Residential design and construction firms in the UK recorded improved revenue performance in 2025, despite ongoing market uncertainty, according to Houzz's latest State of the Industry report. The share of businesses reporting revenue growth rose to 38%, up from 34% the previous year, while those seeing declines edged down slightly.
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Profitability also showed signs of recovery, with fewer firms reporting falling profits and a modest increase in those achieving gains. However, the broader outlook remains cautious. Only 32% of surveyed companies expect 2026 to be a good year, while nearly half anticipate challenging conditions ahead.
The report highlights a gap between performance and expectations, with 73% of firms stating that their revenues still fell short of targets. At the same time, hiring activity has slowed significantly, with most companies maintaining current staffing levels and very few expanding their workforce.
Industry experts point to ongoing cost pressures and demand uncertainty as key concerns. As a result, many firms are focusing on efficiency and strengthening sales strategies to navigate a still-fragile market environment.
Source: www.kbbreview.com
