By Daniel Austin, CEO and co-founder at ASK Partners The 2025 Autumn Budget offered limited stimulus for the housing market and, persistent headwinds such as sticky inflation, higher for longer interest rates, elevated construction costs, and slow planning processes continue to impact development viability. But there are still reasons for cautious optimism. The UK economy is forecast to grow by 1.4 per cent this year. This is expected to outperform the eurozone and should support investor confidence. The UK also remains an attractive destination for global capital, with ongoing interest from the Gulf, Southeast Asia and deepening UK United States investment links, particularly through the technology sector. ASK recently surpassed £2 billion in total lending. This milestone reflects the importance of disciplined, relationship-led financing and flexible structuring in a challenging market. It also highlights the growing appetite for income-producing real estate debt. With public equity markets at elevated levels and real estate pricing looking comparatively attractive, 2026 is likely to see increasing interest in secured credit strategies that offer predictable cashflows and downside protection. Looking ahead, several segments of the market offer clear potential for investors. The flight to quality is expected to continue as businesses compete for modern, energy efficient and amenity rich workspace that supports hybrid working. Best-in-class offices in central London continue to achieve strong rents and stable yields. Although secondary and tertiary offices face challenges linked to obsolescence and environmental compliance costs, some well-located secondary assets are becoming more investable as prime rents rise. Refinancing pressures and selective refurbishment opportunities will provide value-add prospects for well-capitalised investors able to move quickly. Buyer appetite is expected to soften due to higher taxation, reduced ISA allowances and the absence of stamp duty reform. Despite this slowdown, the UK remains structurally undersupplied in housing. With so many smaller landlords exiting the sector due to increased costs and regulatory complexity, professionally managed rental formats are becoming more important. Build-to-rent and co-living are particularly well positioned to serve younger, mobile workers who seek affordability, connectivity and community. Mid-market suburban and commuter belt schemes may outperform prime central locations, especially in areas benefiting from new infrastructure such as the Lower Thames Crossing. Storage, logistics and light industrial assets remain among the most resilient parts of the market, supported by the continued expansion of online retail, SME activity and the need for flexible urban distribution space. Alongside these uses, demand for data centres has become a major structural driver. Growing adoption of artificial intelligence, cloud services and high-performance computing is placing unprecedented pressure on power capacity and suitable land, making data centres an increasingly strategic real estate category. The combination of long-term contracted income, critical infrastructure status and limited supply of appropriate sites means this segment is likely to remain strong. Mixed-use industrial schemes that accommodate logistics, data infrastructure and urban services will offer particularly attractive, income-led opportunities in 2026. The hotel sector has rebounded strongly, supported by domestic leisure travel, international visitors and the ability to adjust room rates in line with inflation. Conversion opportunities, particularly the transformation of under-utilised office buildings into hotels, are creating new avenues for investors. The asset class continues to appeal to private investors and family offices seeking income diversification and long-term value. Operational real estate, including healthcare, specialist care, education and supported living, provides stable and often inflation linked income streams. Demographic shifts, including an ageing population and rising demand for specialist services, support the long-term resilience of these sectors. Although certain subsectors such as life sciences are recalibrating, operational assets backed by strong occupier demand remain attractive. Conclusion In 2026 the UK real estate market is likely to offer opportunities grounded in the resilience of the asset class rather than wider economic growth. As interest rates begin to edge lower and transaction pipelines reopen, investors who have been waiting on the sidelines may return. If base rates move toward 3.5 to 3.75 per cent, many schemes that have not been viable in recent years could start to work again. Those who focus on income-producing assets, structure deals carefully and navigate planning challenges with discipline will be best positioned to secure stable returns in a subdued economic environment. Building, Design & Construction Magazine | The Choice of Industry Professionals

The UK construction sector enters 2026 facing a challenging mix of cost pressures, labour shortages, and regulatory change, but also opportunities to adapt through technology, sustainability, and operational resilience. “This year will be defined less by headline growth and more by how firms manage risk and deliver reliably,” says Laura Capper, Head of Construction at NatWest Group. Public projects anchor the market Infrastructure, healthcare, education, and energy projects continue to provide a stable foundation for construction activity. While private housing and industrial sectors are recovering, commercial demand remains uneven. “Government commitments give firms a pipeline, but converting this into work on site requires flexibility and careful planning,” Capper explains. This balance between public stability and private sector caution will shape investment, scheduling, and workforce planning throughout 2026. Cost pressures remain elevated Rising labour, material, and energy costs continue to challenge firms. Contractors are embedding contingencies into contracts and improving cost management to maintain margins. “Managing inflation isn’t just about pricing,” Capper notes. “It’s about planning, risk management, and execution on site.” Long-duration projects are particularly exposed to cost fluctuations, making accurate forecasting and early-stage procurement more important than ever. Workforce and skills under the spotlight Labour shortages remain a structural issue. Skilled trades, technicians, and supervisory roles are in short supply, with demographic trends and reduced migration inflows intensifying competition. “A future-ready workforce combines technical ability with flexibility,” says Capper. “Apprenticeships, retraining, and flexible working are essential to keep projects on track.” Retention and succession planning will be crucial for SMEs and larger contractors alike, ensuring continuity in delivery and operational performance. Digital and AI tools support delivery Technology is being adopted pragmatically, with BIM, digital twins, drones, IoT monitoring, and AI-assisted planning helping firms reduce risk, improve safety, and enhance efficiency. “Technology is about smarter delivery, not growth,” Capper explains. “Firms that use digital tools effectively can make better real-time decisions and avoid costly rework.” Digital integration across design, planning, procurement, and on-site operations is gradually becoming a differentiator. Sustainability as a delivery requirement Carbon reduction, energy efficiency, circular design, and whole-life carbon assessment are increasingly embedded in project planning. “Sustainability is now part of operational delivery,” says Capper. “Low-carbon materials, energy-efficient designs, and retrofit initiatives are expected by clients and increasingly enforced by regulators.” This is particularly true in public sector and infrastructure projects, where environmental compliance is closely monitored. Client expectations are evolving Clients are demanding more transparency, reliability, and speed. Contractors who can deliver on time, on budget, and with reduced environmental impact will stand out. “Predictable outcomes, strong communication, and responsiveness will define success in 2026,” Capper adds. Collaboration with supply chains and digital reporting tools are helping contractors meet these expectations while managing risk. Looking ahead 2026 is set to be a year of practical resilience, not headline expansion. Firms that combine strong planning, workforce development, digital adoption, and sustainability compliance are best positioned to navigate uncertainty. “Adaptability is the sector’s greatest strength,” Capper concludes. “Those who focus on delivery, risk management, and operational performance will maintain stability and reputation in a challenging year.” Building, Design & Construction Magazine | The Choice of Industry Professionals

Laura Stone, COO at Greencore Homes, comments: “The Government’s ambition to invest £13 billion in creating ‘zero bill’ homes represents a significant opportunity to improve comfort, cut energy costs and accelerate progress towards Net Zero. Retrofitting existing properties to achieve this can be complex, disruptive and expensive. Technologies such as heat pumps and solar panels can only truly reduce bills when the home itself is sufficiently insulated and airtight. “That’s why future-proofing new homes from the outset matters. Designing new homes properly now is far more cost-effective and far less disruptive than trying to fix performance issues later down the line. Long-term energy performance, not short-term compliance, is what ultimately protects households and ensures public investment delivers real value for the long-term. “Action must go beyond retrofitting technologies alone and focus much more on building energy-efficient, future-proofed homes from the very start of construction. When homes are designed with high levels of insulation, natural materials and integrated renewables, zero energy bills become achievable without the need for costly upgrades. “At Greencore Homes, we’re proving that our homes can deliver EPC A performance, low running costs and comfort from day one. Our homes are built to Passivhaus standards using natural, non-toxic materials to ensure superior insulation, airtightness and comfort. Standard features include triple-glazed windows, air source heat pumps, optimised solar PV panels and EV charging points, reducing bills and carbon while giving people homes that are healthier and more comfortable to live in. Warm homes should be treated as critical national infrastructure – every year of delay is a missed opportunity to improve living standards, strengthen energy security and accelerate the UK’s progress towards net zero.” Building, Design & Construction Magazine | The Choice of Industry Professionals

More than 1,600 UK businesses filed for administration in 2025 – a 5% decrease compared to last year – according to analysis by full-service law firm Shakespeare Martineau. However, the figure (1,631) remains 22% higher than in 2022, signalling that UK companies are still facing significant pressures despite some signs of economic stabilisation. Notably, retail filings surged by 24%, rising from 237 in 2024 to 293 in 2025, making it the hardest-hit sector by a clear margin, according to data from The Gazette Official Public Record. Greater London remained the region with the most business failures, recording 390 administrations in 2025, compared with 393 in 2024. Andy Taylor, partner and head of restructuring at Shakespeare Martineau, said: “While the year-on-year drop in administrations is worthy of note, the overall picture for business remains challenging. “With 1,631 appointments being made, we are still seeing more businesses enter administration than in 2021 and 2022, and distress remains widespread across multiple sectors and regions.” Along with retail, hospitality, manufacturing, real estate and construction were the worst-hit sectors, collectively accounting for 56% of all administrations. All sectors, apart from retail, saw a slight decline in filings compared to last year. Andy said: “The retail sector remains under significant pressure. Despite a slight easing of inflation and interest rates, consumers remain cautious and price-sensitive. Footfall continues to lag and many businesses have not been able to adapt to the new retail landscape. “The drop in filings in hospitality, manufacturing, real estate and construction could be the result of earlier failures having already removed the weakest operators. It may also reflect a slowdown in activity, with firms putting investment and hiring decisions on hold due to continued uncertainty.” Geographically, Greater London filings fell 1% (393 to 390). The North West increased by 15% to 286, along with the South East by 11% to 207. Yorkshire and the Humber (121) and the West Midlands (120) made up the rest of the top five. Andy said: “While Greater London continues to record the highest number of administrations, the regional picture is becoming more mixed. “The increases in the North West and South East suggest that financial distress is spreading beyond the capital, particularly in areas with high concentrations of consumer-facing and industrial businesses. “This underlines that the challenges facing companies are not confined to one region and that pressures remain widespread across the UK economy.” Despite an overall drop in administration volumes, Andy warned businesses not to be complacent. He said: “These figures, while worthy of note, do not detract from the fact that the trading environment for many businesses remains highly challenging. Many companies are surviving through short-term fixes, but without sustained growth, improved consumer confidence and better access to funding, there are still choppy waters to navigate. “Geopolitical uncertainty, post-election policy shifts, energy costs, the aftermath of the recent budget, and continued weak economic growth are still creating an unpredictable environment for business. Firms must remain agile and, above all, proactive. “Our advice remains unchanged – seek expert help early. The sooner directors act, the more tools are available to protect the business and find a viable path forward.” Businesses filing for administration in 2025 By sector Total By region Total Administrative 17 British Isles 4 Agriculture 8 East Midlands 93 Arts and entertainment 53 East of England 112 Automotive/transportation 87 Greater London 390 Construction 143 North East 57 Education 31 North West 286 Engineering 45 Northern Ireland 31 Financial 100 Scotland 67 Health and social 116 South East 207 Hospitality 169 South West 113 Information and communication 75 Wales 30 Manufacturing 164 West Midlands 120 Mining and quarrying 2 Yorkshire & The Humber 121 Others 2     Professional services 71     Public admin and defence 10     Real estate 147     Retail 293     Utilities 98     Total 1,631 Total 1,631 Building, Design & Construction Magazine | The Choice of Industry Professionals

Manufactured steel is one of the few materials that can move from design intent to site reality with very little “interpretation”, as long as it’s made precisely and backed by the right paperwork. That matters even more in Great Britain now that CE marking is recognised only until 30 June 2025, and from 1 July 2025 CE marking is no longer acceptable in GB for in-scope construction products, putting UKCA marking and clear conformity evidence firmly in the spotlight. Steel is often chosen because it’s predictable: you can design it, fabricate it, deliver it, and assemble it quickly. But that promise depends on components arriving to spec, fitting first time, and carrying the documentation that proves they’re compliant. That’s why, when teams are sourcing fabricated sections and components from suppliers such as NW Metal Sections, the conversation quickly turns to tolerances, traceability, and the paperwork trail that makes sign-off straightforward. The compliance angle isn’t abstract either. UKCA marking is used for goods being placed on the market in Great Britain, and it demonstrates compliance with the appropriate designated standard for a product; for fabricated structural steelwork specifically, the designated standard is BS EN 1090-1, and fabricated structural steelwork delivered to a site in GB must be UKCA marked (or CE marked only up to 30 June 2025) against BS EN 1090-1. So, instead of treating “precision” as a nice extra, it’s more useful to see it as a practical risk-control habit that helps projects run smoothly. Let’s look at five industries that rely on manufactured steel, and what precision really changes for safety, performance, and build quality. Construction & structural engineering In mainstream building work, manufactured steel is everywhere you’d expect: primary frames, beams and columns, connection plates, stairs, and all the secondary pieces that make a structure buildable in real life. What’s easy to forget is how many other decisions get anchored to that steel geometry. Set-out lines, floor zones, façade interfaces, service penetrations, fire protection thicknesses, handrail runs. When the steel arrives accurately made, you don’t just get a faster steel erection. You get fewer micro-delays rippling through the rest of the build. This is one reason steel keeps such a strong position in UK structural framing. BCSA reported that steel took the greatest market share at 48.6% in 2023 compared with other framing materials. That’s a market signal that a lot of teams still value the speed and certainty that good steelwork can bring. Precision is how you protect that certainty. Not in a perfectionist way, but in a practical one: holes line up, cleats don’t need “encouragement”, and tolerances don’t get spent on site trying to correct something that should’ve been right before it arrived. And there’s a quiet confidence boost that comes with it. When the steel package is consistent and well evidenced, design teams and site teams can spend their time on coordination and quality, rather than detective work. Infrastructure & civil engineering Infrastructure and civil engineering projects tend to have one thing in common: interfaces. Lots of them. Bridges, gantries, stations, platforms, and access structures often connect to existing assets, third-party land, live highways, or rail environments. That leaves less room for improvisation, and it makes precise manufactured steel feel less like “nice workmanship” and more like a planning tool. In these settings, precision supports safety in a very grounded way. If parts fit first time, people spend less time doing awkward work at height, less time around temporary arrangements, and less time trying to resolve clashing details while the clock is ticking. It also supports performance, because infrastructure often lives with cyclic loading, weather exposure, and long inspection intervals where durability details matter. There’s also a broader supply reality behind the scenes. The UK government’s steel strategy consultation notes that the UK currently has a demand for steel of around 9 to 11 million tonnes a year. That’s a lot of material moving through many hands, which means the winners tend to be the supply chains that are organised, traceable, and consistent. A useful mindset for civil teams is to treat precision like good traffic management. It doesn’t make the project “fancy”. It makes it calmer. And calmer tends to be safer. Industrial & commercial buildings Industrial and commercial buildings are where steel’s repeatability really gets tested. Big footprints, regular grids, long spans, and plenty of follow-on systems that want everything to be straight and true: cladding rails, dock levellers, mezzanines, sprinkler mains, lighting, racking, and signage. When steel is accurately fabricated, that repetition becomes a genuine advantage because every bay behaves like the last. BCSA’s 2024 annual review put a number on how much steelwork runs through the UK economy and where it’s going. It stated that consumption of constructional steelwork remained at 893,000 tonnes in 2023, and it also noted industrial buildings increased by 2.2% to 450,000 tonnes in 2023. For anyone working around logistics, distribution, retail parks, or large commercial shells, those figures will feel familiar. Where precision matters most here is build quality at speed. Industrial projects often have hard operational dates, tenant fit-outs waiting in the wings, and strict rules about watertightness and floor performance. A steel frame that arrives cleanly made helps the project hit the point where it can be closed in, serviced, and finished without endless snag loops. Here’s the thought-provoking question that’s worth asking early, before the first fabrication drawings are even signed off: if the whole building typology is based on repetition, why accept site fixes that break the repeatability you’re paying for? Automotive & manufacturing facilities Manufacturing sites don’t just “contain” processes. They support them. In automotive and broader manufacturing facilities, steel shows up as the building frame, of course, but also in the steelwork that makes the place usable: equipment bases, access platforms, edge protection, service gantries, and structural supports around plant. It’s the kind of steel that has to live alongside motion, vibration, heavy loads, and frequent operational changes. That’s why precision lands differently in this sector. In

The Construction and Engineering team at Burges Salmon has advised independent construction company Benniman Limited on a series of significant projects across the UK. Led by director Christian Mulvihill, the firm provided legal support on large-scale developments for leading names in the logistics and industrial sectors. Notably, Burges Salmon advised Benniman on the creation of three new logistics and distribution facilities at Daventry International Rail Freight Terminal (DIRFT) in Northamptonshire. Totalling 618,000 sq ft, the schemes will deliver high-quality space and strengthen DIRFT’s position as a key hub for rail-connected logistics, supporting efficient supply chain operations and sustainable freight solutions. Further advice was provided across three other projects including on the construction of a c. 50,000 sq ft best-in-class industrial and warehousing estate in Reading, the development of eight industrial units in Milton Keynes totalling 200,765 sq ft., as well as recent work delivered for property developer Clowes Developments. The team also advised Benniman in relation to the construction of three industrial units in Birmingham on behalf of Coltham as well as a 57,000 sf ft unit in Worcester Six Business Park for Stoford. Christian Mulvihill, director at Burges Salmon, says: “We are delighted to have supported Benniman on these projects, which demonstrate the strength of the UK logistics and industrial sectors. Completing five transactions back-to-back within a short timeframe required careful co-ordination and a thorough understanding of contractual and regulatory issues. It is a testament to the strength and agility of our team that we were able to deliver seamless advice across multiple projects simultaneously, ensuring our client could move forward with confidence and efficiency.” Paul Barfoot, Commercial Director at Benniman, comments: “Delivering major projects concurrently was a significant undertaking, and Burges Salmon’s ability to manage the legal complexities was outstanding. Their proactive approach, responsiveness and sector expertise gave us the confidence to progress each development without delay.” With over 40 specialist lawyers working across the firm’s Built Environment, Infrastructure and Energy & Utilities sector groups, Burges Salmon has one of the largest construction and engineering legal teams in the UK and is a first port of call for highly complex and innovative projects. Building, Design & Construction Magazine | The Choice of Industry Professionals