite construction can significantly reduce waste and carbon emissions.
- Prefabricated interior elements (such as walls, ceilings, and furniture) can be manufactured offsite, ensuring precision and minimising material waste.
- Modular components can be disassembled and repurposed in future fit-outs rather than discarded.
- Standardised design principles can enable more reuse and adaptation over time.
Overcoming Barriers to a Net-Zero Fit-Out Sector
While progress is being made, several challenges remain:
- Cost Perception: Many clients still believe net-zero fit-outs come with a high price tag. However, long-term savings in energy efficiency and material reuse often offset initial costs.
- Supply Chain Readiness: Many suppliers are yet to scale up low-carbon material production. Stronger demand through framework agreements can drive supply chain transformation.
- Regulatory Gaps: While building regulations are evolving, clearer guidelines on embodied carbon reductions in fit-outs are needed to drive widespread adoption.
Industry leaders must work closely with policymakers to establish incentives, funding mechanisms, and stricter carbon reduction mandates to accelerate change.
A Defining Moment for the Fit-Out Sector
The UK government’s zero-carbon targets present a critical opportunity for the fit-out sector to lead the way in sustainable construction. Through proactive procurement, circular economy principles, and smart technologies, the industry can transform how interior spaces are designed, built, and maintained.
Framework agreements provide a structured pathway to achieving these goals, ensuring long-term commitment and collaboration across the supply chain. By embedding zero-carbon principles at the procurement stage, the fit-out sector can move decisively towards a more sustainable, cost-effective, and resilient built environment.
Now is the time for industry stakeholders to embrace innovation and bold action, securing not just compliance with upcoming regulations but also a competitive advantage in the evolving real estate landscape.
Mounting evidence shows that smaller construction firms are struggling to stay afloat, with nearly 7,000 businesses now in critical distress and a 58% rise in extreme financial pressure across the sector. Young sole traders appear most vulnerable, with research from Fix Radio revealing that 36% of Millennial and Gen Z tradespeople say their business is on the brink of collapse. A further 27% want to expand but lack the know-how to proceed.
Rising stress levels are compounding the crisis, with 35% of young sole traders reporting the highest levels of anxiety they have ever experienced. Many cite late or missing payments as a major contributor to financial uncertainty, making it harder to maintain cash flow and keep their businesses afloat.
Industry experts warn that without better financial safeguards and support, the sector could see a worrying loss of fresh talent. Clive Holland, broadcaster on Fix Radio, is calling for more guidance and resources to help young entrepreneurs build sustainable businesses.
Key solutions include improved methods to tackle late payments, strategies to manage overheads, and better financial planning tools. Additionally, education around pricing, contracts, and client communication could empower younger tradespeople—34% say this would be the biggest aid to their business.
With thousands of firms at risk, urgent action is needed to support the next generation of tradespeople and prevent a wider collapse in the construction sector.
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