Mace Consult has published its latest quarterly UK Market View, highlighting the opportunities devolution could create across housing, transport and public services, while warning that greater local powers alone will not translate into projects on the ground.
The latest data underlines the challenging backdrop. Construction output declined by 1.0% in the three months to August and is 1.6% below a year ago, while new orders fell 11.8% in Q2, marking a third consecutive quarterly decline.
At the same time, construction material price inflation reached 6.4% in August, its highest level since March 2023.
In this context, the report explores how greater local control over housing, transport, regeneration and public services could help strengthen regional construction pipelines. However, Mace Consult warns that success will depend on funding certainty, local delivery capability and effective coordination between central and local government.
Ceri Evans, Global Director of Cost and Commercial Management, Mace Consult, said: “The UK construction market is entering a period in which opportunity and delivery risk are moving in parallel. Devolution, planning reform and changes to the methodology behind public sector appraisals could unlock a stronger pipeline across housing, transport and public services, giving local leaders greater influence over investment. But policy ambition alone will not put projects on site.
“Clients and local authorities will need clear funding, realistic programmes, robust supply-chain due diligence and early commercial engagement. Those that combine local ambition with disciplined decision-making will be best placed to improve certainty, manage inflation and convert the emerging policy opportunity into successful outcomes.”
The report also examines planning and infrastructure reforms that could help more projects progress, including stronger support for suitable housing developments near well-connected transport links and the reduction of the government’s discount rate from 3.5% to 3.0%.
With weaker demand being balanced by renewed cost pressures, Mace Consult has left its 2026 tender price inflation forecasts unchanged at 3.5% for national real estate, 4.5% for national infrastructure and 3.5% for London.
Ultimately, the report concludes that converting policy ambition into successful projects will require early commercial engagement, realistic delivery plans and robust decision-making.
