Is Now a Good Time to Buy a Construction Company in the UK?
The UK construction industry has always been a cornerstone of economic activity, underpinning infrastructure development, housing, and commercial real estate. However, with economic uncertainty, regulatory changes, and evolving government policies, prospective investors and entrepreneurs may wonder whether now is the right time to buy a construction company.
Current market conditions suggest that this could be an opportune moment to enter or plan for growth within the sector.
Capital Spending Growth
One of the most compelling reasons to invest in a UK construction company now is strong government support for major infrastructure projects.
Additionally, the UK’s Infrastructure Investment Bill aims to inject more funding into the industry, further bolstering opportunities for construction firms. This level of governmental backing not only ensures stability within the sector but also signals that construction will remain a priority for the foreseeable future.
Major infrastructure projects moving in the UK include HS2, Crossrail, the Heathrow Airport Expansion and the Thames Tidal Scheme.
In addition to big new (and old) projects, there is also a lot to be fixed. This includes the estimated £22 billion cost – as per the the National Audit Office – of the update to buildings with dangerous cladding, and the £118 billion cost to bring buildings up to scratch with the government’s benchmark standard energy performance certificates (EPCs) – as per the Construction Index.
These policies are lifting the markets outlook, with compound annual growth rate (CAGR) of 4.3% from 2025 to 2034.
Housing Stock Increases
The UK has a deep-rooted cultural and economic reliance on property ownership.
The government has committed to building 1.8 million homes by the end of this parliamentary term, demonstrating its intent to drive housing sector growth. In the Spring Budget, Chancellor Rachel Reeves underscored housing as a key area for investment and economic stimulation. This renewed focus is expected to generate significant demand
Given this cultural emphasis on homeownership, demand for residential properties is expected to persist, providing long-term opportunities for construction businesses. As housing shortages continue to drive up property values and rental prices, construction companies that specialise in residential developments are poised to benefit from sustained demand.
Regional Changes & Growth Drivers
According to the Construction Industry Training Board’s estimates, for the period of 2025 to 2028, regional forecasts paint a clear picture of sustained expansion.
In Scotland, output is expected to grow by over 2% annually, with demand driven by projects like the £200 million Scottish Gas Networks mains replacement. Northern Ireland is set to outpace this with a forecasted 2.8% growth rate, supported by large-scale developments such as the £380 million Strule Shared Education Campus in Omagh.
Wales, while showing a steadier growth rate, is preparing for a surge in activity as it delivers on the £590 million upgrade to the A465 Heads of the Valleys road. Meanwhile, in England, momentum is building across the board. The East Midlands and West Midlands are both experiencing strong growth, underpinned by transport and regeneration projects like the Midland Main Line improvements and Birmingham’s £1.9 billion Smithfield development.
The East of England and Greater London lead the charge, each forecast to grow at nearly 3% per year. Major developments like the £20 billion Sizewell C nuclear plant and the £8 billion Thamesmead regeneration are fuelling both investment and job creation. Similarly, the North West and Yorkshire & the Humber are powering ahead with transformative urban plans, including the £1 billion Bolton Town Centre masterplan and the new prison at Full Sutton.
The South East and South West are also experiencing a construction upswing. The £8.2 billion Lower Thames Crossing and the £25 billion Hinkley Point C nuclear new build stand out as key infrastructure landmarks.
Even in regions with more moderate growth rates, such as the North East, there’s a clear demand, driven by projects like the £475 million Crown Works film and TV studio in Sunderland.
Key Trends in the Construction Industry
Key trends are currently shaping the UK construction industry.
Sustainability is gaining momentum, with increased focus on low-carbon building, deconstruction and reuse, and the development of smart cities.
Technology continues to drive innovation, with greater use of construction management software, drones, and construction robots improving efficiency and safety. Prefabricated construction is growing in popularity, helping reduce delays and rework, while advancements in safety equipment are enhancing on-site protection.
Labour Shortages
The construction sector faces a well-documented skills and labour shortage, with an increasing gap between demand for skilled workers and available talent. In response, the government has committed to training up to 60,000 new construction workers by 2029.
Investors should assess how well a prospective construction company manages its workforce, including strategies for attracting and retaining skilled tradespeople. According to the Construction Industry Training Board, an additional 251,500 construction workers will be needed by 2028 to keep up with projected demand.
Compliance & Regulatory Considerations
Construction businesses in the UK must adhere to a wide range of legal and compliance requirements. One of the primary regulations involves the Construction Skills Certification Scheme (CSCS), which mandates that all workers on a construction site hold a valid CSCS card. This certification ensures that employees meet the basic necessary safety and competency standards.
Additionally, workers operating heavy machinery must obtain separate licences specific to the equipment they use. Investors must ensure that any business they acquire is fully compliant with industry regulations, as failing to meet legal standards can result in substantial fines and reputational damage.
Workplace Health & Safety
Under the Health and Safety at Work Act 1974, construction firms are legally obligated to safeguard their workforce and anyone affected by their operations. To achieve this, they must establish comprehensive health and safety protocols designed to prevent workplace accidents and injuries.
Construction environments should be maintained in a way that reduces hazards, ensuring a secure setting for all personnel. Employers must also supply personal protective equipment (PPE) wherever necessary to mitigate potential risks. Failure to adhere to these legal requirements can lead to financial penalties, legal action, and reputational damage.
Building Regulations
All construction projects must adhere to regulatory standards that govern essential aspects such as structural stability, fire prevention, and energy conservation. Non-compliance with these regulations can result in legal consequences, fines, and mandatory corrections to rectify any substandard work.
Building Safety Act 2022
This legislation enforces strict safety protocols, particularly concerning high-rise developments. It introduced the Building Safety Regulator, which oversees high-risk structures and ensures compliance with enhanced safety measures. The act requires continuous monitoring from the initial design stage through to occupancy.
Environmental Responsibilities
Construction companies must operate in line with environmental legislation aimed at minimising ecological impact. This includes adopting sustainable practices, reducing waste, and obtaining relevant environmental accreditations.
Operational Necessity: Subcontracting
Most construction companies rely on subcontractors and partnerships to complete projects efficiently. From electricians to plumbers and structural engineers, many elements of a construction project are handled by specialists. This model allows companies to manage costs effectively and scale operations as needed. However, it also presents risks, particularly if subcontractors fail to meet deadlines or adhere to compliance regulations.
When considering the purchase of a construction company, investors should evaluate its existing partnerships and subcontractor relationships. A well-established network of reliable subcontractors can be a major asset, whereas reliance on poorly vetted third parties could pose operational and financial risks.
Why Now, Why Kings Corporate
Despite some challenges, the current landscape presents a favourable opportunity for those looking to buy a construction company in the UK. With strong government support, ongoing housing demand, and new infrastructure investments, the industry remains a vital and growing sector.
However, potential buyers must be prepared to navigate labour shortages, regulatory requirements, and economic uncertainties. Conducting thorough due diligence, assessing compliance standards, and ensuring a company has a strong workforce and subcontractor relationships are all critical steps before buying a construction company.
For those who can strategically position themselves within the industry, acquiring a construction company now could yield significant long-term rewards. By leveraging government initiatives and maintaining a strong operational foundation, investors can capitalise on the booming demand for housing and infrastructure, securing a profitable stake in the UK’s thriving construction sector.
For those looking to make an exit due to the increase in Business Asset Disposal Relief set to come in April 2026, this is a good time to sell. Owners considering retirement or a change in direction may find that market confidence and active buyer interest are creating ideal conditions to maximise their return.
Contact Kings Corporate to buy or sell a business in the UK construction industry. Our track record includes the sales of Francis Bradshaw Consulting, Ceejay Construction, and more.
