The Six Biggest Challenges Facing UK Trades in 2026

There is high business confidence among UK tradespeople for the year ahead. This is despite a challenging 2025, facing rising costs, customer cancellations and a prevalent mental health strain on workers.

A new “UK State of the Trades Report” has been released, following a survey of 500 UK tradespeople by Jackson Woodturners, revealing that the majority, 90% of tradespeople have experienced disruptions to their work last year. However, looking ahead, business confidence is running high as we move into 2026. 

The areas with the highest confidence rates include: the availability of work (60%), business finances (53%) and confidence adapting to new technologies at work (50%).

Despite ongoing economic uncertainty and disruption over the past few years, Brits are continuing to invest in their homes. Most tradespeople expect steady demand in the year ahead and are preparing to raise prices to reflect increasing costs and customer demand. But while optimism remains strong, the report highlights that 2026 will also bring challenges for those in the industry, from cost pressures and regulatory red tape, to burnout and skill shortages.

The 6 biggest challenges facing tradespeople in 2026 and expert tips on how to navigate them

Lucie Levesley, director at Jackson Woodturners explains,

1) Rising material and operating costs

Rising material costs have caused noteworthy disruption for 43% of tradespeople in 2025 and over a quarter are worried about this spilling over into 2026. Tradespeople are responding with average price hikes expected to be around 9.5% in 2026.

The key to successful increases in day rates is to communicate clearly with new and existing clients. Be transparent about price increases and the reasons for them. To help reduce the impact of rising costs further, now is a great time of year to review supplier contracts and bulk-buy essentials. 

2) Customer pressure to lower quotes

The majority, 85% of tradespeople, have been asked to reduce prices over the past year, which can be frustrating for hardworking, highly skilled workers. The cost of living is impacting everyone, but this includes tradespeople themselves and their businesses. So whilst it's understandable that everyone wants to save money, tradespeople shouldn’t feel pressured to do so. Especially when confidence around the availability of work in 2026 is high (survey figures revealed that the majority of respondents are confident about this area, 60%).

When facing these conversations, be understanding but firm, and emphasise your value and workmanship. Perhaps offer tiered pricing options for the work, reducing the scope of the project alongside the price, instead of offering “discounts”.

3) Mental health, loneliness and burnout

9 in 10 tradespeople have felt stressed in 2025, with over a third (36%) feeling stress on a daily or weekly basis. What's more, 82% also admitted to feeling burnt out at some point. 

Stress and burnout aren’t the only mental health issues facing tradespeople; loneliness has impacted almost three-quarters of tradespeople last year, with a fifth feeling lonely on a daily or weekly basis. 

Regarding symptoms of depression, two-thirds have also experienced these symptoms at some point in the last year. These figures are concerning, given that trades in the construction space are the industry most at risk of suicide.

Whilst there is no easy solution to these health issues, mental health expert Dr Luke Sullivan, Clinical Psychologist and Founder at Men’s Minds Matter, has shared guidance which can support mental health in the workplace within the wider State of the Trades report. These include learning to spot early warning signals; assessing your load, not your limits; redistributing rather than internalising; protecting your boundaries; and talking before you tip!

4) Shortage of skilled labour

Confidence in finding reliable contractors remains below 50%, a challenge which has been hitting the industry for a number of years. 

Again, there is no silver-bullet solution, but tradespeople can face the issue head-on by investing in apprenticeships and training, looking to build long-term local partnerships with schools and colleges around the country. The best place to start is to speak with other tradespeople who have implemented apprenticeship schemes, or visit the government website for guidance.

5) Regulation and red tape

One in six cited regulation and red tape as a disruption for their business in 2025, suggesting that it is not just the practical challenges that cause tradespeople headaches. 

2025 conversation around a range of regulations, including things like the Future Homes Standard and Renter’s Rights Bill, has often caused confusing communication and difficulty planning within the sector. It can be difficult to keep up and in 2026, further regulations may come into play with possible changes to things like business and personal taxation hitting the headlines recently.

Keeping informed through trade associations, compliance software, and ongoing training is essential to remain compliant - avoiding project delays or possible fines. 

6) Technology and digitalisation

Technology is moving fast, making it hard to keep up, and whilst 50% of tradespeople feel confident with this, many still lag behind in digital adoption - one in six are concerned about how it may impact their work in the year ahead.  

The headlines are filled with talk about how AI is replacing people, however, there are many positives that modern technology can bring to the job. It’s about finding the right tools to support you and your business. Let it take some of the stress out the the job, particularly any tools which support marketing, finance and admin tasks. 

The challenge is knowing where to start and which will be the most impactful for your business. A few popular digital tools within the trade space include: site safety apps such as, Safety Culture and SiteDiary; tool tracking apps like ShareMyTools; and marketing and design apps like Canva. 

Lucie adds,

“There’s a real sense of optimism among tradespeople as we head into 2026. Many have weathered a tough few years and are now entering a period of more stable demand, with growing confidence in work availability, business finances, and technology. But this optimism is cautious; higher operating costs, customer pressure to keep prices low, and ongoing financial uncertainty continue to challenge profitability across the sector.”

“Behind the numbers, there’s also a human story. Many tradespeople are feeling the strain, with widespread reports of stress, burnout and fatigue after another demanding year. Looking ahead, 2026  needs to be about balance, with fair pricing and  smarter systems that protect both business and personal wellbeing.” 

Source : Jackson Woodturners

Image : 520748383 / grinny / shutterstock

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