Small builders reported rising activity in the second half of 2025, but the upturn was held back by a shortage of skilled workers needed to deliver the work.
Activity increased across the market in H2 2025, with the Federation of Master Builders (FMB) and Chartered Institute of Building (CIOB) State of Trade survey showing workload at a net balance of +22%.
The report said all the main indicators remained positive, but growth had slipped to a “slower pace” than in the first half of the year.
Repair, maintenance and improvement posted the strongest increase, with workload at +26%, while housebuilding followed at +23%.
Industrial and commercial work, and other specialist contracting, also stayed in positive territory, but at much lower levels, the survey of 493 businesses found.
Renovation and home improvement were the most common activities, both cited by 70% of respondents, while major works followed at 65%.
However, the survey suggested the biggest constraint on that activity was labour.
Nearly three quarters of respondents, 72%, said they had been affected by a lack of skilled tradespeople, with almost half, (49%), reporting that shortages had delayed jobs. More than a fifth (22%) said they had led to work being cancelled.
Carpenters and bricklayers remained the hardest trades to recruit, but firms also struggled to find people with knowledge of building safety, sustainable construction and new technology.
The survey also found that 42% of firms had changed contractors in H2 2025. Among those, almost a quarter said the previous contractor had become insolvent or ceased trading.
