Interior Refurbishment and Fit Out Market Report – UK 2025-2029
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This report reviews the UK interior refurbishment and fit-out market, assessing developments across key sectors and regions. It covers market size, trends, drivers, and challenges, providing historical data from 2020 to 2024, with forecasts to 2029.
Key areas examined include:
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Public sector investment in education and healthcare
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Grade A commercial office refurbishments in London and major regional hubs
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Demand for sustainable, adaptable workspaces integrating advanced technology
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Sector performance in leisure, hospitality, retail, and office spaces
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Impact of rising costs, skills shortages, and project approval delays
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The UK interior refurbishment and fit out market is valued at £9.85bn in 2025, reflecting steady growth despite economic pressures. Public sector investment in education, healthcare, and government facilities continues to underpin demand, while Grade A office refurbishments in key cities remain resilient. The sector is being shaped by the drive for energy efficiency, sustainability, and adaptable workspaces, although retail investment remains subdued. Looking ahead to 2029, market performance will hinge on economic stability, funding levels, and the ability of contractors and suppliers to meet evolving environmental and design standards.
Key points from the report
Market Value: Estimated at £9.85bn in 2025, up 4% on 2024 at current prices, reflecting both demand and inflationary pressures.
Sector Composition: Covers Category A and B fit outs for non-residential buildings – including new build/shell & core and full refurbishments – excluding minor RMI works.
Major Sectors: Commercial offices (25%), education (23%), leisure & entertainment (20%), healthcare (12%), retail (11%), and other public buildings (9%).
Market Drivers: Public sector investment in education, healthcare, and prisons; strong Grade A office demand in key cities; focus on energy efficiency, sustainability, and adaptable workspaces.
Challenges: Retail sectors decline due to e-commerce growth and reduced consumer spending; economic uncertainty impacting private sector projects; rising material and labour costs.
Recent Trends: Post-Covid adaptations for hybrid working, repurposing of office space, growth in budget and high-end hospitality upgrades, and targeted public sector refurbishments.
Outlook to 2029: Cautiously optimistic with opportunities in healthcare, education, and leisure; performance dependent on economic stability, funding, and environmental regulation compliance.
Market Analysis
The UK interior refurbishment and fit out market is valued at £9.85bn in 2025, up 4% on last year, driven by public sector investment in education, healthcare, and prisons, alongside strong demand for Grade A office refurbishments. While retail remains weak, leisure, healthcare, and prime office projects continue to offer opportunities, supported by the push for energy efficiency, sustainability, and adaptable workspaces. Moderate growth is forecast to 2029, with the best prospects for suppliers and contractors able to deliver high-quality, regulation-compliant solutions.
Forecast
Moderate but steady growth to 2029, with performance linked to public sector investment and economic stability.
Key Companies Mentioned in the Report
Major contractors active in the UK interior refurbishment and fit out market include:
- Morgan Sindall (Overbury Plc and Morgan Lovell)
- Willmott Dixon Interiors
- Wates Smartspace & Fit Out
- Byrne Group
- Fourfront Group (Area)
- BW Workplace Experts
- Gilbert-Ash
- 8Build
- Kier Construction
- STO Building Group
- Mace Group
- VINCI Construction UK
- Multiplex
- Laing O’Rourke
- Sir Robert McAlpine
- BAM Construction
- Bowmer & Kirkland
- Skanska
- McLaren Construction Group.
Economic, Legislative, and Regulatory
The UK interior refurbishment and fit out market is shaped by a combination of economic conditions, public sector investment, and evolving building requirements.
Sustainability and energy efficiency remain major drivers, with increasing demand for retrofits that reduce carbon emissions and meet net zero targets.
Hybrid and flexible working models continue to influence office layouts, boosting demand for high-spec refurbishments and shared spaces.
The public sector, particularly education, healthcare, and justice, provides steady pipelines of work, supported by government funding. In the private sector, Grade A office space, hospitality upgrades, and experiential leisure environments are outperforming weaker segments such as retail, which remains under pressure from online shopping. Digital transformation, including smart building technologies and advanced AV/IT integration, is becoming a standard requirement in many projects.
Rising construction costs, skills shortages, and global political uncertainty present ongoing challenges, leading to market consolidation and tighter competition for high value contracts.
Product Category
*This report is based on sector analysis, however the products which generally make up interior refurbishment and fit out are as follows (data on products not within the report): –
• Partitions & Walls – Demountable and fixed partitions, glazed systems, drywall and specialist wall finishes.
• Ceilings – Suspended ceilings, acoustic panels, feature ceilings and integrated lighting systems.
• Flooring – Carpet tiles, vinyl, timber, resin, stone and other specialist floor coverings.
• Lighting & Electrical – General and feature lighting, smart lighting controls, cabling and electrical installations.
• Furniture & Fixtures – Office furniture, fixed seating, storage solutions, bespoke joinery.
• HVAC & Mechanical Services – Heating, ventilation, air conditioning, mechanical plant and ductwork.
• Decorative Finishes – Painting, wallcoverings, surface treatments and decorative panelling.
• Specialist Installations – AV systems, IT/data cabling, smart building controls, security systems.
• Washrooms & Welfare Facilities – Toilets, changing rooms, staff kitchens, tea points and break-out areas.
Regional Analysis
Activity in the UK interior refurbishment and fit out market is concentrated in areas with high commercial property density, strong public sector investment, and affluent populations. London and the Southeast dominate, driven by Grade A office refurbishments, headquarters relocations, and premium hospitality projects, alongside large-scale public sector programmes. The Midlands benefits from education, healthcare, and civic building upgrades, particularly in Birmingham, Nottingham, and Leicester.
The Northwest—led by Manchester and Liverpool—sees strong demand from commercial, leisure, and residential-to-office conversions. Yorkshire & the Northeast experience steady public sector work, especially in healthcare and education, though private sector investment is more selective. In Scotland, activity centres on Edinburgh and Glasgow, with a mix of corporate fit outs, university projects, and government buildings. Wales and Northern Ireland see smaller volumes but benefit from targeted regeneration schemes, healthcare investment, and specialist commercial refurbishments.
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