Government investment, NHS estate modernisation and growing demand for community healthcare facilities are expected to support continued growth in the UK healthcare construction market, according to new analysis from Rider Levett Bucknall (RLB).
The consultancy’s latest Construction Market Intelligence report identifies healthcare as one of the more resilient areas of the construction sector, despite continuing uncertainty across the wider market.
Following a challenging period, healthcare construction returned to modest growth in 2025, with public sector investment accounting for a significant proportion of activity. RLB expects growth to strengthen through 2026 and beyond, although at a measured rather than rapid pace.
New hospital developments, estate rationalisation, community healthcare facilities and backlog maintenance are among the areas supporting demand.
The report identifies modernisation of the NHS estate as a key driver, with a significant proportion of healthcare buildings requiring major refurbishment or replacement. The New Hospital Programme is expected to remain an important source of construction activity following its reset in 2025, which introduced a revised timetable for delivery.
Capital investment is also supporting the market, with funding being directed towards backlog maintenance, equipment replacement, operational improvements and strategic developments.
RLB also points to the shift towards community-based care as a growing source of construction activity. Investment in community diagnostic centres, neighbourhood health facilities, mental health services and primary care estate is expected to generate further opportunities as the NHS seeks to provide more services outside acute hospitals.
Adam Hurst, national head of healthcare at RLB, said: ‘The outlook for the UK healthcare construction market is positive. While funding constraints and delivery challenges remain, healthcare benefits from strong underlying demand, political priority and a substantial pipeline.
‘Public investment in health infrastructure is expected to remain a key contributor to construction growth through the remainder of the decade.’
However, Hurst said delivery would depend on the availability of a sufficiently skilled workforce, healthcare construction experience and the ability of the supply chain to respond to changing NHS procurement, sustainability and modern methods of construction requirements.
