In its Construction Market Intelligence Q3 report, healthcare construction management consultancy RLB found that despite wider market uncertainty, healthcare continues to offer a relatively stable pipeline, supported by NHS estate renewal requirements, long-term capital investment programmes, and a growing need to modernise ageing healthcare infrastructure.
The report found that, after a challenging period, the market returned to modest growth in 2025, with public sector investment in healthcare providing a significant proportion of activity. This growth should strengthen through 2026 and beyond, although it is likely to be measured rather than rapid. New hospital developments, estate rationalisation programmes, community healthcare facilities, and backlog maintenance projects are all supporting demand.
The report reveals that key growth drivers include:
- NHS estate modernisation: a significant proportion of the NHS estate is ageing and requires major refurbishment or replacement. The government’s New Hospital Programme remains a cornerstone of healthcare construction activity. The programme was reset in 2025 to provide a more realistic timetable aligned with funding and market capacity.
- Capital investment: NHS England continues to allocate significant capital funding (circa £5bn for 2025/26) to support operational improvements, backlog maintenance, equipment replacement, and strategic developments.
- Community and outpatient care: the shift towards community-based healthcare and integrated care systems is generating opportunities beyond acute hospital projects continues. Investment in diagnostic centres, community hubs, mental health facilities, and primary care estates is expected to increase seeking to reduce pressure on hospitals while improving patient access.
RLB’s national head of healthcare Adam Hurst said: “The outlook for 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.
“For consultants, supply chain partners, and contractors, the healthcare sector represents an attractive construction market. Success will depend on sufficiently skilled workforce, proven healthcare delivery experience, capability in modern methods of construction (MMC), and the ability to navigate evolving NHS procurement and sustainability requirements.”