As 2024 comes to a close, it’s a good time to take stock of where your architecture practice stands after a challenging year. Budgets are tighter, clients are demanding more sustainable designs, and new government policies are set to shake things up. So, how can you prepare for what’s next?
In this article, we’ve distilled the key insights from the latest RIBA Economics Panel—a webinar packed with expert perspectives on the financial outlook for 2025. From economic forecasts to actionable strategies, these highlights are designed to help your firm adapt and thrive in the year ahead.
Preparing for 2025
Milient Software proudly sponsored the RIBA Economics Panel in November, an event that provided crucial insights into the financial future of the architecture sector in Great Britain. The panel featured prominent figures from RIBA, the Bank of England, and experts from architecture firms, the Construction Products Association, and Cushman & Wakefield.
With discussions covering the government’s recent budget, sustainability, and shifts in construction demand, the panel delivered a clear message:
Opportunities are emerging in 2025 for architects who are ready to adapt.
Here’s what your firm needs to know to prepare for the year ahead.
Economic growth remains modest but steady
The UK economy is forecasted to grow by around 1.5% in 2025—a modest improvement from the 1% growth in 2024. Recent interest rate cuts from the Bank of England have brought relief, but concerns over inflation remain, keeping architects cautious.
While growth may be slow, it presents opportunities for firms to focus on long-term strategies. Residential and commercial projects are showing signs of recovery, and the public sector is finally seeing much-needed investment.
Below is RIBA's chart illustrating the trends in the architects' market over recent years:
Renewed optimism in residential projects
Private housing, a critical sector for smaller firms, struggled in recent years due to planning challenges and client hesitancy. However, the outlook is improving. With the new government pledging a substantial increase in housebuilding, practices are seeing a rise in enquiries, particularly for one-off housing projects.
Sustainability is also driving demand. Clients are increasingly focused on energy efficiency and sustainable materials, making architects with expertise in these areas particularly valuable.
Commercial sector shifts towards wellbeing and sustainability
Commercial projects are on the rise, especially in areas like office retrofits, data centres, and student accommodation. Employers are reimagining workplaces to prioritise employee wellbeing and sustainability, creating opportunities for architects who understand these evolving needs.
Landlords, too, are under pressure to improve energy performance ratings to meet regulatory requirements. This focus on carbon reduction is spurring significant retrofit activity, offering architects a chance to lead the charge in sustainable design.
Public sector gains momentum
The public sector, long plagued by underinvestment, is finally seeing progress. Increased government funding for schools, hospitals, and infrastructure is creating new opportunities for remedial and retrofit work, particularly as sustainability remains a key focus. Architects with experience in these areas are well-positioned to capitalise on the growing demand.
How practices can prepare for 2025
As the industry heads into a new year, here are some practical ways architects can adapt to the changing landscape:
- Embrace sustainability: Clients are prioritising sustainable design, even on tight budgets. Architects who can deliver energy-efficient solutions will have a competitive edge.
- Focus on clear communication: Early discussions about budgets and expectations are essential to avoid costly misunderstandings and project delays.
- Monitor government initiatives: Keep an eye on funding opportunities, particularly in social housing, infrastructure, and energy retrofits.
- Plan for steady growth: While the industry may not see a dramatic upturn, the signs point to gradual improvements in workload and client confidence.
For more in-depth insights, read the full article from RIBA.
