Housing Minister renews pledge to dismantle anachronistic leasehold system
Matthew Pennycook MP stated that leasehold remains a barrier to a fair and efficient property market and confirmed that the UK Government aims to ‘get the job done’ by the end of this Parliament, making commonhold the default tenure for new flats. However, he also stated that reform must be phased to avoid legal, administrative and market disruption — meaning the five million existing leases in England and Wales will not end immediately. central part of the reform programme is the draft Commonhold and Leasehold Reform Bill, which was published in January 2026. The Bill introduces a new legal framework for commonhold and includes measures to ban the use of leasehold for new flats, building on the existing ban on most new leasehold houses. The UK Government’s position is that leasehold should be stopped from renewing itself, while existing leaseholders should be given clearer routes to take control of their buildings and leave the system when they choose. The draft Bill proposes a new conversion process that would allow a block to move to commonhold where at least 50% of qualifying leaseholders agree. Propertymark supports the ambition to make commonhold a more realistic option, but we have warned that the shift will need careful implementation. Commonhold will involve new documents, new processes, new management arrangements and new responsibilities for homeowners and property professionals. Consumers and agents will need clear guidance and practical support to understand how the system works. Ground rent cap must not leave leaseholders waiting too long The Minister also confirmed that the UK Government intends to cap ground rents at £250 per year, before reducing them to a peppercorn rate after 40 years. Propertymark welcomes the commitment to bring ground rents down, but we have raised concerns about the proposed timeframe. Our evidence to the Housing, Communities and Local Government Committee stated that a 40-year transition is too slow to provide meaningful relief for many existing leaseholders. We have also warned that the cap must not allow ground rents that are currently below £250 to be increased to that level where no escalation clause exists. This matters for the market now. Our research found that 78% of agents said leasehold properties with escalating ground rent would struggle to sell, even if priced correctly. Building, Design & Construction Magazine | The Choice of Industry Professionals
Glencar completes Tech Foundry 3, expanding life sciences infrastructure at Harwell
A 70,000 sq ft multi-occupier development designed to support innovation, research and advanced manufacturing within one of the UK’s leading science campuses. Glencar is proud to announce the successful completion of Tech Foundry 3, a new 70,000 sq ft multi-occupier technology development at the Harwell Science and Innovation Campus in Oxfordshire, marking another key milestone in the company’s expanding portfolio within the UK’s life sciences and advanced technology sectors. Delivered on behalf of Harwell Science and Innovation Campus, the scheme provides flexible mid-tech units designed for research, innovation, and advanced manufacturing occupiers. The speculative development has been constructed to a shell specification, enabling future tenants to tailor the spaces to meet their specific operational and laboratory requirements. Located at Tech Edge West, Curie Avenue, Harwell, the project forms part of the campus’ continued expansion to support a growing community of scientists, engineers and technology businesses within the Oxford–Cambridge innovation corridor. Designed for Innovation and Flexibility Tech Foundry 3 has been designed as a multi-use, multi-occupier facility, providing high-quality space that can accommodate a range of R&D and light industrial uses. The development comprises multiple units arranged within a distinctive architectural form and has been designed to provide flexible letting opportunities for mid-tech occupiers. Construction commenced in February 2025, with an initial six-week enabling works phase, followed by a 50-week main construction programme, with practical completion achieved in April 2026. Key features of the development include: The design also incorporates a sawtooth roof profile, allowing for the integration of solar panels on south-west facing roof sections to support the campus’ sustainability ambitions. Strengthening a Long-Standing Partnership The completion of Tech Foundry 3 marks Glencar’s third project for Harwell, further strengthening the company’s partnership with the campus and its role in delivering specialist infrastructure for the UK’s rapidly expanding life sciences sector. Roy Jones, Managing Director – South at Glencar, said: “We are delighted to have successfully delivered Tech Foundry 3 at Harwell Science and Innovation Campus. As an established contractor in the life sciences and advanced technology sectors, projects such as this demonstrate Glencar’s ability to deliver high-quality, flexible facilities that support innovation and scientific advancement. Working closely with the Harwell team and our project partners, we have created a development that will provide forward-thinking businesses with the space and infrastructure they need to grow and thrive. We are proud to continue strengthening our relationship with Harwell and to contribute to the campus’ ongoing expansion as one of the UK’s leading centres for scientific discovery and innovation.” Jason Stafford, Development and Construction Director at Harwell, said: “We’re delighted to complete the latest addition to Harwell’s development pipeline. Tech Foundry 3 complements our existing portfolio while providing highly flexible, future-ready space for science, innovation and technology focused occupiers. Its high quality design, significant sustainability achievements, including the connection to the Campus’ innovative Smart Grid, and its nature sensitive landscape setting, is credit to the developer, consultant and contractor team that have worked hard on its delivery.” Supporting the UK’s Life Sciences Growth Harwell Science and Innovation Campus is one of the UK’s leading science clusters and home to world-leading research organisations, technology companies and national laboratories. Developments such as Tech Foundry 3 play a crucial role in providing the next generation of flexible, design-led laboratory, research and technology space required to support continued growth across the sector. Glencar has established a strong track record in the delivery of specialist facilities for the life sciences sector, supporting the development of research, laboratory and advanced manufacturing environments across the UK. Recent projects include the delivery of a 60,000 sq ft fully fitted laboratory and office building at Chesterford Research Park in Cambridge for Aviva Investors. As demand for specialist laboratory, R&D and advanced manufacturing space continues to accelerate, Glencar remains committed to delivering high-quality, sustainable developments that enable scientific discovery, innovation and economic growth. Building, Design & Construction Magazine | The Choice of Industry Professionals
British Land unveils major Glasgow Fort expansion with Scotland’s biggest M&S planned
British Land has submitted plans for a major 60,000 sq ft extension at Glasgow Fort, in a move that could significantly expand the shopping park’s retail and leisure offer. The proposals include a major enlargement of the existing M&S store, adding more than 32,000 sq ft of space. If approved, the upgraded store would become the retailer’s largest in Scotland, creating a flagship destination for shoppers at one of the country’s busiest retail parks. The wider plans also include an improved leisure offer, with new attractions such as bowling and arcades proposed as part of the development. British Land said the expansion has been shaped by feedback from two public consultation events held last year, as well as growing demand from visitors. Glasgow Fort has seen strong trading momentum, with the retail park recording its highest-ever visitor numbers in 2025. Footfall has risen by 8% over the past 12 months, supported by demand across fashion, health and beauty, food and drink, and wider lifestyle categories. M&S said the proposed extension would allow it to provide a larger and more modern store for customers in Scotland. Rachel Rankine, regional manager at M&S, said the plans would create a standout destination at Glasgow Fort, with more space to showcase the retailer’s food, fashion, home and beauty ranges. British Land said the application reflects its confidence in Glasgow Fort’s long-term growth and the continued strength of well-located retail parks. The company said the scheme would be one of the first significant retail and leisure developments to come forward in the UK in recent years, pointing to renewed confidence in the sector. Matt Reed, head of asset management at British Land, said the company is continuing to invest in and evolve Glasgow Fort to meet changing consumer habits. He said the aim is to create a vibrant environment that supports retailers while giving visitors more reasons to spend time at the destination. If approved, the expansion would further strengthen Glasgow Fort’s position as one of the UK’s leading retail park destinations, combining larger-format shopping with leisure and food and drink uses. Building, Design & Construction Magazine | The Choice of Industry Professionals
Arc & Co. structures debt and equity funding package for £40m Bristol PBSA scheme
Arc & Co. has successfully structured a debt and equity facility for a landmark 135-bed purpose-built student accommodation (PBSA) development in Bristol. The complex transaction brings together Downing LLP as senior debt provider and Hame Capital as equity partner in a strategic joint venture with the sponsor Colico Living. The finalised financing package includes a circa £26 million senior development facility from Downing alongside a preferred equity investment from Hame Capital. Structured at approximately 68% LTGDV and 77% LTC, the facility is designed to support the full delivery of the scheme through to completion and stabilisation. This project marks a major achievement for Arc & Co., representing the culmination of more than a year of dedicated advisory work led by Senior Broker Corey Dennis. To bring this scheme to fruition, the team navigated a particularly selective capital markets environment and overcame a series of significant hurdles. This intensive process included managing intricate valuation challenges and facilitating a total redraft of the planning application to address amenity space requirements before successfully securing approval. This case represents a significant period of intensive advisory work and highlights the value of deep industry relationships when a borrower’s capital is heavily concentrated in the planning phase. Led by Senior Broker Corey Dennis, the team navigated a selective market to engineer a 100% funding solution via a £26m senior facility and preferred equity. Demonstrating a holistic commitment to client comfort that went well beyond the standard remit, the team aligned these terms with the 43-month build plan. In doing so, Arc & Co. solved a major developer pain point and provided the sponsor with essential long-term security. Corey Dennis, Senior Broker at Arc & Co., commented: “This was a complex, multifaceted transaction given the scale of the project and the extensive planning process. We carefully structured the funding package to ensure the scheme was fully capitalised while supporting the sponsor’s overall strategy. It was about finding that specific alignment between Downing and Hame Capital that truly recognised the project’s long-term value.” “We are seeing a market shift where developers are moving towards asset stabilisation over disposals, due to the slower sales market, which naturally impacts liquidity. In this environment, success depends on having a partner who understands the nuances of the entire capital stack and which senior and equity partners to approach. That depth of specialist knowledge played an important role in delivering the transaction.” Will Powell, Investment Director at Downing, commented: “We were delighted to close this significant funding package for an experienced and capable sponsor delivering a well-designed student scheme in central Bristol. The financing came with a number of complexities concurrent with this type of deal, and we are looking forward to seeing the project progress over the coming months. A big thanks to all involved.” The development is ideally positioned to serve Bristol’s two leading universities and is now in a position to progress through Gateway 2, with construction slated to begin in early 2027. Key contributions to the transaction included Scott Harvey at Hame Capital and Will Powell at Downing LLP. Building, Design & Construction Magazine | The Choice of Industry Professionals
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