Happy New Year! UK construction performance finishes 2025 on a high 2025 concluded with a significant increase in project starts during the Index period This week, Glenigan | A Hubexo Product, one of the construction industry’s leading insight experts, releases the January 2026 edition of its Construction Index. The Index reviews the three months to the end of December 2025, focusing on underlying projects with a total value of £100 million or less (unless otherwise stated). All figures are seasonally adjusted. It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the last 12 months. The January Construction Index reveals that overall construction performance is starting to improve following a sluggish end to Q.2 2025, and a distinctly depressed Q.3 2025. In fact, projects starting on site rose by 7% in the three months to December, indicating that the sector is starting 2026 on a surer footing than that of the preceding quarter. Despite start activity remaining 7% lower than 2024 figures, the outlook for the coming year is far from gloomy and, with significant Government funding in areas including housebuilding, amenities, critical infrastructure, and capital projects there’s hope that this cash injection into the public realm will act as a catalyst to thaw currently frosty private investors both home and abroad. According to the Index, this current and potential growth is being seen across a variety of different verticals and, whilst residential categories posted losses, non-residential counterparts (including civils) posted strong results during Q.4 and against the preceding year. Commenting on the results, Glenigan’s Economics Director, Allan Wilen, says, “Contractors and subcontractors across the UK will be breathing a sigh of relief that, contrary to expectation and speculation, the sector finished up 2025 on a positive note, buoyed by significant Q.4 growth across non-residential verticals, particularly office and industrial where work has skyrocketed providing much needed momentum.” He continues, “Looking at the year ahead, whilst it won’t be a cake walk by any means, hopefully this non-residential activity boost will provide the basis for a further strengthening, reflecting the 2026 return-to-growth predictions we made in our recent Construction Forecast. However, this only addresses half the story. In the short term, the toughest nut to crack will be the persistent private residential market stagnation. Languishing in the doldrums, it desperately awaits a return of house-purchaser confidence and faster BSR clearance of high-rise projects; something the Government will no doubt chew over intensely over the first half of the year to find a way of easing the deadlock.” Taking a closer look at the results… Sector Analysis – Residential The Residential sector was a mixed bag, registering a modest 2% decline in the preceding three months, down by a fifth (-20%) against 2024 figures. Drilling deeper, private sector activity maintained a downward trajectory, posting 15% drops during Q.4, plummeting 29% compared to the previous year. Social housing, however, fared somewhat better, with 28% rises during the Index period to finish 16% up on last year. Sector Analysis – Non-Residential It was a different story in the non-residential sector, which experienced a robust period of growth, with most verticals scoring an increase during Q.4 Once again, the sun continued to shine on office construction, which rose by 11% against the preceding three months and 53% above 2024 levels. These impressive results can be largely attributed to the commencement of some sizeable projects, including the £70 million Dirac Building on the new St John’s Innovation Park development in Cambridge, and various other schemes. Not to be outdone, Industrial project starts were similarly on the up, soaring to 41% during the Index period and by 57% against the previous year. The commencement of various schemes up and down the UK helped to support sector growth. Once again, community and amenity projects saw an increase, with project starts on site up by 37% on 2024 figures and by 29% compared to the preceding three months. Perhaps boosted by good vibrations from the UK Government, civils work starting on-site increased 17% during Q.4 and by 15% against the previous year. Infrastructure project starts jumped 8% and utilities 28% during the index period to finish 9% and 23% up on last year, respectively. Elsewhere, performance was inconsistent or in decline. Whilst retail increased by 9% against the preceding three months, it stood 15% lower than the previous year’s figures. Likewise, education projects witnessed a 13% spike during the index period, but finished 8% down compared to 2024. Health and Hotel & Leisure’s results were disappointing. The former saw performance slashed by a quarter (-25%) against the previous year, dipping 7% during Q.4. Similarly, the latter dropped 8% during the preceding three months, finishing 28% lower than 2024 figures. Regional Outlook The Capital was the standout performer, rising to 35% against the preceding three months to stand 33% up against the previous year. Keeping up the pace, the North East also performed well, rising 10% against the preceding three months to stand 34% up against the previous year. It was a similar story in Yorkshire & the Humber, where project starts rose by 16% against the preceding three months to stand 1% up on the previous year. Elsewhere, performance was either patchy or dismal. The South West experienced a mixed performance, rising to 20% against the preceding three months, yet finishing 6% down against the previous year. The West Midlands experienced an especially poor period, declining by 19% against the preceding three months and declining to 12% against the previous year. The South East also struggled, declining 7% against the preceding three months to stand 14% down against the previous year. Find out more about Glenigan here: www.glenigan.com Building, Design & Construction Magazine | The Choice of Industry Professionals

Whether you’re a new business owner, have invested in a rental property, started a side hustle or sold assets between 6 April 2024 and 5 April 2025 chances are you’ll have to pay tax on your earnings and that means Self Assessment. The 31 January 2026 deadline for filing your Self Assessment and paying the tax you owe is fast approaching, so Jashoda Pindoria from HM Revenue and Customs (HMRC) helps explain what Self Assessment is and what you may need to do. What is Self Assessment?                                                                       Self Assessment is how the self-employed and sole traders pay tax on their income. People are usually taxed automatically through their pay from their employer, but if you’re self-employed as a contractor or freelancer or if you haven’t been automatically taxed, for instance you rent out a property, you may need to declare your income by completing a tax return and then pay any tax owed. The current Self Assessment reporting period is for 6 April 2024 to 5 April 2025. I think I might need to do a tax return this year. How do I check? If you’re new to Self Assessment and not sure where to start, you can use the ‘check if you need to send a tax return’ tool on GOV.UK. You simply answer a few straightforward questions and the tool helps you decide if you need to complete a tax return. How do I get started? If you are new to Self Assessment for the 2024 to 2025 tax year,  you’ll first need to register for Self Assessment. You can watch our helpful YouTube videos which take you through the online registration process every step of the way. Once you have registered, HMRC will send you your Unique Taxpayer Reference (UTR) – a 10 digit reference number that is used to identify your Self Assessment tax record. Your UTR is also stored in the HMRC app or your online account.  You can complete your tax return online via GOV.UK. When you’re ready to start your tax return you’ll need your UTR and National Insurance number, as well as details of your income, earnings, savings interest and other financial records. It seems daunting to me, where can I go for help? HMRC wants to help you get your tax right so there’s a lot of helpful guidance on GOV.UK to advise you how to complete your tax return including:  There’s also specific guidance for the various reasons you could be completing a tax return, for example if you’re filling out a Self Assessment because of your side-hustle earnings and regularly sell goods or provide services through an online marketplace, then have a look at HMRC’s information sheet on selling online and paying taxes. When is the deadline? The deadline for submitting your Self Assessment return online and paying your tax for the 2024 to 2025 tax year is 31 January 2026. If you miss the deadline, you could incur penalties.  If you have paid too much tax, we’ll let you know and repay you once we’ve processed your Self Assessment return. You can also check if you’re due a refund in the HMRC app once you’ve filed your return. What information do you need to include on your return? You’ll need to include all your taxable income on your tax return so you can pay any tax owed. So that’s any income you have already paid tax on (for example, if you’re employed and paid Income Tax and National Insurance through PAYE) as well as any expenses so we can accurately calculate if any tax is due. You’ll also need to include information on any contributions you’ve made to charity or pensions that may be eligible for tax relief. Make sure you keep records such as bank statements, invoices, contracts and receipts for your income and outgoings. Can I ask someone else to fill my Self Assessment in for me? Yes, you can authorise an agent to manage your tax affairs (such as an accountant or tax adviser) or ask a friend or relative or give someone power of attorney to act on your behalf. More information on this can be found here Appoint someone to deal with HMRC on your behalf. But it’s worth remembering it remains your responsibility to ensure the return is accurate and submitted on time. Please do not share your HMRC login details with anyone, including your tax agent. How do I pay? The deadline to pay any Self Assessment tax owed is 31 January 2026 and the quickest and easiest way to pay is through the HMRC app. If you think you may struggle to pay your tax bill, please get in touch with us to let us know. There are a range of payment options, that could be available to you including a Budget Payment Plan where any payments you make will be used to pay your next tax bill. You may be able to set up a payment plan yourself. The plan, known as a ‘Time to Pay’, means eligible customers can arrange to pay their tax bill in regular instalments over an agreed period. Will I need to do Self Assessment next year? If you continue to meet the Self Assessment criteria in the ‘check if you need to send a tax return’ tool on GOV.UK you need to continue to file a Self Assessment tax return. If your circumstances change and you no longer believe you need to complete a tax return, then you must tell HMRC as soon as the change happens. You can find out how to stop your Self Assessment through our online videos. Don’t ignore an HMRC letter remining you to complete a tax return, even if you think you haven’t got anything to pay. Get in touch with us if you don’t think you should complete one as you could receive a penalty if we’re expecting a return and don’t receive one.   I’m self-employed and do Self Assessment, so is there anything

Darlington has secured £16 million from the Government’s Growth Mission Fund, announced in the Budget, completing the investment package needed to deliver a new Science, Technology, Engineering and Maths (STEM) learning centre at the town’s science park. The Pride in Place programme is also contributing to the project to create routes into quality local employment. The independent Neighbourhood Board overseeing Pride in Place has agreed to focus funding on Skerne Park, Red Hall, Bank Top, Northgate and Branksome, tackling long-standing inequalities through improvements to community facilities. Local residents will be encouraged to help decide priorities and take part in managing any new provision. The five areas were selected following an analysis of greatest need. “This project will be a game-changer for Darlington. It will help us deliver real improvements in our communities, supporting the priorities in our Council Plan and ensuring these neighbourhoods are great places to live, work and thrive. I look forward to sharing more details about Pride in Place as it develops,” said Cllr Stephen Harker, Leader of Darlington Borough Council. David Gartland, CEO and Principal of Darlington College and chair of the Neighbourhood Board, said: “We’ve made an incredibly good start. The Board’s commitment to the STEM Centre has leveraged additional funding three times its original contribution, which would not have been possible without that investment.” He added: “The commitment that the Board made to the STEM Centre has attracted additional funding three times the amount of our contribution which simply wouldn’t have happened without our funding. This and the work we are doing in communities will leave a fantastic lasting benefit to Darlington.” Building, Design & Construction Magazine | The Choice of Industry Professionals

Projects starting on-site show slight increase on back of office and industrial upticks Today, Glenigan | Powered by Hubexo, one of the construction industry’s leading insight experts, releases the December 2025 edition of its Construction Index. The Index reviews the three months to the end of November 2025, focusing on underlying projects with a total value of £100 million or less (unless otherwise stated). All figures are seasonally adjusted. It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the last 12 months. The December Construction Index indicates that whilst the sector is by no means out of the woods yet, there’s fresh hope for recovery with a modest 3% project-start increase registered in the three months to November. However, a sudden burst of activity, largely supported by spikes in office and industrial starts was not enough to prevent performance dipping 4% below 2024 levels. This shows that whilst the signs are encouraging, there’s plenty of lost ground to be made up after a tawdry year punctuated with dramatic episodes of policy confusion and ongoing economic turbulence. Many will be hoping that the eventual clarity delivered in last month’s Budget will solidify the Government’s intent, outlined initially during the Spring/Summer Spending Review, crystallising into a flurry of renewed activity across most, if not all, verticals. According to Glenigan’s Economics Director, Allan Wilen, “Whilst performance was generally weak in most areas of the construction industry, the decline was less severe than we’ve seen in other months, with three standout verticals: offices, industrial, and social housing pushing the overall sector back into positive figures during the Index period. Yes, these levels are lower than last year, but given the backdrop of volatile global markets, wild political speculation and policy false starts, the situation could’ve been a lot worse. He continues, “The Chancellor’s recent statement will have gone some way to reassuring contractors and subcontractors that the Government remains committed to the various capital projects and upgrades it promised earlier in the year. There will be industry-wide fingers-crossed that this materialises into concrete funding so shovels can be committed to the ground in earnest. All this going to plan will bear out the predictions we made last month in our Autumn Forecast, which indicates growth returning to UK construction in 2026 and 2027.” Taking a closer look at the results… Sector Analysis – Residential The Residential sector was a mixed bag, with plummeting activity in the private sector, offset by an impressive growth-spurt in social housing activity. Overall performance declined by 6% compared to the preceding three months and by 18% compared to 2024 figures, dragged down by private housing construction, dropping by 16% during the Index period and by 26% against the previous year. As above, Social Housing cushioned the comparative fall, rising 28% compared to the preceding three months to finish 11% up on the previous year. Sector Analysis – Non-Residential Similar to recent Indexes, office starts were the standout performer, experiencing yet another relatively strong period, rising by 56% compared to the preceding three months and 147% above the previous year. Much of this upsurge can be attributed to the commencement of major projects including the £85.9 million One Hanover Street office development for The Crown Estate in Mayfair, London, as well as various other smaller schemes. Likewise, the industrial sector also performed well, rising by a third (+33%) compared to the preceding three months, finishing almost two-thirds higher (+60%) than the previous year. Community and amenity project starts increased by 8% compared to the preceding three months, but posted a modest decline of 2% against the previous year.  Civils work starting on-site increased by 4% against the preceding three months but declined by 1% against the previous year. Infrastructure work starting on-site increased 12% compared to the preceding three months and increased by 3% on the previous year. These positive figures were tempered by a dip in utilities activity where starts declined by 5% against the preceding three months and the previous year. Elsewhere, activity stagnation and decline were consistent. Hotel & Leisure fared worst, recording a 28% drop compared to the preceding three months, and 39% down against the previous year. The Health sector remained flat against the preceding three months, standing 24% lower than the previous year. Retail also declined 11% against the preceding three months, standing 22% lower than 2024 levels and Education experienced a poor period too, falling 4% against the preceding three months and declining 13% against the previous year. Regional Outlook Starts soared across the capital, experiencing the strongest performance of any region, rocketing by 77% compared to the preceding three months to stand 56% up against the previous year. The South West also performed well, rising by 15% against the preceding three months to stand 8% up on 2024 levels. The North East experienced a mixed performance, declining a mere 2% against the preceding three months but finishing an impressive 72% up against the previous year. Conversely, the West Midlands experienced a poor period, declining 13% against the preceding three months and falling 9% compared to last year. The South East performed poorly, posting an 11% decline against the preceding three months to stand 19% down against the previous year. The North West fared even worse, declining 17% against the preceding three months, resulting in a 24% drop against the previous year. Find out more about Glenigan here: www.glenigan.com Building, Design & Construction Magazine | The Choice of Industry Professionals

VIVID, one of the UK’s leading housing associations, has announced it has secured £100 million in funding from NatWest as part of the bank’s £500 million social loan fund, designed to accelerate the delivery of homes for social rent across the country. VIVID is the first to draw down funds from this. This first-of-its-kind initiative by NatWest aims to tackle the UK’s housing crisis by providing ringfenced lending exclusively for the construction of social rent homes. The facility offers discounted interest margins and no arrangement fees, enabling housing associations to save millions in finance costs and reinvest those savings into building and improving homes for those who need them most. With over 1.3 million households currently on social housing waiting lists and living without the security of a stable home, this funding represents a significant step toward addressing the urgent need for affordable housing. This funding will make a real difference – helping to ease the shortage of social homes, support vibrant local communities, and give VIVID the flexibility to keep building where it matters most. It will go towards building an additional 450 new social rent homes for more customers and comes with a 10-year loan term, providing stability for long-term investment. Social rents are significantly lower than private rents, making them far more affordable for our customers. In our operating areas, they’re typically 50–60% cheaper than an equivalent private rental. This means we can provide a secure home for around 970 people currently on Local Authority housing lists.  David Ball, Chief Financial Officer at VIVID, said: “NatWest’s new social rent linked loan product gives housing associations the financial flexibility to build more homes at social rent levels. The overall rate discount being offered is an innovative step change that shows NatWest’s commitment to supporting the Government’s Social Rent led agenda.” Paul Eyre, NatWest Group Head of Residential and Housing Finance, said: “This agreement has been made possible through NatWest’s dedicated social loan fund which has been ringfenced entirely for the building of social rent housing across the UK. It’s part of our ambition to lend £7.5 billion to the social housing sector before the end of 2026.  It’s the latest loan agreement between NatWest and VIVID following a separate £125million investment earlier this year, and we’re delighted to continue supporting them in their goals of addressing a housing shortage in the South of England by building almost 900 affordable and sustainable homes, making a big difference for the communities they serve.”  Forhad Ahmed, Senior Associate, Real Estate Finance Security at Trowers & Hamlins LLP, said: “We are delighted to have advised VIVID on securing £100 million from NatWest as part of their landmark £500 million social loan facility. This first-of-its-kind initiative demonstrates innovative financing in the social housing sector and will enable VIVID to deliver much-needed affordable homes across the country.” Anna Clark, Legal Director for Bevan Brittan LLP, said: ““We are so pleased to have once again supported VIVID in completing another landmark loan facility to further assist with the delivery of much needed social housing. “ The £500 million fund forms part of NatWest’s wider £7.5 billion lending ambition to the social housing sector by the end of 2026, reinforcing its commitment to supporting sustainable housing solutions. Building, Design & Construction Magazine | The Choice of Industry Professionals

By Mark Hall-Digweed, Partner, Carter Jonas (Infrastructure) Introduction Yesterday’s Budget was billed as a defining moment for economic growth. On first impressions, it appears to have been a constructive day for infrastructure. There were ample mentions of infrastructure in the Budget Report – no fewer than 76 uses of the word ‘infrastructure’ in fact. Much of it was retrospective but there were several positives too. Heathrow runwayTuesday’s pre-Budget support for the extended Heathrow runway was perhaps the most significant announcement from my point of view. But while aviation capacity matters, so too do the fundamentals that affect every household, along with the need for every household to be serviced by transport and utilities. Electricity networks in many areas are already at their limits, and developers are struggling to secure timely connections for new communities. Sewerage systems are under strain too, and strategic water infrastructure has not kept pace with population growth. The same applies to the national energy system. Significant upgrades are needed to the transfer of power across the country. While the Great Grid upgrade starts to address the challenge of moving wind generated power from offshore, and moving coastal nuclear power inland, local distribution will require concurrent activity by DNOs.  Many renewable energy systems suit localised consumption, but storage technology is the conundrum that the government has the key to unlock.  Yesterday’s R&D budget could play an important role in driving innovation in this area. Setting out support for Heathrow ahead of addressing these essentials feels like an unusual sequencing choice. Small Modular Reactors (SMRs)The government has published an updated Green Financing Framework, adding nuclear energy to the list of eligible expenditures for green financing (with some exclusions). This goes some way to support the role of nuclear energy as a green energy superpower and is welcome, as is the decision to place the next generation of nuclear technology at Rolls-Royce in Derby. Continued funding for SMR development is welcome. Nuclear is central to a resilient energy mix. But until there is a commitment to the strategic grid upgrades required to move power from a likely SMR site on the coast to homes and businesses across the country, the impact will remain limited. New towns We had hoped for more commitment to the funding of new towns in this Budget. New towns need a commitment to infrastructure from day one, and this appeared to be an omission. Overall, the New Towns Taskforce estimates that its recommended locations could contribute at least 300,000 new homes in the coming years, but they will not be delivered successfully without the utilities, transport links or energy capacity needed to support them. Landfill Tax The Budget states that the government will not converge the two rates of Landfill Tax, as consulted on earlier this year, recognising that the proposed changes imposed costs on businesses and could potentially undermine the government’s housing targets. Instead, the government has committed to preventing the gap between the two rates of Landfill Tax from getting any wider over the coming years and will retain the tax exemption for backfilling quarries to ensure that housebuilders and the construction sector continue to have access to a low-cost alternative to landfill. This is good news for both new towns and development more generally, as if the current landfill tax is expanded to include soil removed from sites, the cost of delivery of everything from a pipeline to a housing estate will rise significantly. Depoliticising infrastructure This government staked much of its early political capital on making the case that simplifying infrastructure delivery and attracting investment into schemes would underpin economic growth. Infrastructure remains one of the strongest levers available to drive that growth, as the Chancellor appeared to agree in her introduction to the Budget. But there is a risk that the political capital spent so far has not been enough. Developers and investors alike want the government to go further and faster, particularly in planning reform and strategic delivery. The devolution of £13bn in flexible funding for seven mayors across England is a step in the right direction, but more will be needed to unlock delivery at scale. Using the Budget to reinforce that ambition could have been the moment that puts major projects on the faster track they need but unfortunately this hasn’t been realised. Conclusion Although politics and infrastructure operate across different timeframes, yesterday’s Budget included positives for energy, transport and utilities. In this respect, the Chancellor has reaffirmed her commitment to growth through the built environment, and our sector should feel more confident in its ability to respond. Building, Design & Construction Magazine | The Choice of Industry Professionals

Construction intelligence specialists predict renewed activity following false-start over the summer. Today, Glenigan | powered by Hubexo, one of the construction industry’s leading insight and intelligence experts, releases its widely anticipated UK Construction Industry Autumn Forecast 2026-2027. Predominantly focused on underlying starts (<£100m in value), unless otherwise stated, it contains a comprehensive overview of the future of the construction industry. The key takeaway from the Autumn Forecast, which focuses on the two years 2026-2027, is that, despite the aggressive geopolitical and socioeconomic headwinds which have picked up during Q.3 and Q.4 this year, the sector is still on course for recovery in 2026 and 2027. A Show of Strength Growth has been re-forecast. Following a period of international turbulence and domestic uncertainty, 2025 and 2026 figures have been revised down, with the former now in negative numbers (-6%) and the latter adjusted down a couple of percent since the spring (+8%). However, these relatively disappointing results are offset by predictions for 2027, where Glenigan’s Economic Unit foresee a 13% activity boost. Whilst the industry will be frustrated that a reversal of fortune will not come as quickly as thought back in May/June 2025, there will be a collective sigh of relief that the negative impact of international conflict, trade wars and policy speculation has not done more damage. Overall, the UK construction sector has done well to weather what has become a persistent storm, punctuated by aggressive peaks and troughs in activity, and is positioning itself to kickstart activity following next week’s Budget. Positive signals are making themselves heard within a variety of different quarters, with certain ‘verticals to watch’ emerging from amongst the present gloom. An atmosphere of anticipation The Glenigan Economics Unit foresees a rise in both private and public sector starts, with residential construction returning to positive figures after a blip over the summer and autumn of 2025. Likewise, the golden period experienced within the commercial office space over Q.3 and Q.4 is likely to continue into next year as more refurbishment work comes online. Equally, as consumer confidence (hopefully) resurges following the Chancellor’s upcoming Budget, we’ll see an uptick in discretionary spending, catalysing a boost for industrial projects as online shopping increases and more logistics and warehouse facilities are required. Hotel & leisure will also likely benefit as improved confidence and a rise in disposable income boosts consumers’ discretionary spending. In the public space, the Government will be hoping to kickstart a number of capital projects, especially around renewables, as well as deliver on its social housing commitments and promised increases in funding for health and education. More broadly, a renewed commitment to delivering Net Zero across state-owned assets by 2050 will present ample opportunity for contractors and subcontractors to seize on. Accordingly, Glenigan’s Economic Director, Allan Wilen says, “As with any Forecasts, it’s difficult to foresee unpredicted and spontaneous political and economic issues until they suddenly land, often completely changing the situation. The ‘will they/won’t they’ attitude that the professional and consumer landscape has taken towards trailed Government policy has done nothing to inspire confidence in the latter part of 2025. This is borne out by the dramatic performance decreases we’ve seen across our own Indexes since the summer, dashing any hopes of recovery by the end of this year. “However, the Chancellor has a real opportunity within this Budget to rebalance the situation and ensure that a kick-start into 2026 is not the false start we witnessed in the Spring of this year. There are some very encouraging signs already across different verticals and it will be up to the industry to take advantage of them and, in some cases, that might mean diversifying to meet more niche demands around low-carbon construction and commercial fit-out or even different building approaches and services; for example, addressing the changing needs of an ageing population. So, whilst we’re experiencing short-term struggles, we’re still confident of a brighter long-term picture.” **** Taking a more detailed look at the Forecast… Private Residential: Housing Market Holds Firm Following a very positive outlook predicted in June, figures have been reassessed, following a softening in market confidence and a drop in property transactions during Q.2/Q.3 2025. The initial rise in private housing starts during the first four months of 2025 proved short-lived. Following April’s stamp duty increase, starts fell back during the second half of the year. Apartment projects were especially weak as slow building safety regulator (BSR) approval delayed project starts. However, despite these setbacks, housing market activity has been broadly stable during the second half of the year. This has been supported by rising household incomes, with the number of mortgage approvals for house purchases close to their pre-pandemic average. The outlook remains positive. Stronger economic growth is expected to lift housing market activity over the next two years. Rising real incomes and further interest rate cuts are expected to lift house-buyers’ confidence from 2026. Furthermore, supply-side restraints are also expected to ease as the BSR reduces the backlog of projects awaiting approval, and planning reforms are expected to help release additional sites for development, supporting sector growth during the latter stages of the forecast. Private Non-Residential Verticals: A wealth of opportunity awaits Renewed growth is anticipated in 2026 and 2027, despite many verticals slipping back during 2025. Whilst the industrial sector suffered from a drop in manufacturing projects, this was offset by a spurt in warehousing starts. This growth neatly anticipates higher consumer spending and sustainable increases for this type of project. This, in turn, will likely see further demand for logistics and light industrial space from online retailers and third-party carriers. However, bricks and mortar retail will be slower to recover as operators face increased cost pressures from NI increases and the rise in the minimum wage. An overhang of empty retail premises is also deterring investment in new premises. Although, in the spirit of adapting to survive, this situation may also prompt landlords to refresh and repurpose existing excess retail space. As ever, supermarkets remain a

Latest loan brings combined total financing commitments to £1.1 billion Eldridge Real Estate Credit, the real estate investing strategy of Eldridge Capital Management, and Vita Group, a leading UK and European developer and operator of premium student and residential co-living brands, today announced the continued expansion of their long-standing partnership. This marks their tenth transaction, with a combined total of £1.1 billion in financing commitments. Since 2020, Eldridge and Vita Group have partnered on ten developments across purpose-built student accommodation (“PBSA”) and co-living, delivering more than 7,500 beds across the UK and Spain. The partnership has helped scale Vita’s investment-grade living platform, which unites development, operations, and brand to deliver high-quality, service-led assets across Europe’s key cities. Each brand within the Group responds to a different stage of modern urban life, together meeting the growing demand for high-quality, experience-driven living. Eldridge Real Estate Credit focuses on investing in opportunities throughout the US, UK, and Europe, including term, construction, transitional, and special situation opportunities across the capital structure. The platform has originated over $10 billion in loans, leveraging an experienced team with a disciplined approach seeking to create long-term value. “Over the past five years, our partnership with Vita has been a testament to our shared vision and commitment to long-term success,” said Graham Keable, Managing Director at Eldridge Capital Management. “This tenth transaction together not only underscores Vita’s proven expertise in the space, but also reinforces our confidence in the continued growth and resilience of the UK and European living sector.” “The developments we’ve delivered together have consistently outperformed benchmarks, validating the strength of our model across student and co-living assets,” said Max Bielby, Chief Operating Officer at Vita Group Our relationship is a powerful example of how long-term financing partnerships, combined with our integrated approach to design, development, and operation, address a clear market need and deliver sustainable value.” Backed by ongoing undersupply and continued strong international student demand, Eldridge and Vita have delivered high-quality PBSA assets in a high-growth market. The teams believe their partnership demonstrates best-in-class execution, combining stable returns and robust downside protection underpinned by resilient credit structuring. The latest transaction is a £146.1 million senior development loan for Vita Student First Street, an 861-bed PBSA scheme in Manchester’s First Street regeneration area. Construction is already underway following Building Safety Act approval, with completion targeted for June 2028 ahead of the 2028/29 academic year. The 170,000 sq ft development expands Vita Student’s presence in Manchester, where its existing developments maintain occupancy rates of 95 to 99 percent. “We are delighted to complete this plot sale to Vita which will continue the delivery of the First Street masterplan at this strategic gateway into the city,” said John Hughes, Managing Director at Ask Real Estate, the landowner and developer of the First Street Estate. Now one of Manchester’s most vibrant neighbourhoods, this latest Vita development will further add to the exciting mix of businesses and residents already located at First Street, all of which are supported by a rich blend of amenities and facilities.” Building, Design & Construction Magazine | The Choice of Industry Professionals

Kier has begun its new financial year on a strong footing, with trading in line with expectations and its order book rising by £600m to £11.6bn. New chief executive Stuart Togwell (pictured), who formally stepped into the role this month, said he was starting his tenure with 94% of this year’s revenue already secured – a position he described as among the strongest in the sector. Togwell said he was excited to steer the business into its next phase of growth after what he called a robust start to FY26. The increased workload follows a series of major contract wins. These include Norfolk County Council’s highways and infrastructure deal, worth up to £700m over as long as 14 years, seven lots on the Crown Commercial Service’s Transport Technology Framework, and a £205m reservoir improvement contract for United Utilities under AMP8. In its construction division, Kier has secured four education schemes with a combined value of about £190m, along with £116m of new prison expansion work at HMP Lancaster Farms through the Ministry of Justice’s Small Secure Houseblocks Alliance. The property business is also active, having obtained planning permission for a 452,000 sq ft logistics development in Andover and begun work on the pre-let Riverwell Town Square project in Watford, where tenants include Travelodge, Tesco and Greggs. Kier has further bolstered its financial position with a new £190m revolving credit facility running to 2030, which it said reflects lenders’ confidence in the group’s long-term outlook. The company added that strong cash generation remains on track and that, as in previous years, its performance is expected to be weighted towards the second half. Building, Design & Construction Magazine | The Choice of Industry Professionals