Education construction booms with strongest growth since 2020

Latest News Mon, Feb 24, 2025 7:34 AM

The UK education construction sector is at a pivotal moment, experiencing its strongest quarterly growth since 2020.

After a prolonged period of underperformance, successive increases in output during Q2 and Q3 2024 indicate a shift in momentum, says AMA Research.

While new build projects remain constrained by budget pressures, the sector is seeing renewed investment in refurbishment and maintenance, particularly as funding is redirected to address critical issues like RAAC remediation.

This prioritisation of safety and structural integrity underscores the evolving nature of spending within the sector.

Following the report from the Education Construction Market UK 2024-2028, editor of the report, Anne Williams, has collated five key findings from the report to highlight the sector.

During Q2 and Q3 of 2024, education construction experienced the strongest quarterly growth since 2020.

£1 billion has been pledged by The School Rebuilding Program for the purpose of rebuilding or refurbishing 500 schools over the next decade, addressing deteriorating school estates and increasing demand for modern, energy-efficient buildings.

Safety concerns regarding Reinforced Autoclaved Aerated Concrete (RAAC) and asbestos in schools are being addressed by the government. Targeted funding for mitigation and replacements are being offered for schools with RAAC, with larger-scale projects being supported through the Rebuilding Programme.

The sector is currently experiencing construction cost pressures, such as labour shortages and rising material prices. Furthermore, project timelines and budgets have been impacted by economic factors, some of which include post-pandemic recovery and Brexit-related uncertainties.

The use of modular and prefabricated construction techniques is on the rise, being the result of an increased pressure to deliver projects quickly and cost effectively. This therefore enables the swift deployment of educational facilities in response to urgent demand for new school places.

Anne Williams said: “Looking ahead, our forecasts suggest that growth will exceed 9% in 2024, with double-digit expansion on the horizon for 2026. However, challenges persist, particularly in higher education, where financial strains are limiting large-scale investments despite a modest boost from tuition fee increases.

“The education sector remains a cornerstone of UK construction, and with a strategic focus on modernising learning environments and implementing sustainability measures, the coming years present significant opportunities for innovation and long-term resilience.”

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