The government is failing to instil widespread optimism amongst the construction sector, according to the latest Market Report from Gleeds.

The property and construction consultancy said less than half of those quizzed said they feel positive about the future of the sector. The figure shows a drop in confidence when compared to the 70% who believed the industry was a priority for the Labour party when it was elected last year.

Gleeds has described the sector as “fragile but gradually stabilising” in its Construction Market Report Q3 2025. 

In its manifesto, Labour pledged to ‘get Britain building again’, but progress has been slow says Gleeds and a lack of clear direction has left many feeling frustrated.

The news comes as Labour prepares for its annual conference in Liverpool, taking place from 28 September to 1 October.

Gleeds’ report found interest rates and inflation remain the biggest perceived threat to growth, closely followed by supply chain capacity, investor confidence and the impact of continuing global unrest.

As insolvency figures begin to dip, the report found just 15% of those questioned had been involved with a project impacted by company collapse over the quarter, despite the industry continuing to experience the highest number of businesses going bust in the year to July, making up around 17% of all cases.

Meanwhile 45% reported that they or a member of their supply chain had refused a tender in the previous three months, down from 80% this time last year. When asked about proposed legislation banning retentions and introducing fines for late payments, over a third said they believed such a move would further improve supply chain resiliency.

Brian McArdle, managing director at Gleeds in the UK, said: “Our Market Report shows a fragile but gradually stabilising picture of construction under a Labour government. The sector continues to come under strain from insolvencies, inflation, and labour pressures, but opportunities do exist in public housing, healthcare, education, infrastructure and commercial - success will depend on converting government spending commitments in these areas into real project delivery, while safeguarding supply chain resilience.”

In the consultancy’s Q2 survey, 37% said their projects had been held up by the Building Safety Regulator process, with many raising concerns that it was a major threat to project delivery and cost management.

In the wake of announcements that the BSR would move from the Health and Safety Executive (HSE) as part of a wider package of reforms, that figure has fallen to one in four during Q3, however some noted that the process is still having a significant impact on residential schemes in the capital in particular.

Click here to read the full report.