UK property management revenue passes £37bn as growth begins to slow
The UK property and facilities management sector generated more than £37.7bn in revenue in 2025, according to new research from Property Inspect. The figure represents annual growth of 4.1% and marks the first time the sector has passed the £37bn revenue milestone. The increase also signals a recovery from 2024, when the industry recorded an unusual decline of 1.7%. Property Inspect’s analysis covers both residential and commercial assets, including services such as maintenance, rent collection, waste management, security and renovation activity. Over the past decade, between 2015 and 2025, the sector has achieved average annual growth of 2.5%. However, while revenues are still rising, the pace of expansion is expected to ease. Forecasts suggest the market will grow by a further 1.5% in 2026, taking annual revenue to around £38.3bn. Property Inspect said the slower rate reflects mounting operational pressures across the industry, including tighter regulation, more complex property portfolios and rising expectations around performance and transparency. The company warned that headline revenue growth does not necessarily mean stronger margins. As portfolios expand and compliance requirements increase, operators are having to manage higher costs and greater day-to-day complexity. Siân Hemming-Metcalfe, operations director at Property Inspect, said passing the £37bn mark was significant, but added that the sector should be viewed as a high-responsibility industry rather than a high-growth one. She said operators are managing larger portfolios and stricter compliance demands, often without a matching increase in margins. She added that inspections are becoming increasingly important as a way to manage risk, maintain standards and support better decision-making. Property Inspect said efficiency, consistency and strong operational control will become key priorities as growth across the sector continues to moderate. Data tables and sources Building, Design & Construction Magazine | The Choice of Industry Professionals
BAM starts 2026 strongly as UK construction profitability improves
Royal BAM Group has reported a solid start to 2026, with revenue and adjusted earnings rising during the first quarter. The Dutch construction group said its order book remained steady at €13bn, while its solvency had improved and its cash position remained robust. The update also pointed to stronger profitability in the company’s UK construction division, supported by disciplined tendering and strong project delivery. Chief executive Ruud Joosten said BAM’s revenue and adjusted EBITDA had increased further in the first quarter, with both main divisions and Belgium contributing to the improved performance. He added that Construction UK had continued to strengthen its contribution, helped by the company’s selective approach to bidding and focus on execution. BAM said it is seeing strong opportunities across several key markets, including energy transition, infrastructure, defence, and sustainable and affordable housing. The group said these areas are being supported by government investment and initiatives in the Netherlands, the UK and Ireland. In the UK, BAM’s civil engineering arm continued to perform strongly, while the wider Construction UK business secured a number of new projects during the quarter. These included a contract for Wales High School in Sheffield, which is designed to meet net-zero operational standards, as well as the Eastwood Park Leisure Centre, theatre and library scheme for East Renfrewshire Council in Scotland. BAM has also been selected for the Department for Education’s multi-year CF25 school framework, strengthening its pipeline in the education sector. In addition, BAM’s Civil Engineering UK business secured a place on the refreshed Procurement Partnerships North West Framework. The results suggest BAM is entering 2026 with a stable order book, improving UK performance and a clear focus on sectors with long-term growth potential. Building, Design & Construction Magazine | The Choice of Industry Professionals
Reds10 Group announces strategic investment in steel fabrication specialist ESL, bringing critical technical capability in-house
Reds10 Group has completed a strategic investment in steel fabrication specialist ESL Fabrication Engineers (ESL). The partnership strengthens Reds10’s vertically integrated, industrialised construction model by bringing critical steel fabrication in-house, enhancing delivery strength and support the business’s next phase of growth. Founded in 2010 by father and son Paul and Gareth Thompson, ESL specialises in the comprehensive delivery of steel fabrication across the UK, from manufacture and installation to repair and maintenance works. The business has grown steadily since its inception, growing its turnover to £7 million in 2026, becoming one of the fastest growing engineering companies in East Yorkshire. The business now employs just under 50 people from its purpose-built factory facility in Kingston upon Hull. ESL will become part of the recently established Reds10 Group, bringing the total number of companies in the group to ten, including Reds10 and its sister companies. The creation of Reds10 Group brings a family of businesses together under one roof to further drive the wholesale industrialisation of design, production and construction, with AI integrated at every stage. ESL has a well-established relationship with Reds10, having worked together for the last five years to deliver high-quality sustainable buildings for the public sector, with a particular focus on defence, education, justice and health. With steel structures being an integral part of industrialised construction, ESL’s specialist technical design capabilities will enhance Reds10’s offering to maximise efficiencies in-house. The companies’ factory locations are geographically complementary, with Reds10 manufacturing off‑site in Driffield, East Yorkshire, and ESL’s purpose‑built facility just 20 miles away in Kingston upon Hull. Speaking of the partnership, Paul Ruddick, chief executive of Reds10 Group, said: “Having worked with ESL for several years, we’ve seen first‑hand the consistent quality of their service and their ambition for excellence and growth, values that closely align with our own. Bringing steel fabrication into the Reds10 Group adds a critical piece of the jigsaw as we launch our next phase of strategic growth to exploit advancing technologies, while integrating AI at every level of the business.” Gareth Thompson, co-founder and managing director of ESL said: “We’ve come a long way since ESL’s inception in 2010 and our partnership with Reds10 feels like a natural next step that will bring clear benefits to both businesses. This marks an exciting next phase in our evolution, and we look forward to building on the strong working relationship we’ve developed with Reds10 in recent years and maximising the opportunities ahead.” The partnership comes after Reds10 reported robust financial results for the 2024/25, with revenue of £144.7m and an industry-leading operating margin of 4.8%. Reds10 has set out an ambitious plan to grow its revenue to £500m and is targeting an expansion into the healthcare sector, as well as the affordable housing and temporary accommodation sectors, providing high quality sustainable homes for local authorities to help them tackle the housing crisis in their communities. Reds10 manufactures all its buildings off-site at its advanced construction facility in Driffield, East Yorkshire, where it has five factories totalling 300,000 sq ft. By investing in its own workforce, the company is able to deliver sustainable and innovative buildings in modern manufacturing facilities which are then transported and assembled on site to the most exacting standards. Building, Design & Construction Magazine | The Choice of Industry Professionals
Port of Dover names contractor line-up for major infrastructure upgrade
The Port of Dover has appointed a new group of contractors to support a long-term programme of civil engineering, marine and infrastructure works. The harbour authority has selected 14 firms across two multi-year frameworks, covering a wide range of projects including utilities, berth upgrades, highways, structures and building works. The appointments come as the UK’s busiest ferry port prepares for a major programme of investment to support future freight growth, ferry electrification and expanded cargo operations. FM Conway, Jackson Civil Engineering, Mitie and UK Power Networks Services were among the biggest winners, securing places on both the major projects and minor works frameworks. Knights Brown also secured positions on both agreements. The major projects framework will run for six years, until 2032, and will cover schemes valued at more than £3m. A separate four-year framework, running until 2030, will be used for projects worth less than £3m. Other firms appointed to the frameworks include Associated Asphalt Contracting, Blu-3, Concrete Repairs, Costain, CPE Projects, McLaughlin & Harvey, M Group Transport, REDEC Refurbishment and Walker Construction. The frameworks will play an important role in the Port of Dover’s wider modernisation plans. The port is currently progressing its Port of Dover 2050 masterplan, which aims to create a more efficient, sustainable and technology-led harbour. Planned investment includes improvements to ferry berths, expanded cargo handling facilities, upgraded roads and utilities, cruise terminal enhancements and new logistics development land. The new contractor line-up gives the port access to a broad range of specialist expertise as it prepares to deliver the next phase of its long-term transformation. Building, Design & Construction Magazine | The Choice of Industry Professionals
HTB provides £13.5m facility to support repositioning of Leeds residential and PBSA scheme
Hampshire Trust Bank (HTB) has provided a £13.5 million facility to support the repositioning of the Kirkstall Brewery campus in Leeds, refinancing existing debt and partially repaying a previous lender. The 18-month facility is secured against a 664-bed former student village in Kirkstall. This comprises a 442-bed parcel with full planning consent for conversion into 151 Class C3 apartments, alongside 202 retained Purpose Built Student Accommodation (PBSA) beds, creating a scheme with multiple potential end uses across Private Rented Sector (PRS) and student accommodation. The structure provides time for asset management and stabilisation, enabling the repositioning of the scheme while maintaining flexibility across a range of exit routes. These include disposal or refinance of the PRS element, sale or long-term leasing of the PBSA accommodation, or a whole-site disposal. No development is planned during the loan term, with refurbishment of the PBSA element funded by borrower equity. The transaction builds on progress already achieved at the site, including the disposal of an eastern parcel to an institutional investor and a long-term lease agreed with Leeds City Council across part of the retained accommodation. The lease is expected to deliver approximately £2.5 million per annum of savings to the council over its term. Full planning consent was granted by Leeds City Council in November 2025 for the conversion of the PRS parcel, providing a clear basis for the next phase of the scheme. Introduced by Johnny Grassick, Associate Director at GLPG, the deal was led by Alexia Evans, Lending Director at Hampshire Trust Bank, supported by Olivia Emmett. Alexia Evans, Lending Director at Hampshire Trust Bank, said: “This was a scheme where the key consideration was how the asset would be managed over time, not just its position today. “With planning in place and clear progress already made, the focus was on structuring a facility that allows that to continue without forcing an early decision, while remaining aligned to how the site will be worked through in practice.” Johnny Grassick, Associate Director at GLPG, said: “There wasn’t a single, defined exit here, but that reflects the strength of the site. “With planning in place, a number of viable routes forward and progress already achieved on parts of the scheme, including the lease to Leeds City Council, the key was putting a structure in place that didn’t restrict those options too early. “This gives the borrower the flexibility to build on that momentum and take the right route as the scheme evolves.” Neil Leitch, Managing Director, Development Finance at Hampshire Trust Bank, said: “This type of transaction is becoming more common where the focus is on repositioning existing assets rather than moving straight into development. “Where planning is already in place, the emphasis shifts to how the scheme is managed, how income is stabilised and how the exit is delivered over time. “That requires a structure which gives the borrower the flexibility to work through those stages properly, rather than forcing a single outcome too early.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Why Flexible Retail Space Is Becoming a High Street Development Tool
Across the UK, the future of the high street is increasingly being shaped by flexibility. For developers, landlords and local authorities, the question is no longer simply how to fill empty units, but how to keep town centres active while long-term plans, occupier mixes and consumer habits continue to change. Short-term retail space is becoming a practical part of that answer. From Vacancy Problem to Activation Strategy Empty retail units have traditionally been treated as a sign of market weakness. Today, they are also being viewed as assets that can be tested, animated and repositioned. A vacant shopfront can weaken footfall when left dark for months, but it can also become a launchpad for a new brand, a local maker, a seasonal operator or a community-led commercial concept. This shift aligns with wider regeneration thinking. London City Hall’s High Streets for All programme places clear emphasis on bringing underused high street buildings back into productive use, while supporting a broader mix of local business, culture and civic activity. For property owners, that creates a more active role: not just waiting for the next conventional tenant, but using interim occupation to prove demand. Why Retailers Want Shorter Commitments Retailers are also changing the way they assess physical space. Permanent stores still matter, particularly for brands that rely on product discovery, service or experience, but the route into bricks and mortar is less linear than it used to be. A brand may want to test a neighbourhood before signing a long lease, trial a new format, support a product launch or create a temporary destination around a campaign. That is where flexible retail formats are becoming useful. For brands assessing a pop up store in London, platforms like xNomad can help connect temporary demand with available spaces in established retail locations, allowing occupiers to test footfall, customer profile and operational fit before making bigger commitments. A Useful Tool for Landlords For landlords, short-term lets are not just a way to generate interim income. Used well, they can provide evidence. A successful temporary activation can demonstrate demand to future occupiers, make a unit feel more desirable, and help a landlord understand which categories work best in a specific location. In some cases, it can also keep a parade or centre feeling active while refurbishment, leasing or planning work continues behind the scenes. The approach is particularly relevant in mixed-use environments, where ground-floor activity has an outsized impact on how a development is perceived. A lively retail frontage can support residential value, strengthen office amenity, and create a more convincing sense of place. Supporting High Street Diversification The high street is no longer a purely retail environment. London Assembly research on high streets highlights the mix of residential, office, leisure, community and retail uses now shaping these locations. That makes temporary retail one part of a wider diversification strategy rather than a standalone solution. Short-term space can support that mix by giving emerging operators a lower-risk route into physical locations. Food concepts, design studios, independent fashion labels, wellness brands and local services can all use temporary occupation to understand demand before scaling. For local authorities and regeneration teams, these activations can also bring fresh activity into areas where traditional retail demand has softened. Experience Still Matters The continued relevance of pop-up retail is partly about experience. As Vogue has noted in its coverage of pop-up power, temporary stores can help brands create immediacy, scarcity and direct customer engagement in ways that online channels cannot fully replicate. That matters for developers too, because memorable physical experiences can give people a reason to visit and revisit a location. For construction and property professionals, this means retail strategy should be considered earlier in the development process. Flexible space, adaptable servicing, good sightlines, and units that can accommodate changing occupiers all make activation easier once a scheme is live. From Stopgap to Long-Term Value The strongest short-term retail strategies do not treat pop-ups as decoration. They treat them as a form of market intelligence. Each activation can reveal what a catchment responds to, which price points work, what dwell time looks like, and whether a brand has the potential to become a permanent occupier. As high streets continue to adapt, flexible retail space is likely to become a more common tool for developers, landlords and councils. It keeps places active, lowers the barrier for new occupiers, and turns uncertainty into evidence. In a market where long leases are harder to secure and consumer behaviour keeps shifting, that flexibility may become one of the most valuable assets a high street can offer.