UK Education Construction Market Report 2024-2028
Available as an Instant Download PDF
The UK Education Construction Market Report 2024-2028 provides a comprehensive analysis of the sector, examining market performance, key investment trends, and future growth prospects. It explores the impact of government funding, school rebuilding initiatives, and university infrastructure projects, while assessing construction cost pressures, supply chain challenges, and workforce constraints. The report also highlights regulatory developments, sustainability initiatives, and the increasing role of Modern Methods of Construction (MMC) in shaping the sector.
£1,699.00 Exc. VAT
Market Summary
The UK education construction sector is experiencing a strong recovery, with Q2 and Q3 2024 marking the highest growth in output since 2020.
Forecasts indicate 9% growth in 2024, with double-digit expansion expected by 2026. While new builds remain limited due to budget constraints, investment in refurbishment and maintenance is rising, particularly to address RAAC remediation. Universities face financial pressures despite a tuition fee boost in 2025/26, affecting large-scale developments.
Report Overview
The UK Education Construction Market Report 2024-2028 provides a comprehensive analysis of the sector, examining market performance, key investment trends, and future growth prospects. It explores the impact of government funding, school rebuilding initiatives, and university infrastructure projects, while assessing construction cost pressures, supply chain challenges, and workforce constraints. The report also highlights regulatory developments, sustainability initiatives, and the increasing role of Modern Methods of Construction (MMC) in shaping the sector.
Market Size
The UK education construction sector is on track for 9% growth in 2024, marking a strong recovery following years of underperformance.
While new build activity remains limited, investment in repair, maintenance, and sustainability-driven upgrades is driving market demand, particularly in response to RAAC remediation and net-zero commitments.
Market Analysis
The UK education construction sector is undergoing a period of recovery, with 9% growth projected for 2024 following years of subdued output. While new build projects remain constrained due to budget limitations, refurbishment and maintenance work—particularly in response to RAAC safety concerns and sustainability targets—is driving market activity.
The higher education sector faces financial pressures, limiting large-scale investments, but demand for modern learning environments, student accommodation, and digital infrastructure continues to shape long-term opportunities. With government funding, regulatory changes, and Modern Methods of Construction (MMC) playing a growing role, the sector is poised for steady expansion in the coming years.
Forecast
The UK education construction sector is set for steady growth from 2024 to 2028, with an expected 9% increase in 2024, followed by double-digit expansion by 2026.
Key Companies Discussed
The UK education construction sector is led by major contractors with expertise in both new builds and refurbishments, alongside a highly fragmented network of regional firms handling smaller-scale projects. Morgan Sindall, BAM Construction, and Willmott Dixon dominate large-scale developments, leveraging framework agreements and government contracts to secure school and university projects. These firms specialize in Modern Methods of Construction (MMC), sustainability, and complex refurbishments.
Meanwhile, a significant share of the market is held by regional and local contractors, such as Coulson Building Group, Pacy & Wheatley Construction, and Jarvale Construction, which focus on regional school renovations, RAAC remediation, and maintenance projects. Morrison Construction is also a key player in delivering education projects across schools, colleges, and universities. Additionally, firms like Complete Construction specialize in refurbishing and modernizing learning environments, ensuring compliance with sustainability standards and evolving building regulations.
This mix of national and regional players creates a competitive landscape, with a growing emphasis on cost efficiency, innovation, and the ability to meet rising demands for safer, modern, and sustainable education facilities.
Table of Contents
- Introduction
- Construction Market Summary
- Education Sector Market Summary
- PESTEL Analysis
- Project Pipeline & Contract Awarded
- Regional Analysis
- Suppliers: contractors and funding
- Market Forecasts
- Appendix
List of Charts
Chart 1. Construction Output (GB) 2018 to 2028 by value (£bn at current prices)
Chart 2. Construction Output by Sector 2023
Chart 3. Construction Output by Sector In 2022 & 2023, and the growth rate
Chart 4. Non-Residential New Work Output by Sector, 2022 & 2023
Chart 5. Non-Residential New Work Output by Sector, 2022 & 2023 – data
Chart 6. Non-Residential New Work Output by Sector (£bn), 2020 & 2023
Chart 7. Education Sector Private and Public Output (£bn)
Chart 8. New Orders (£bn)
Chart 9. Subsectors – Education Sector
Chart 10. Comprehensive Institutional Breakdown, 2022 – 2023
Chart 11. Numbers of Education establishments in England, Wales, Scotland and Northern Ireland, 2018 – 2024
Chart 12. PESTEL Analysis of the Education Sector
Chart 13. Current Education Pipeline repartition across subsectors by Value (£m) (as at November 2024)
Chart 14. Contracts Awarded from 2015 to 2024 in the Education Sector, total number of contracts and Value (£m)
Chart 15. Contracts Awarded per quarter 2021 to 2024 in the Education Sector, total number of contracts and Value (£m)
Chart 16. Contracts Awarded for Nursery & Kindergarten Schools, 2015 to 2024, total number of contracts and Value (£m)
Chart 17. Contracts Awarded for Private & Church Schools & Colleges, 2015 to 2024, total number of contracts and Value (£m)
Chart 18. Contracts Awarded for Special Schools, 2015 to 2024, total number of contracts and Value (£m)
Chart 19. Contracts Awarded for State Primary Schools, 2015 to 2024, total number of contracts and Value (£m)
Chart 20. Contracts Awarded for State Secondary Schools, 2015 to 2024, total number of contracts and Value (£m)
Chart 21. Contracts Awarded for Trade Colleges & Training Centres, 2015 to 2024, total number of contracts and Value (£m)
Chart 22. Contracts Awarded for State Colleges & Universities, 2015 to 2024, total number of contracts and Value (£m)
Chart 23. Sub sectors Average Contracts Awarded per year
Chart 24. UK Education Construction pipeline by Region – Value (£million) (as at November 2024)
Chart 25. UK Education Construction pipeline by Region – Number of projects (as at November 2024)
Chart 26. London – Education Construction Pipeline – Top Projects by Value (as at November 2024)
Chart 27. East Midlands – Education Construction Pipeline – Top Projects by Value (as at November 2024)
Chart 28. East of England – Education Construction Pipeline – Top Projects by Value (as at November 2024)
Chart 29. East Midlands – Education Construction Pipeline – Top Projects by Value (as at November 2024)
Chart 30. North West – Education Construction Pipeline – Top Projects by Value (as at November 2024)
Chart 31. South East – Education Construction Pipeline – Top Projects by Value (as at November 2024)
Chart 32. South West- Education Construction Pipeline – Top Projects by Value (as at November 2024)
Chart 33. West Midlands – Education Construction Pipeline – Top Projects by Value (as at November 2024)
Chart 34. Yorks & Humber – Education Construction Pipeline – Top Projects by Value (as at November 2024)
Chart 35. Scotland- Education Construction Pipeline – Top Projects by Value (as at November 2024)
Chart 36. Wales- Education Construction Pipeline – Top Projects by Value (as at November 2024)
Chart 37. Top Clients by Value £m, Pie Chart
Chart 38. Top Clients by Value £m
Chart 39. School Condition Allocations (SCA) 2015–25
Chart 40. Devolved Formula Capital Allocations (DFC) 2015–25
Chart 41. DfE top 15 construction contractors 2022/23
Chart 42. Top 20 additional allocations for Further Education Capital Funding, 2022 and 2023
Chart 43. Key PBSA metrics for 2024 and 2025 projections
Chart 44. Top UK Endowment
Chart 45. Top Clients by Value £m, London
Chart 46. Top Clients by Value £m, East Midlands
Chart 47. Top Clients by Value £m, East of England
Chart 48. Top Clients by Value £m, North East
Chart 49. Top Clients by Value £m, North West
Chart 50. Top Clients by Value £m, South East
Chart 51. Top Clients by Value £m, South West
Chart 52. Top Clients by Value £m, West Midlands
Chart 53. Top Clients by Value £m, Wales
Chart 54. Top Clients by Value £m, Yorks & Humber
Chart 55. Top Clients by Value £m, Scotland
Chart 56. Top Contractors by Value £m, Pie Chart
Chart 57. Top Contractors by Value £m
Chart 58. Top Contractors by Value £m, London
Chart 59. Top Contractors by Value £m, East Midlands
Chart 60. Top Contractors by Value £m, East of England
Chart 61. Top Contractors by Value £m, North East
Chart 62. Top Contractors by Value £m, North West
Chart 63. Top Contractors by Value £m, South East
Chart 64. Top Contractors by Value £m, South West
Chart 65. Top Contractors by Value £m, West Midlands
Chart 66. Top Contractors by Value £m, Wales
Chart 67. Top Contractors by Value £m, Yorks & Humber
Chart 67. Top Contractors by Value £m, Scotland
Chart 68. Education Sector Forecasts: Total outputs, New Orders and Growth
Economic Trends
The UK education construction sector is experiencing renewed investment following a period of underperformance, with 9% growth expected in 2024 and double-digit expansion forecast by 2026. However, economic pressures continue to shape market dynamics.
Funding Constraints & Budget Allocation
While the School Rebuilding Program and higher education capital investment continue, much of the funding has been redirected to repair and maintenance (R&M) projects due to RAAC remediation priorities. This shift has slowed the pipeline for new school builds.
Construction Costs & Inflation
The sector faces ongoing cost pressures due to rising material and labor costs, which have escalated since 2021. Steel, concrete, and energy costs remain volatile, impacting overall project feasibility.
University Sector Financial Challenges
Despite a small boost in tuition fees many universities are struggling financially, limiting investment in large-scale new developments. However, student accommodation and campus refurbishments remain active areas.
Skilled Labour Shortages
The sector continues to face a shortage of skilled construction workers, exacerbated by post-Brexit labor constraints. This has led to increased reliance on offsite construction and modular solutions to mitigate workforce challenges.
Legislative & Regulatory Influences
The regulatory landscape for education construction is evolving, with stricter safety, environmental, and building standards shaping project requirements:
Building Safety Act & RAAC Remediation
The Building Safety Act has introduced more rigorous compliance requirements, particularly in fire safety, cladding, and structural integrity. RAAC-related risks have redirected funding from new builds to urgent safety upgrades and remediation projects.
Sustainability & Net-Zero Targets
Schools and universities are under increasing pressure to reduce carbon emissions, comply with UK net-zero targets, and adopt low-carbon construction materials and energy-efficient designs.
Procurement Frameworks & Public Funding
The role of framework agreements (SCAPE, Pagabo, Crown Commercial Service) continues to influence the sector, ensuring cost transparency and efficiency in public-sector construction projects.
As the economic and regulatory environment continues to evolve, the sector must adapt through innovation, sustainability commitments, and strategic project planning to ensure long-term resilience and growth.
Sector Analysis
The UK education construction sector is in a transitional phase, balancing growth opportunities with persistent challenges. The market is being shaped by a shift in funding priorities, where repair and maintenance (R&M) projects are taking precedence over large-scale new builds due to safety concerns, such as RAAC remediation. This reallocation of investment is altering the traditional construction pipeline, with modernization and refurbishment projects now driving demand.
At the same time, higher education institutions are facing financial strain, limiting their ability to invest in major capital projects despite a rising demand for student accommodation and digital learning spaces. However, the continued rollout of the School Rebuilding Programme and an increasing emphasis on sustainability-driven retrofits suggest a more resilient sector outlook in the medium term.
While national contractors dominate larger projects, the market remains highly fragmented, with regional and local firms playing a key role in smaller-scale renovations. Procurement frameworks continue to be a critical factor in project allocation, streamlining cost efficiency and compliance while ensuring that funding is distributed effectively across a broad network of education construction specialists.
Regional Analysis
This report offers a comprehensive regional analysis of the UK education construction sector, examining the 2024 project pipeline with forecasts extending through to 2028. Leveraging data-driven insights, it provides detailed regional comparisons, assessing project volumes, contract values, project types, and contractor market shares across the UK.
Project Pipeline & Investment Trends – London and Scotland lead in total project value, while the Southeast has the highest number of active projects.
Regions such as the Northeast and Wales have lower overall investment but remain key markets for school refurbishments and maintenance work.
Top Contractors by Region – The report identifies leading contractors in each region, from major firms like Morgan Sindall, BAM Construction, and Willmott Dixon managing large-scale developments, to regional firms specializing in refurbishments, RAAC remediation, and maintenance projects.
Major Clients & Funding Allocations – The Department for Education (DfE) remains the largest client, with local authorities and universities also playing a significant role in directing funds for new builds and upgrades.
Investment Priorities – While some regions focus on new school and university developments, others prioritize refurbishment projects, safety upgrades, and sustainability-driven improvements, particularly in response to RAAC mitigation efforts.
Procurement & Frameworks – The role of public sector frameworks such as SCAPE, Pagabo, and Crown Commercial Service continues to influence funding efficiency and regional project distribution.
Paired Report Discount
Save £250 for every two reports you buy
Discount applied in basket
Frequently bought together
Trusted by industry leaders
For more detailed requests speak to our research experts directly
Research you can depend on
Our reports go deeper to give you the insights needed to make your next strategic move.
- Detailed assessment of the market – analysis of the market structure and recent developments within the market.
- Market prospects up to 4 years – market value, opportunities, impact of Covid-19, Brexit etc.
- Detailed information – market size, influences, market factors and key players.
- Analysis by product group – market size, product mix, sector trends etc.
