The UK construction industry is showing a clear return to form in 2025, with a new survey revealing a significant rise in workloads, enquiries, and employment.

The report from the Federation of Master Builders (FMB) and the Chartered Institute of Building (CIOB) marks the first simultaneous growth in all three metrics since the second quarter of 2023. This confidence is particularly strong in Scotland, which has seen workloads increase by 30% and enquiries rise by a substantial 56%.

However, despite this promising turnaround, homeowners may still face longer waits, rising prices, and even cancelled projects. The report highlights that a severe shortage of skilled tradespeople and persistent material price increases are holding projects back. According to the survey, a third of firms are struggling to recruit carpenters, closely followed by roofers and plumbers. A majority of firms (64%) also reported difficulty finding workers with new building safety regime knowledge. These shortages have directly affected 61% of businesses, causing job delays for almost half of them and cancellations for nearly a quarter.

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Making matters worse for consumers, climbing costs continue to put pressure on the industry. The survey found that three-quarters of builders have experienced a rise in material prices, while two-thirds report paying higher wages. As a result, 61% of companies have been forced to increase the prices they charge.

Paul Gandy, President of the CIOB, said the skills shortage is an issue the industry knows "all too well," and it continues to create "real challenges" for both builders and the public.

"SMEs are the backbone of our industry, yet too often they are held back by issues such as late payments, and barriers to taking on apprentices," he said.

Brian Berry, Chief Executive of the FMB, stated that while it is encouraging to see the sector "getting back on its feet," the reality is that many homeowners could still face delays or higher costs. He warned that if skills shortages and planning delays are not addressed, the economic recovery could be slowed down.

"The industry is ready to build, but it needs support to do so," he added.

The full SME State of Trade Survey can be read here.