Housing Applications Surge as Commercial Property Investment Slows Across the UK

Housing Applications Surge as Commercial Property Investment Slows Across the UK

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

Read More »
Biggest block management headaches revealed, as utilities top the list

Biggest block management headaches revealed, as utilities top the list

The latest insight from property management specialist, Rushbrook & Rathbone, has found that utilities, cleaning and gardening are the most common block management requirements, accounting for almost two thirds of all call-outs and maintenance tasks carried out in 2025. Rushbrook & Rathbone’s internal data shines a light on what most frequently drives costs when it comes to block management, analysing both the volume of works carried out and the share of expenditure attributed to each category during 2025. The data shows that utilities were the single most common block management requirement in 2025, accounting for 30.6% of all call-outs and works undertaken. Cleaning and window cleaning ranked second, accounting for 22.1%, whilst gardening made up a further 12.7%. Together, these three categories accounted for 65.4% of all block management activity across the year. General maintenance ranked fourth, accounting for 6.3% of activity, followed closely by fire risk assessment and health and safety requirements at 6.2%. Electrical services also accounted for 5.0% of all work undertaken. However, the categories that occurred most often were not necessarily those that accounted for the largest share of total expenditure. Gardening accounted for the largest share of block management spend in 2025 at 14.9%, followed by insurance at 14.5%, largely driven by increasing premiums across the market, particularly for older buildings or those with higher risk profiles. Management fees also ranked highly at 14.2%, driven by financial administration, compliance with evolving legislation, contractor management, and resident communication, along with cleaning and window cleaning at 14.1%. Despite accounting for 30.6% of all activity, utilities represented just 7.4% of total expenditure, reflecting the fact that whilst they are by far the most frequent requirement, they are generally lower cost on an individual basis. Susan Feasey, Associate Director – Block Management at Rushbrook & Rathbone, commented: “Many people assume that the biggest costs in block management come from major repairs or emergency works, but in reality it is often the more routine and recurring requirements that have the greatest impact. Utilities, cleaning and gardening may not sound particularly significant in isolation, but because they are required so frequently they account for a huge proportion of both the time and cost involved in managing a building. At the same time, there are categories such as insurance and management fees that occur far less frequently, but still make up a significant proportion of overall expenditure. What this really highlights is the complexity of block management. It is not simply about reacting when something goes wrong, but about coordinating a wide range of ongoing requirements in order to keep a building running safely, smoothly and cost effectively.” Data tables and sources Building, Design & Construction Magazine | The Choice of Industry Professionals

Read More »
The Most Common Planning Permission Mistakes and How to Avoid Them

The Most Common Planning Permission Mistakes and How to Avoid Them

Securing planning permission is one of the most important stages of any construction project. But new data obtained by Travis Perkins highlights how timelines can vary significantly across different parts of the country, depending on the complexity of applications and wider pressures on the system. Planning guidance also suggests that delays are not always down to the process itself, with avoidable issues within applications often contributing to longer decision times.  In this piece, Travis Perkins looks at the most common mistakes and how to avoid them, helping project teams keep timelines on track and projects moving. Submitting incomplete or incorrect information One of the most common reasons planning applications are delayed is because they are marked invalid at the point of submission. Research from the Ministry of Housing, Communities and Local Government has found that insufficient or incorrect information is the leading cause of delays to planning applications, highlighting how avoidable administrative issues can significantly slow down the process. Guidance from local planning authorities, including Cotswold District Council, also shows that applications are frequently held up due to missing documents, inaccurate plans or incomplete forms. Common issues include incorrect site location plans, missing ownership certificates and failing to include the correct supporting reports. Even small administrative errors can cause delays. Missing a signature, submitting plans at the wrong scale or failing to include the correct fee can all prevent an application from being validated. When an application is marked invalid, it cannot progress until the required information is submitted, which can add weeks or even months to the process. In some cases, applications may need to be resubmitted entirely, restarting parts of the timeline. Our FOI data shows that even straightforward developments can take between 11 and 22 weeks to determine, meaning delays at validation stage can significantly extend overall timelines. Lee Jackson, Technical Director, Travis Perkins Managed Services at Travis Perkins, says, “Delays often start with relatively small issues at submission stage — missing documents, inconsistent drawings or incomplete supporting information. Taking the time to get the application pack right first time can prevent unnecessary delays further into the programme.” Not aligning with local planning policies Another common mistake is submitting proposals that do not fully consider local planning requirements or wider building regulations at an early enough stage. Each council operates under its own planning policies, covering areas such as design, land use, environmental protection and infrastructure. Applications that conflict with these policies are more likely to be refused or require revisions, which can extend timelines and increase costs. Industry guidance for small developers highlights that overlooking local policy requirements is one of the most frequent reasons schemes run into difficulty, particularly where proposals do not reflect local design standards or community considerations. This is reflected in FOI findings, where some applications were rejected due to concerns around highways, landscape impact and ecology, showing how important it is to consider how a development fits within its surrounding area. In some cases, this can also extend to the materials specified within an application, where elements such as bricks, external finishes or structural components like foundation blocks may need to align with local design and planning policies. Lee Jackson says, “One point that I see all too often is that at the planning stage, current regulations are not always considered as the main focus is on the design. “This is often apparent with Part O, where designs may incorporate large areas of glazing which later need to be reduced during the technical design stage to comply with overheating regulations. This can result in planning consent amendments, adding further time to the process. “Using digital design tools earlier in the process can also help teams assess embodied carbon, test different design approaches and ensure proposals are fully compliant before submission. “Using the regulations to help inform the design from the outset can also support applications with stronger sustainability credentials, particularly when considering factors such as property orientation and the positioning of glazing. “Considering both embodied and in use carbon can also provide valuable supporting information beyond the minimum requirements needed for an application.” For project teams, reviewing local planning policies and technical compliance requirements at an early stage can help reduce the risk of objections, redesigns and amendments later in the process. Factoring in local requirements from the start can lead to a more efficient planning process and improve the chances of securing approval without delays. Failing to engage with neighbours and consultation early Another issue that can delay planning applications is a lack of early engagement with neighbours and local stakeholders. Once an application is submitted, it typically enters a consultation period where nearby residents and interested parties can raise objections or concerns. While not all objections will prevent approval, they can lead to requests for further information or changes to the proposal, which can slow down the decision process. Planning guidance highlights that objections are usually considered based on specific factors such as: • Loss of light or overshadowing• Overlooking or loss of privacy• Increased noise levels• Traffic and access concerns• The scale, height or design of the development Concerns that fall outside of these areas are less likely to influence the outcome, but well founded objections can still result in delays or revisions. This means that even relatively small projects can face setbacks if potential concerns are not addressed early. Jackson comments, “Engaging with neighbours early can help identify potential concerns before an application is submitted. Small changes to a design at an early stage can often prevent more significant issues later on.” For developers and project teams, taking a proactive approach to consultation can help minimise objections and avoid delays once an application is under review. Understanding local sensitivities and addressing concerns upfront can lead to a smoother planning process and improve the chances of approval. Applying for planning permission when permitted development would be enough Another common mistake is applying for full planning permission when the work could fall under permitted development rights. Government guidance

Read More »
Shawbrook Launches Dedicated PBSA Finance Proposition

Shawbrook Launches Dedicated PBSA Finance Proposition

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

Read More »
Whitbread Faces Break-Up Pressure as Major Investor Demands Sale

Whitbread Faces Break-Up Pressure as Major Investor Demands Sale

Hospitality giant Whitbread PLC is facing mounting pressure after activist investor Corvex Management LP called on the company to launch a formal sale process, claiming it is the “only credible path” to unlocking shareholder value. Corvex, which holds an economic interest in more than 11.8 million Whitbread shares – representing around 7% of the business – issued a strongly worded letter to Whitbread’s board and shareholders criticising the company’s long-term strategy and financial performance. The investment firm argued that Whitbread’s current five-year growth plan continues to pursue “value-destructive” policies, despite concerns previously raised with the board in December 2025. Corvex claims the company has failed to respond to worsening market conditions and shareholder frustrations. At the centre of the criticism is Whitbread’s proposed expansion strategy, which includes plans to add around 14,000 non-AGP hotel rooms across the UK and Germany over the next five years. Corvex also opposed the company’s increased sale-and-leaseback target of approximately £1.5bn, arguing that monetising valuable freehold assets to fund future growth carries significant risk. The investor highlighted Whitbread’s recent share price struggles, noting the stock is currently trading at a 13-year low of around £23 per share and at less than eight times pre-tax profit. According to Corvex, the valuation implies the market is assigning little or no value to parts of Whitbread’s wider business portfolio, including its German hotel operations and development pipeline. Corvex further stated that Whitbread has delivered double-digit negative returns across one, three, five and ten-year investment periods, blaming what it described as persistent structural complexity and poor capital allocation decisions. The firm is now urging Whitbread to appoint an independent investment bank and commit publicly to a comprehensive sale process. It also called for an immediate pause on non-AGP growth expenditure and future sale-and-leaseback deals while strategic options are explored. Corvex warned that if the board refuses to pursue a sale, it is prepared to nominate a new slate of directors in an attempt to force strategic change at the company. Building, Design & Construction Magazine | The Choice of Industry Professionals

Read More »
120 Sunbelt Rentals teammates complete Cumbrian Challenge in support of veterans

120 Sunbelt Rentals teammates complete Cumbrian Challenge in support of veterans

120 teammates from Sunbelt Rentals UK and Ireland successfully completed the Cumbrian Challenge in the Lake District, held across Friday 15th – Saturday 16th May, raising £19,000 to date for Walking With The Wounded. As headline sponsor of the charity’s flagship fundraising event, the business joined organisations, businesses and individuals to take on the challenge in support of veterans and their families. Now in its 6th year of participation, Sunbelt Rentals continues to demonstrate its commitment to the armed forces community through this event. Colleagues from across the business took on one of three routes: Across all routes, teams navigated challenging terrain and conditions, demonstrating strong collaboration and determination throughout. The Cumbrian Challenge brings participants together each year for a team-based event in the Lake District, raising funds to support veterans as they transition back into civilian life. Funds raised contribute to employment support, mental health services and care coordination. Leanne Casey, Project Lead Cumbrian Challenge, said:“It’s been a privilege to lead such a committed and collaborative team at the Cumbrian Challenge. Working alongside Walking With The Wounded, colleagues have not only taken on a physical challenge but also made a meaningful contribution to a cause that truly matters – an achievement I’m incredibly proud of. A huge thank you to everyone involved for your dedication, teamwork and support in making this such a success.” Joel Oxberry, Chief Operating Officer, Walking With The Wounded, said:“The support shown by Sunbelt Rentals throughout this year’s Cumbrian Challenge has been nothing short of outstanding. Not only did they come on board as headline sponsors, but they also brought an incredible 30 teams to the event and helped raise nearly £20,000 in support of veterans and their families across the UK. Their energy, enthusiasm and commitment to the Armed Forces community was visible throughout the weekend, and we are hugely grateful for the partnership, generosity and team spirit they continue to show Walking With The Wounded.” Participants supported one another throughout, with a strong sense of camaraderie from start line to finish. Sunbelt Rentals is proud to support Walking With The Wounded and the work they do to help veterans and their families move forward, and looks forward to supporting the challenge again in the future. Building, Design & Construction Magazine | The Choice of Industry Professionals

Read More »