UK cities entering a new era of mixed-use development
City centre development is becoming more integrated, with residential rental tenures now dominating delivery, prime office supply tightening, and retail reshaping regeneration across the UK’s major regional cities, according to a new report by Savills. This new phase of regeneration within UK cities is becoming defined by increasingly integrated mixed-use development, as residential, commercial and leisure uses become more interdependent in response to shifting economic dynamics, changing patterns of urban living and evolving investor preferences. Across regional markets, the balance between demand, development viability and structural change is shaping the next cycle of urban growth. According to the latest report by Savills Research – UK Cities: a mixed-use perspective – the decade leading up to the global financial crisis saw city centre development in the Big Six regional cities (Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester) dominated by private sale housing. Over the last 10 years, however, a much broader mix of uses has emerged, with Build to Rent (BTR) overtaking private sale as the primary driver of city centre housing delivery, Purpose-Built Student Accommodation (PBSA) expanding rapidly, and co-living emerging as a new asset class. This shift reflects strong demand fundamentals and the growing role of institutional capital, which has supported large scale, placemaking-led regeneration. Savills notes that rental growth across the Big Six has averaged between 4% and 7.5% per year over the last five years, supporting strong returns – although continued build cost increases and growing affordability pressures mean developers and local planning authorities will need to take a pragmatic approach to viability in order to maintain strong development pipelines. The report also highlights a significant structural shift in office markets. In the post-pandemic environment, uncertainty around hybrid working contributed to rising vacancy in older, less efficient buildings, but demand has become increasingly polarised as occupiers prioritise modern, highly sustainable offices in central, well-connected locations. More than 60% of expected 2026 office take-up is forecast to be Grade A and prime, underlining the depth of demand for high-quality space. At the same time, the office development pipeline remains exceptionally thin. Savills states that only Manchester and Leeds currently have new schemes under construction that are due to complete beyond 2026, leaving supply constrained just as occupiers focus on securing prime accommodation. Prime headline office rents have risen by an average of 30% over the past five years and, if that trajectory continues, could soon approach the £60 per sq. ft. threshold that many developers consider necessary to re-establish viability. Retail is also evolving, moving away from traditional formats towards mixed-use environments centred on experience, leisure, and food and beverage. In this context, retail plays an essential role in placemaking by supporting footfall and enhancing the attractiveness of city centres. Ground-floor activation – including shops, bars, restaurants and cafés – is increasingly recognised as the element that connects homes, offices and hotels, helping to attract target occupiers and residents while maximising value across the wider scheme. Research from Savills also illustrates the scale and diversity of delivery across the UK’s major urban markets between 2016-2025. Among the Big Six, Manchester recorded 5.3 million sq. ft. of office delivery, 15,650 BTR homes and 3,448 co-living beds, while Birmingham delivered 3.4 million sq. ft. of offices, 6,397 BTR homes and 6,985 student beds. Leeds delivered 10,042 student beds, while Edinburgh recorded 947,000 sq. ft. of retail delivery. Looking ahead, Savills says city centre development will continue to be driven by strong underlying demand, but increasingly constrained by viability challenges. Emily Williams, Director of Residential Research at Savills, says: “Residential is expected to remain at the heart of city centre regeneration, particularly through rental-led models, although rental growth is expected to moderate as affordability limits are reached. High construction costs, borrowing costs and regulation are all expected to continue restricting new supply and widening the gap between demand and delivery.” Jonathan Lambert, Co-lead of Savills’ Mixed-Use Sector Group, adds: “Market polarisation is certainly a defining theme, with larger and more established cities best placed to sustain development, while smaller or more constrained markets may struggle in a higher-cost, higher-risk environment, particularly where planning obligations present too many challenges. “Local authorities will need to adopt a pragmatic approach to viability, with public-private partnerships and the attraction of long-term patient institutional capital likely to be key to unlocking future opportunities.” Building, Design & Construction Magazine | The Choice of Industry Professionals
McAlpine Exits £4bn Agratas Gigafactory Project as TSL Takes the Helm
Sir Robert McAlpine is stepping away from one of the UK’s most significant industrial developments after agreeing to part ways with client Agratas on the next phase of the £4bn electric vehicle battery facility in Somerset. The contractor has confirmed that it will no longer be involved in the delivery of the Agratas gigafactory at Bridgwater, having successfully completed the initial phase of the landmark project. Buckinghamshire-based engineering and construction specialist TSL has now been appointed as the new construction partner. McAlpine secured the prestigious contract in 2024, winning the race to deliver the first phase of the major battery manufacturing plant, which is being developed by Agratas, Tata Group’s global battery business. Tata Motors subsidiary Jaguar Land Rover (JLR) is expected to be one of the anchor customers for the facility, which represents a substantial investment in the UK’s rapidly expanding electric vehicle supply chain. In a statement, Sir Robert McAlpine said: “Having successfully completed the first phase of Agratas’s battery manufacturing facility in Somerset, following extensive discussions, we have mutually agreed to part ways. “We are now working closely with Agratas to support a smooth and orderly transition to a new construction partner.” Agratas said the decision had been made following a review of the project’s evolving requirements and reflected the need for a different approach as the development moves into its next stage. The company stated: “As the project has progressed, we have determined that a different construction delivery model is needed to support the next phase of our development. “Following a review of the project’s requirements, we have decided to transition to a new construction partner. We thank our existing construction partner for their support to date. “This change reflects the evolving needs of the project, positioning us to deliver the next phase with the capability and focus required to meet our objectives safely, efficiently and on schedule.” McAlpine expressed pride in the progress achieved during its involvement with the scheme and highlighted the contribution of its wider project team and supply chain partners. The contractor added: “We are immensely proud of the progress and achievements made to date, done so in true partnership with our supply chain partners and remain committed to supporting Agratas with the effective handover to the next phase.” The Agratas project had been viewed as a flagship example of Sir Robert McAlpine’s strategic focus on key growth sectors, following a business reset that saw the firm prioritise industrial, commercial and healthcare opportunities. Taking over responsibility for the next phase is TSL, the Gerrards Cross-headquartered technical engineering and construction specialist. The company operates across Europe, the Middle East and Africa (EMEA), the Americas and the Asia-Pacific region, with expertise in delivering complex industrial and advanced manufacturing facilities. According to its latest financial results, TSL reported a turnover of £527m in 2024 and achieved a pre-tax profit of £27m, underlining the company’s growing presence within the industrial construction sector. The Somerset gigafactory is one of the UK’s most strategically important manufacturing projects and forms a key part of the nation’s ambitions to strengthen domestic battery production capabilities to support the transition to electric vehicles. Once operational, the facility is expected to supply batteries for Jaguar Land Rover’s next generation of electric vehicles, while also helping to secure thousands of jobs and reinforce the UK’s position within the global automotive industry. Construction on the development continues, with the plant currently scheduled to become operational next year as Agratas advances the next phase of delivery under its new construction model. Building, Design & Construction Magazine | The Choice of Industry Professionals
Derbion Masterplan Secures Green Light for 1,150 New Homes in Derby City Centre
A major regeneration programme set to reshape Derby city centre has moved a significant step forward after plans to deliver more than 1,150 new homes received planning approval. Shopping centre owner Derbion has secured consent for an ambitious mixed-use masterplan that will transform two prominent redevelopment sites, supporting Derby’s long-term vision to create a more vibrant and sustainable city centre. The approved proposals focus on the former Eagle Market site and the nearby Bradshaw Way Retail Park, both of which have been identified by Derby City Council as priority regeneration areas within its wider Vision for Derby strategy. The largest element of the scheme will see the long-vacant Eagle Market site redeveloped to provide 674 new homes across six residential buildings. The plans aim to breathe new life into a key city centre location that has remained underutilised since the closure of the historic market complex. Meanwhile, the Bradshaw Way Retail Park site will accommodate a further 478 homes, including a landmark 14-storey residential tower that is expected to become a defining feature of Derby’s evolving skyline. Derbion said the development forms a central part of its broader strategy to diversify the city centre by creating a thriving mixed-use destination where people can live, work and socialise. Alongside new homes, the wider vision seeks to strengthen Derby’s retail, leisure and hospitality offer by increasing footfall and supporting local businesses. The company believes that encouraging more people to live in the city centre will help attract additional investment from retailers, food and beverage operators and leisure brands looking to benefit from a growing residential population. The professional team behind the proposals includes Leonard Design Architects, Currie & Brown, Bidwells and Waterman. Beth McDonald, Managing Director at Derbion, described the masterplan as a once-in-a-generation opportunity to contribute to the revitalisation of Derby’s historic heart. She said the approval represented an important milestone in delivering much-needed new homes while creating the conditions for further economic growth and investment across the city centre. The development is expected to play a pivotal role in Derby’s regeneration ambitions, helping to transform underused sites into vibrant new neighbourhoods that support the city’s future prosperity. Building, Design & Construction Magazine | The Choice of Industry Professionals
DMA Group secures Hard FM contract with Thurrock Council through Fusion21 Framework
Property maintenance specialist DMA Group has been appointed by Thurrock Council to deliver Hard Facilities Management services across its corporate estate. The contract was secured through the Fusion21 Workplace & Facilities Management Framework (Lot 4 – Building Engineering Services). Greater Essex based unitary authority Thurrock Council manages a diverse portfolio of civic buildings and community facilities that support frontline services across the borough. As the Council progresses its recovery and transformation agenda, ensuring a resilient, compliant and efficient property estate is central to delivering reliable public services and supporting sustainable place-making. Under the three-year contract, with options to extend, DMA will provide a fully integrated Hard FM solution including reactive repairs, planned preventative maintenance, statutory compliance testing, asset installation and minor project works. The service model is designed to provide single-source accountability, transparent governance and measurable performance improvement. Central to delivery will be DMA’s award-winning BiO® service management platform, which provides real-time visibility of asset condition, compliance status and KPI performance. The platform enables automated scheduling, digital certification, live dashboards and full audit trails, supporting data-led decision-making and improved cost control. The contract incorporates clear sustainability and social value commitments. DMA will prioritise local supply chain engagement and employment opportunities within Thurrock, alongside apprenticeship pathways to support skills development in engineering and building services. In parallel, its energy and sustainability specialists will work with the Council to identify practical, cost-effective carbon reduction initiatives aligned with net zero ambitions. Steve McGregor, Executive Chairman of DMA Group, said: “We are proud to have been appointed by Thurrock Council through the Fusion21 framework. This partnership is about delivering visible improvement, strengthening compliance and providing long-term value. “By combining experienced engineers with our BiO® digital platform, we will deliver a transparent, accountable and future-ready Hard FM service that supports the Council’s operational resilience and sustainability objectives.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Adaston and Synergize secure places on £695m national building safety framework
Yorkshire-based specialists Adaston and Synergize have both secured places on the £695m Procure Plus Framework. Harrogate-headquartered Adaston has been appointed to Lot 4 – Fire Precaution and Compartmentation Works National, while Synergize has secured a place on Lot 11 – External Fabric Improvements to Medium and High Rise Building. Both lots are part of the “Framework for Building Safety and Compliance Works, and Associated Consultancy Services”. The framework provides public sector organisations and housing providers with a compliant route to market for specialist building safety and refurbishment works, supporting faster procurement and access to pre-vetted contractors. Being part of the framework strengthens their ability to deliver compliant fire safety and building improvement projects for public sector clients across the UK. The dual appointment creates a unique combined offering across internal and external building safety works, enabling the two Yorkshire firms to support clients with integrated solutions spanning passive fire protection, fire doors, compartmentation, façade remediation and wider building modernisation works. Paul Ward, Acting Managing Director of Adaston, said: “Being appointed to the Procure Plus framework is an important strategic milestone for Adaston and reinforces our position as a trusted specialist in passive fire protection and compartmentation works. “Frameworks such as Procure Plus provide public sector clients with confidence that they are working with competent, compliant contractors who understand the complexities of modern building safety requirements. “This appointment also creates exciting opportunities to collaborate alongside Synergize to provide clients with a more holistic approach to fire safety and building compliance projects.” Mark Loftus, Managing Director of Synergize, said: “Securing a place on the Procure Plus framework is a significant achievement for Synergize and reflects the strength of our expertise in external building improvements and remediation works. “As demand continues to grow for specialist high-rise compliance and refurbishment solutions, frameworks like this are becoming increasingly important in helping housing providers and public sector organisations deliver projects efficiently and compliantly. “Together with Adaston, we can now offer a genuinely complementary service that addresses both the internal and external aspects of building safety and modernisation.” Procure Plus supports social housing providers and public sector bodies with compliant procurement solutions for building maintenance, compliance and capital works projects. The framework appointment comes amid continued growth for both businesses as demand increases for specialist remediation, compliance and refurbishment expertise following evolving building safety legislation and regulatory reform. Building, Design & Construction Magazine | The Choice of Industry Professionals
New active travel bridge for Cardiff by Moxon and Arcadis gets go-ahead
Moxon Architects and Arcadis have been granted planning approval for a new pedestrian and cycle bridge across the River Taff in Cardiff. The 165m-long bridge is part of Cardiff Council’s ambitious Channel View Estate regeneration scheme and will improve connectivity and accessibility, encouraging active travel at a local and city-wide scale, while providing a new leisure destination for the city. The new crossing will connect surrounding neighbourhoods, Grangetown and Butetown, with locally popular green spaces, The Marl to the west, and Hamadryad Park to the east. It will also serve up to 360 new homes along the western riverbank, better connecting them to the City Centre and Cardiff Bay. By anchoring the bridge within the existing urban fabric, it will help connect communities, providing a safe route between the new housing on the west side with an established Welsh school on the east, benefitting new and existing residents. Located where the River Taff widens as it approaches Cardiff Bay, the river crossing has been shaped by its proximity to the Louisa Shipwreck, a Scheduled Ancient Monument, and the new Channel View Estate. The 6m-wide crossing will comfortably accommodate both pedestrians and cyclists, forming a peaceful and safe connection across the river, and providing a much needed alternative to the major A4232 dual carriageway bridge to the south, and the narrow sidewalks along the Clarence Road bridge to the north. The bridge’s design reflects the intersection of urban, park, river and coastal environments. With a main span of 60m, the new crossing will be visible from the adjacent green spaces, as an S-shaped path that curves in both plan and elevation. The western bend occurs at the high point over the navigation channel, providing sufficient clearance for river traffic, while the eastern bend creates symmetrical side spans and breaks up the long ramp heading into Hamadryad Park. Within the main span, the structural flange ‘ribbon’ rises from the bottom of the girders over the piers, to the height of the pedestrian balustrade at mid span. This gives users a dynamic experience while providing a sense of enclosure at the highest, most exposed part of the crossing. It also forms a structural arch from which the deck will hang. The pathway widens at this point to incorporate a curving bench to rest and view the river and surrounding landscape. Connecting paths will be modified to ensure the structure sits above future flood events. At The Marl, landscaped paths will lead users directly onto the bridge, while at Hamadryad Park, approach ramps will integrate into the existing perimeter paths. Gentle gradients, along the approaches and bridge, will allow full accessibility to those with limited mobility. The use of colour and materials will accentuate the bridge form. A contrasting finish to the flange ‘ribbons’ will stand out against the darker web and exposed ribs supporting the deck. Stainless steel parapets with visually light infill mesh will follow the deck’s curving edges to highlight the bridge’s dynamic form. The bridge steelwork will be prefabricated in large sections, and potentially transported to site along the river. The three concrete supports will also feature prefabricated elements. The bridge’s lean and efficient design will minimise local environmental impact and its overall carbon footprint. Water life, bats and birds using the river corridor have all been considered throughout the design process and biodiverse landscaping at the landings will reinstate any natural habitat lost during construction. Ezra Groskin, Director at Moxon Architects, said: “It’s been a pleasure helping this project mature in response to Cardiff’s aspirations and the local community’s feedback. Our ambition is to create an elegant local landmark that will provide a vital link for pedestrians and cyclists, connect communities and enhance people’s experience of the river and the surrounding parkland.” Vita Dudley Bow, Project Lead at Arcadis, said: “This is a really exciting bridge that will deliver a fantastic active travel link in an area of Cardiff that is seeing huge transformation. It’s been great to work with Cardiff Council and Moxon on a project that will bring tangible benefits to the community.” Councillor Lynda Thorne, Cabinet Member for Housing and Communities at Cardiff Council, said: “The bridge development will create much better connectivity between Butetown and Grangetown for both pedestrians and cyclists, linking into our exciting regeneration of Channel View, creating more good quality, affordable homes in the area.” Building, Design & Construction Magazine | The Choice of Industry Professionals