Donald Trump’s economic disruptions are hammering the UK’s building industry, with new project values plummeting by over a third in the three months to February, according to data from Glenigan. Major developments worth more than £100m have been hit hardest, as geopolitical instability deters investment and fuels market volatility.
The slowdown spans office building, civil engineering and residential housing, threatening Chancellor Rachel Reeves’s growth plans. The UK economy relies heavily on property, with consumer spending and financial services tied to home sales and construction activity.
Consumer reluctance to buy homes, driven by affordability concerns and uncertainty from Trump’s policies, is worsening the downturn. Developers are exploiting the crisis to pressure councils into dropping requirements for affordable housing and public amenities, focusing instead on high-end buyers.
Glenigan’s economics director Allan Wilen warned that market volatility is now dictating daily prices, with hopes for a recovery in the second half of the year hanging in the balance. The government faces a twin dilemma: lost tax revenue from stalled projects and an over-reliance on the private sector to deliver homes.
