Is 2026 a Good Year to Start a Trades Business in the UK?
Is 2026 a good year to start a trades business in the UK? Based on the current market, yes – but the picture varies significantly by trade and region. Demand for skilled tradespeople consistently outstrips supply, wage growth is real, and consumers are still spending on home improvements. At the same time, material costs and competition for the best jobs require you to run your business more professionally than ever before.
Here is an honest assessment.
What the Market Looks Like in 2026
The UK construction and trades market in 2026 is driven by several converging forces:
The skills shortage is real and growing. The Construction Industry Training Board (CITB) projects the UK will need over 250,000 additional construction workers by 2028 to meet demand. Qualified tradespeople – particularly gas engineers, electricians, and plumbers – are in short supply across most UK regions. If you are qualified, you have leverage.
Energy transition is creating new demand. EV chargers, heat pumps, solar panels, and battery storage are driving significant new work for electricians, gas engineers, and plumbers willing to add qualifications. The Boiler Upgrade Scheme and OZEV grant schemes mean customers are incentivised to have this work done now.
Home improvement spending remains strong. While the cost-of-living squeeze reduced discretionary spending in 2023-24, homeowners with equity are continuing to invest in their properties – particularly kitchens, bathrooms, extensions, and energy efficiency improvements. HMRC’s construction output data shows repair and maintenance consistently running above long-term averages.
Which Trades Are Strongest in 2026?
Strongest market conditions:
– Electricians – EV charging, solar, consumer unit upgrades, EICR surveys
– Gas engineers / heating engineers – heat pump transition, boiler replacement, annual servicing demand
– Plumbers – ongoing domestic demand, bathroom renovations, heat pump pipework
– Solar installers – SEG demand, battery storage growth, summer peak season
– Roofers – housing stock maintenance backlog
Good but more competitive:
– Builders and general contractors
– Decorators
– Landscapers (spring/summer peak)
Harder going:
– New build specialists – housebuilding volumes have been suppressed but are recovering following planning reform
Challenges for New Trades Businesses in 2026
Material costs have stabilised from the 2021-22 peaks but remain elevated. Timber, copper, insulation, and specialist heating components are all more expensive than 2019 levels. Price your jobs to cover current material costs, not last year’s.
Wage expectations – if you employ anyone, finding and retaining good people is harder and more expensive than it was five years ago. Factor this into your growth plans.
Competition for quality leads – review platforms are crowded. Getting to 30+ Google reviews as quickly as possible is the single most important marketing task for a new trades business.
Frequently Asked Questions
Is it a good time to go self-employed as a tradesperson in 2026?
Yes, for most trades. Demand is strong, the skills shortage means qualified tradespeople are in a strong negotiating position, and going self-employed allows you to earn significantly more than employed rates in most trades. See HMRC’s guidance on working for yourself for what self-employment involves.
Which trade is most in demand in the UK in 2026?
Electricians and gas engineers are facing the highest demand relative to supply, particularly those with EV charging, solar, or heat pump qualifications. Plumbers with heating qualifications are close behind. See CITB’s Construction Skills Network report for the most current data.
How much can a trades business make in its first year?
This varies by trade and how quickly you fill your diary. A sole trader electrician or gas engineer who trades full-time from day one typically generates £35,000-£60,000 in their first year. See our trades hourly rate guides for trade-specific earnings benchmarks.
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