Economic forecasts, global shocks, and sector shifts — here’s what architects need to know heading into 2025.
It’s been a year of shifting expectations. As 2024 ended, UK architecture practices were cautiously optimistic: interest rates were stabilising, political signals pointed to increased investment, and the government was backing housing and infrastructure.
Then came April.
Global markets were shaken by sweeping US tariff announcements. The IMF cut its global growth forecasts. Suddenly, the economic landscape changed. For architects, questions about budgets, timelines, and where the next project might come from are once again top of mind.
In this article, we’ll summarise the key insights from the RIBA Journal Spring Economics Panel Webinar, including:
- What sectors are still forecast to grow
- Where UK practices are finding new work
- What challenges are top of mind in the industry
- And how successful firms are responding in practice
What the data says: Growth, risk, and where work is happening
Despite global instability, the UK construction sector is still expected to grow — and some markets are showing surprising strength.
UK construction growth remains steady
The sector is forecast to grow by 1.9% in 2025, with residential completions projected to rise 10% in 2026. Government-funded programmes, including school rebuilds and infrastructure investments, are expected to offer stable opportunities for practices able to access them.
International demand is growing
UK architectural expertise continues to be in demand abroad — particularly in Saudi Arabia, the UAE, and Poland. Firms that are agile, outward-looking, and able to build the right partnerships are well placed to benefit.
On the ground: Delays, tight budgets, and stretched teams
While some indicators are positive, many UK firms are still feeling pressure. The biggest challenges noted during the panel were:
- Difficulties hiring and retaining qualified staff
- Clients delaying design engagement due to budget constraints
- Project delays caused by material and labour shortages
- 6–9 month slowdowns on residential projects linked to Building Safety Regulation processes
In response, many practices are diversifying their portfolios, exploring adjacent markets, and moving to adopt digital tools earlier in the project cycle.
What successful practices are doing differently
During the Q&A session, experienced practice leaders shared the steps they’re taking to stay resilient. Their advice?
- Be open to new sectors and regions. Many projects now come from unexpected directions — from public infrastructure to overseas housing.
- Invest in your team. Quieter periods can be an opportunity to upskill, mentor junior staff, and strengthen your internal processes.
- Prioritise client relationships. When work is unpredictable, strong relationships can keep projects flowing.
- Follow the work. Keep a close eye on regional trends and be ready to shift focus to where demand is rising — whether public or private, UK-based or international.
- Start with tech. Digital tools aren’t just nice to have. Integrating them from the outset helps manage complexity, reduce errors, and improve efficiency.
Sectors worth watching in 2025
Despite challenges in private housing, several sectors are likely to offer steady work in the year ahead. These include:
- Commercial refurbishments and fit-outs
- Data centres and gigafactories
- Energy efficiency upgrades
- Education and healthcare (schools, hospitals, and infrastructure)
Private housing will remain important, especially for smaller practices, but recovery is expected to be slow and uneven. The public sector and international markets may offer a more stable pipeline in the short term.
Looking ahead: Resilience over certainty
The market may be unpredictable, but practices that stay flexible, well-informed, and willing to adapt are more likely to thrive. Whether it’s navigating a sudden shift in global trade policy or adjusting to delayed planning timelines, resilience is becoming a defining trait for success.
How Milient helps architecture firms stay ready
At Milient, we help architecture practices simplify the complex. Our software gives you control over projects, people, and time – so you can focus on delivering great work, not chasing spreadsheets.
Whether you need clearer resource planning, faster reporting, or better project visibility, our tools are made for practices like yours. Check out how other firms use Milient, view a short demo, or book a meeting to discuss your needs.
