Glenigan’s Summer 2026 Construction Forecast indicates sector resurgence in 2027, despite a painful start to the year Today, Glenigan | A Hubexo Product, one of the construction industry’s leading insight and intelligence experts, releases its widely anticipated UK Construction Industry Forecast 2026-2028. Predominantly focused on underlying starts (<£100m in value), unless otherwise stated, it contains a comprehensive overview of the current state of the construction industry. Glenigan’s Summer 2026 Forecast is published against the backdrop of an extraordinary series of domestic and international events, which have shaken global markets to their foundations and rocked the entire UK business and industry landscape. Construction was already one of the hardest hit sectors. Yet when Glenigan released its last Forecast in the back end of 2025, it had been looking forward to a relatively stable 12 months with modest recovery. Still, no one could have predicted what would happen over the past six months and, with little sign of these phenomena resolving any time soon, figures have had to be revised. However, the good news is the impact is expected to be short-lived. Glenigan’s latest numbers predict that, whilst the year will end in negative growth of -1%, this will be offset by an 11% activity increase in 2027, and 4% in 2028 (+13% on 2025). This is dependent upon a gradual re-strengthening of the UK economy which, although fragile, appears to be withstanding considerable external pressures. Considering the Forecast’s findings, Glenigan’s Economics Director, Allan Wilen, says, “It’s been a turbulent few months for the UK construction sector, with investors and developers reassessing and rescheduling planned projects. However, the economic outlook is expected to improve once the current fog of war dissipates, supporting a strengthening in construction activity from 2027 with an uplift across almost all private and public sector verticals. He continues, “As our Forecast shows, there are some particularly exciting growth areas as Government funding is released and investor appetite starts to return to the market. Contractors will need to be quick off the mark as more favourable conditions are finally felt. There will be no time for hanging around and the quicker the sector’s reaction, the sooner momentum will return and stick.” Looking at the highlights from the Forecast, despite the here and now remaining tough, key drivers for growth over the next two years include increased consumer spending and higher public sector investment, as well as an expansion in infrastructure and utilities work. Gearing-up for renewed growth In the private sector, financial viability and economic uncertainty are still key constraints to project progress near term. However, there are likely to be some big winners in the non-residential verticals over the next few years. Industrial and commercial office projects are set to significantly boost private sector activity, with strengthening project starts as UK economic growth gathers pace, supported by increased business investment. Although, the former will see a 9% downturn this year, improving market conditions and firm demand for logistics space, backed by the Government’s National Planning Policy and Infrastructure Strategy, will help deliver increases of 16% in 2027 and 5% in 2028. Offices have been one of the outliers amid a particularly gloomy first half of the year; this upward trajectory is set to rise further, resulting in an impressive 21% lift by the end of 2026. It’s expected to then slow in 2027 after two years of rapid growth, slipping back 11% before returning to growth in 2028 (+4%). The key reason for this impressive resilience is a healthy appetite for high-quality, sustainable office space, as occupiers prioritise energy-efficient and flexible working spaces. Simultaneously, the rapid proliferation of AI is prompting greater demand for data centres (which are covered by this vertical). Prognosis positive for Health and Education Whilst there have been recent delays, non-residential performance is forecast to increase with schemes such as the New Hospital Programme and the School Building Programme set to drive activity over the Forecast period. Education is destined for a season in the sun, climbing 8% by the end of the year and by 20% in 2027, followed by a further 5% rise in 2028. School construction continues to dominate activity, as a clearer funding pipeline unlocks investment to rebuild and renovate a large swathe of tired and crumbling stock.  Health’s diagnosis is also positive, with recovery predicted by the year end (+9%) and by an equal level in 2027 (+9%) before increasing exponentially in 2028 (+14%). Propelled by increased capital funding and the release of deferred schemes, NHS trusts will be able to address the extensive repair backlog across existing estates. Furthermore, additional funding targeted at modernisation and capacity expansions (including diagnostic and community care hubs) will provide a shot in the arm to construction output. Civils is on the Up(grade) Civils is likely to remain flat by the end of the year (0%), no surprise given the significant activity decline in the vertical over the past 18 months. A 15% surge is predicted in 2027 before flattening out in 2028 (0%). Water sector investment programmes are gaining momentum, with Ofwat green-lighting £104bn investment in upgrades and repairs between 2025-2030. Strong growth across electricity networks and renewables are being driven by continued investment to deliver the Government’s Net Zero energy push; offshore wind and nuclear projects, including Hinkley Point C and Sizewell C will underpin activity. Transport infrastructure also gets a look in, strengthening from next year, supported by Spending Review funding for road maintenance and rail upgrades, including HS2 and the TransPennine Route. Residential set to rise-high from 2027 Housebuilding experienced a disappointing start to 2026 after a lacklustre second half of 2025, so it’s little surprise that both the private (-5%) and social (-3%) verticals will finish the year in the red. Whilst the immediate outlook is unavoidably subdued, both are set for a solid revival in the remainder of the Forecast period. Private housebuilding is expected to rebound 13% in 2027 and by 5% in 2028, this is driven by an expected decrease in borrowing costs and improved consumer confidence.

Global professional services company Turner & Townsend has reported another year of strong growth, with revenue reaching £5.76bn in 2025 as the business continues to expand its presence across some of the world’s most significant construction, infrastructure and energy programmes. The company’s latest annual review highlights a period of sustained momentum across its core sectors, supported by growing investment in major projects and a continued focus on talent, technology and long-term client partnerships. Reflecting this growth, Turner & Townsend has increased its global workforce to approximately 22,000 employees, strengthening its ability to support increasingly complex projects around the world. The real estate sector remains a major contributor to the company’s success, with particularly strong performances across urban development, industrial property, life sciences and sports and entertainment venues. Turner & Townsend revealed that it is currently involved in a global portfolio of major real estate projects representing almost £3tn of capital investment. Among its notable appointments are roles supporting the UK’s New Hospital Programme and the development of Barclays’ new headquarters building in New York. The company has also strengthened long-standing relationships with major global organisations through the renewal of portfolio agreements with clients including Google and Shell Real Estate. Infrastructure continued to be another key growth area throughout the year. Turner & Townsend benefited from ongoing public and private sector investment in essential economic and social infrastructure, with aviation, defence and water emerging as particularly strong-performing markets. The business remains involved in several landmark programmes, including Heathrow Airport’s planned expansion, Anglian Water’s long-term capital investment programme and the Clyde 2070 defence initiative in the UK. Internationally, the company has expanded its footprint across the Asia-Pacific region through involvement in major airport developments in Vietnam, Bangalore and Perth, while also securing significant aviation-related commissions in the United States. The energy and natural resources sector also delivered impressive growth across Europe, North America, Asia and the UK. Increasing global demand for energy security, decarbonisation and infrastructure resilience is creating significant opportunities for organisations operating across the sector. One of the company’s most notable achievements during the year was its appointment as a critical partner on Rolls-Royce’s nuclear programme. The project further reinforces Turner & Townsend’s growing expertise within the nuclear industry, where its capabilities now extend across six continents. The company believes its continued success is rooted in its ability to support clients through complex, large-scale programmes that have a lasting impact on communities, economies and industries worldwide. Commenting on the results, Chairman and Chief Executive Officer Vincent Clancy highlighted the importance of both people and client relationships in driving the company’s performance. He said the business’s financial success reflects the quality of its workforce and the trust placed in the company by clients to deliver major projects and programmes that contribute to economic growth and improve lives around the world. Looking ahead, Turner & Townsend remains focused on accelerating its next phase of growth. Central to this strategy is continued investment in people, artificial intelligence and digital technologies, helping the company enhance service delivery and strengthen its competitive position in an increasingly complex global marketplace. With demand for large-scale infrastructure, real estate and energy projects continuing to grow worldwide, Turner & Townsend appears well positioned to build on its strong performance and play a leading role in shaping the built environment for years to come. Building, Design & Construction Magazine | The Choice of Industry Professionals

Plans to deliver Manchester’s most ambitious skyscraper development have received a major boost after a £50m funding package helped secure the future of the landmark Viadux Phase 2 scheme. The Greater Manchester Combined Authority (GMCA) has stepped in with a significant rescue loan to bridge a viability gap that had threatened progress on the £360m development. The funding, approved through the authority’s Good Growth Fund, is expected to unlock construction of both the headline-grabbing Nobu Manchester tower and a dedicated affordable housing block. The intervention follows concerns that the project, despite securing planning approval last year, did not generate sufficient investor returns or developer profit to proceed without additional support. A report submitted to the combined authority highlighted the financial challenges facing the scheme, prompting the decision to provide targeted funding. The loan will specifically support the construction of a 23-storey social rent tower delivering 133 affordable homes. This element sits alongside the wider Viadux Phase 2 development, which is set to transform Manchester’s skyline and further strengthen the city’s reputation as one of the UK’s leading development hotspots. At the heart of the scheme is the proposed 76-storey Nobu Manchester tower. Rising to an impressive 246 metres, the skyscraper is set to become the tallest building in Manchester and the tallest tower anywhere in the UK outside London upon completion. The development will provide 452 private residential apartments alongside a 160-bedroom luxury hotel and restaurant operated by internationally renowned hospitality brand Nobu. The project has attracted significant attention both within the property sector and beyond, with Hollywood actor and Nobu co-founder Robert De Niro among the investors supporting the development. GMCA officials concluded that a subsidised loan represented the most effective and efficient funding structure to ensure delivery of the affordable housing element while simultaneously unlocking the wider regeneration benefits of the project. For developer Salboy, the funding agreement marks an important milestone in bringing the scheme forward. The company welcomed the decision, describing it as a crucial component of its long-term strategy to maximise affordable housing provision within the development while maintaining the viability of the wider project. Beyond its architectural significance, the scheme is expected to deliver a range of economic and social benefits, including new homes, employment opportunities, hospitality investment and further regeneration in the city centre. The inclusion of affordable housing within such a high-profile development also reflects growing efforts to balance major city-centre growth with the need for accessible housing provision. With funding now secured, construction of the affordable housing tower can move forward, helping to unlock the wider development and ensuring Manchester’s tallest-ever building remains on track for delivery. The £50m loan is expected to be repaid once the main tower reaches completion, which is currently anticipated in 2032. When finished, the development will not only redefine Manchester’s skyline but also stand as one of the most significant mixed-use projects delivered in the UK outside the capital. Building, Design & Construction Magazine | The Choice of Industry Professionals

Shawbrook has launched a dedicated Purpose-Built Student Accommodation (PBSA) proposition, responding to growing broker and investor demand for specialist finance in the sector. The bank has already completed a number of PBSA transactions and is now offering dedicated pricing and criteria for experienced landlords operating in the sector. The launch comes amid continued investor appetite for high-quality student accommodation, driven by local demand, changing student expectations and a need to modernise supply across a number of key UK university cities. The proposition includes loans from £500k to £35m, with rates starting from 5.99%, up to 75% LTV on interest-only facilities and terms of up to 25 years. Larger transactions above £2.5m will be supported by Shawbrook’s Structured Real Estate team, recognising the more specialist structuring requirements often associated with PBSA developments and investments. Daryl Norkett, Director of Real Estate Proposition at Shawbrook, said: “We’ve seen increasing demand from brokers and professional investors financing PBSA assets – particularly where borrowers need a lender that genuinely understands how these deals work. Every transaction in this sector is different, and the financing requirements are often more nuanced than in traditional property lending. A dedicated proposition means we can give brokers and their clients the certainty and expertise they need from the outset” Building, Design & Construction Magazine | The Choice of Industry Professionals

New figures from planning and property sector analysts have revealed a mixed picture for the UK’s built environment market, with housing planning applications climbing to their strongest level since 2022 while commercial property investment activity slowed sharply during the opening months of 2026. Data released by TerraQuest shows that residential development activity across England outside London has remained resilient despite ongoing viability challenges and economic uncertainty. Meanwhile, separate analysis from Real Estate:UK and CoStar Group highlights a notable cooling in overseas investment into UK commercial property following a record-breaking 2025. According to TerraQuest’s latest planning application index, developers submitted applications for 71,028 housing units during the first quarter of 2026, making it the strongest opening quarter for housing applications since Q1 2022. Affordable housing also recorded a particularly strong start to the year. The data revealed that 4,225 affordable homes were submitted through planning applications during the quarter, marking the highest start-of-year figure for affordable housing applications since the beginning of the decade. The figures suggest that demand for new housing delivery remains relatively strong across much of England, despite mounting challenges facing developers and contractors. However, the picture in London proved less positive. Housing unit submissions within the capital fell to 9,346 during the first quarter, representing the weakest quarterly performance since Q2 2023 and a significant decline compared with the same period last year. Industry analysts suggest the divergence between planning activity and actual delivery increasingly reflects wider structural challenges within the planning and construction sectors rather than a lack of development appetite. TerraQuest noted that post-approval delays, infrastructure limitations, rising construction costs and ongoing inflationary pressures continue to hinder schemes progressing beyond the planning stage. Broader economic uncertainty and site viability concerns are also affecting developers’ ability to move projects into construction. Alongside the housing market data, the latest investment figures from Real Estate:UK and CoStar Group point to a more cautious commercial property investment environment during the opening quarter of the year. Total UK commercial property investment reached £9.7bn in Q1 2026, almost 40% below the five-year average for the first quarter. Overseas capital accounted for £3.6bn of activity, with inflows from the United States easing considerably following exceptionally strong levels recorded throughout 2025. Analysts suggest the weaker US dollar, elevated financing costs and ongoing geopolitical and economic uncertainty have all contributed to a more cautious approach from international investors towards UK assets. Despite the overall slowdown, the office sector emerged as one of the more resilient asset classes during the quarter. Offices attracted £2.9bn of investment, accounting for around 30% of all commercial property activity, with much of the investment concentrated in London and a select number of major regional cities. Industrial property, by contrast, recorded its weakest quarterly performance in almost six years, reflecting softer investor sentiment following several years of exceptionally strong logistics and warehouse demand. Retail investment activity also remained subdued as investors continued to prioritise more defensive or operationally driven sectors. The softer first quarter follows a particularly strong 2025 for UK commercial property investment. Overseas investment volumes rose by 33% year-on-year to reach £27.2bn last year, making it the fourth strongest year on record and accounting for a record 56% share of all UK commercial property investment activity. Healthcare proved to be one of the standout sectors throughout 2025, driven by long-term demographic demand and continued investor appetite for operational real estate assets capable of generating resilient income streams. Build-to-rent also continued its strong upward trajectory, attracting a record £5.6bn of investment as international investors increasingly targeted professionally managed rental housing schemes across major UK cities. Investor appetite also remained strong for operational real estate sectors including data centres, healthcare, life sciences and professionally managed residential assets, where long-term structural demand drivers continue to support growth despite wider market uncertainty. The latest figures underline how the UK property and development landscape remains increasingly divided between resilient long-term growth sectors and areas facing short-term economic and viability pressures. While planning activity suggests developers remain committed to delivering new housing, ongoing delivery constraints and a more cautious investment environment continue to shape the pace and direction of the market in 2026. Building, Design & Construction Magazine | The Choice of Industry Professionals

NATIONAL procurement specialist Pagabo is inviting suppliers yesterday – 11 May – to bid for places on its next-generation National Framework for Developer-Led Schemes, which has a total anticipated value of up to £26bn. Compliant with the Procurement Act 2023 and Procurement Regulations 2024, the unique procurement offering will support public sector bodies with securing transformative development work through compliant procurement routes over a closed four-year period from 19th October 2026. Following the formation of a 10-year strategic delivery partnership that will see resources, reputation and expertise combined to establish a new benchmark for construction and development procurement, this is one instalment in a series of new frameworks being brought to market by Pagabo and YPO in 2026. YPO is the centralised procurement authority for the framework, while Pagabo is the framework manager responsible for design, delivery and ongoing management.   Suppliers will be appointed to provide a range of developer-led scheme related services including consultancy, legal support and development types. Within each lot, SME inclusivity is embedded, and for the first time, development consultants and legal providers have been added to offer clients a turnkey procurement solution that provides ongoing support, full compliance, reduced risk, cost savings, greater collaboration and broader project outcomes. The framework will be available to all public sector bodies, from local authorities and education providers through to NHS trusts and housing associations. The framework is divided into seven lots. Lots 3 to 6 each include eight development types, and each lot, as well as those containing development types, is further divided into eight geographic areas. The geographical areas that the national framework covers includes the north, midlands, southwest, and southeast of England, London, Scotland, Wales and Northern Ireland. The lots include: Jonathan Parker, development director at Pagabo, said: “The Framework for Developer-Led Schemes has seen extensive use UK wide due to its substantial impact on client ambitions and built environment development. The existing framework supports clients with very prominent challenges in the market, such as compliance, viability and risk, with the new offering designed to do exactly the same and more – while conforming with updated procurement regulations set out within the Procurement Act. “We’ll continue to work closely alongside YPO, appointed suppliers and interested clients to offer effective procurement solutions and support throughout schemes. As well as wanting to see the framework continue contributing to major development and growth across the UK, the framework’s characteristics will ensure value for money, collaboration and impactful social value are prioritised in every procurement.” To date, the successful first iteration of the Developer-Led Framework has delivered projects with a total value of £7.8bn. Throughout the process of renewing the framework, priority has been given to premarket engagement and creating fair and transparent opportunities for suppliers, aligning with the principles at the centre of the Procurement Act 2023 which is now shaping new procurement activity. Jonathan continued: “As the Developer-Led offering has become more popular, we’ve been able to grow our dedicated team at Pagabo, welcoming experienced professionals with both sector specific and regional knowledge that benefits both suppliers and clients. This is an exciting time for Pagabo and YPO, and we both look forward to seeing this second iteration of the framework come to life.” Operating a digital-first, end to end delivery model, the national procurement specialist’s Pagabo+ system will be used as a central platform through which all framework activity will be managed. The single environment will play host to information on and management of new opportunities, call-off activity, performance monitoring and reporting, as well as compliance assurance. Supporting with enhancement of the full lifecycle of procurement and project delivery, appointed suppliers will also be able to use Pagabo Group’s social value and contract management platforms Loop and Sypro. To view the full tender document and submit a bid before the deadline at 12pm on 3 July, visit https://in-tendhost.co.uk/pagabo/aspx/ProjectManage/1279 For more information about Pagabo, visit https://www.pagabo.co.uk Building, Design & Construction Magazine | The Choice of Industry Professionals