GLENIGAN CONSTRUCTION FORECAST: Against all odds, recovery remains on track
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.
SALBOY launches sales at DUKE’S ROW CAMDEN, the developer’s fourth boutique regeneration scheme in central London
Salboy Group, the nationwide property development and funding company, has launched sales at Duke’s Row, a £12.6m GDV boutique scheme in Camden, central London. Named after the Duke of Bedford who created the square on which the scheme is located, Duke’s Row is Salboy’s fourth design-led boutique London scheme since 2022. Construction is already well underway and the scheme is scheduled to complete on time and on budget by August 2027. Duke’s Row will be a six-storey building made up of 10 one/two/three-bed apartments as well as a three-bedroom penthouse. Property sizes range from 52 sqm to 135 sqm. All of the apartments come with private terraces or balconies, and the penthouse benefits from a 75sqm, west-facing wraparound terrace. Duke’s Row was designed by Studio Power, one of Salboy’s long-term architectural partners, whose attention to design detail complements the scheme’s position within the Camden Town Conservation Area as well as the architectural history of the adjacent Harrington Square Gardens which were laid out in the 1840s. The scheme will bear all the hallmarks of Salboy’s high quality finish. A brick and cast stone façade will give the building a historically sensitive yet contemporary look, complete with arched openings at ground level. Internally engineered timber flooring, quartz worktops, brushed brass ironmongery and expansive glazing feel refined and considered, while rooftop solar panels, air source heat pumps and a likely ‘B’ band EPC ensure that the building fully adheres to modern design and engineering expectations. Duke’s Row is located in the heart of north London’s busy Camden Town neighbourhood, popular with young professionals and young families who want close proximity to the city centre. A lively shopping, entertainment and restaurant scene is available on the residents’ doorstep; Regent’s Park can be reached on foot in 18 minutes, and King’s Cross’ regeneration scheme Coal Drops Yard (home to the new Google HQ) is only 20 minutes away on foot or less than 10 minutes by bike. The scheme is also a two-minute walk from Mornington Crescent underground station with fast links into central London, the City, Canary Wharf and Heathrow. Salboy is developing Duke’s Row in partnership with Forge Homes, an experienced boutique residential developer operating across London, Essex and Kent. Established in 2022, Forge Homes has built a track record delivering carefully designed small-scale residential schemes, including completed and live developments in Rochford, Walderslade, Orsett, Wanstead and Camden. Forge Homes partnered with Salboy to optimise and diversify its offer by entering the higher-value central London residential market. Duke’s Row is one of Salboy Capital’s active partnership-led development sites, delivered as part of a national platform supporting developers across the UK. It is also one of two Salboy residential schemes currently under construction within a 10-mile radius of central London, alongside Old York Mews in Wandsworth. Simon Ismail, Co-Founder & MD of Salboy, comments: “Developing a scheme in central London comes with many complexities such as planning, site accessibility, and the premium cost of labour and materials. For many smaller-scale developers these challenges have proven time and again to be prohibitive. Joining the Salboy community as a joint venture partner opens up access for these developers to economies of scale that bring down costs, as well as over 12 years’ planning, cost and project management expertise, enabling them to bring their central London ambitions to life. We’re delighted to be bringing forward this scheme in Camden with Forge Homes, another Salboy footprint on prime London living. Duke’s Row blends our standards for high quality finishes with Forge Homes’ dedication to craftsmanship. We look forward to seeing the results and welcoming buyers to make their homes there.” Dan Harvey & Harry Bushrod, at Forge Homes, add: “Duke’s Row is exactly the type of scheme where detail matters. Camden is a highly sensitive location, so every decision, from the brick and cast stone façade to the internal specification and the way the building responds to Harrington Square, has had to be carefully considered. Our approach has been hands-on throughout because boutique residential schemes depend on close control of quality, workmanship and delivery. Working with Salboy has allowed us to bring that approach into a central London setting, supported by the funding, experience and market reach needed to do the site justice.” Sales of the properties are being led by Salboy’s own sales team. Building, Design & Construction Magazine | The Choice of Industry Professionals
First ultra-rapid EV hub in Fastned & Places for London partnership lands near Heathrow Airport with a week of free charging
Major milestone as new 12-bay ultra-rapid Electric Vehicle (EV) charging hub opens at Hatton Cross, the first of 25 planned to open across London by the Places for London and Fastned partnership Taxis, cars and commercial vehicles benefiting from easier ultra-rapid 24/7 charging, powered entirely by 100 per cent renewable energy, with toilet facilities, extra wide bays and two fully accessible charging spaces to ensure EV charging is sustainable and accessible for everyone To celebrate the official opening, the Hatton Cross charging hub will offer five days (a ‘working week’) of free charging from Monday 15 June to Friday 19 June 2026 The Fastned and Places for London partnership has officially opened its first state-of-the-art ultra-rapid electric vehicle (EV) charging hub at Hatton Cross Underground station, marking a major milestone for London’s green transport infrastructure. Launched by Seb Dance (Deputy Mayor for Transport), Mete Coban MBE (Deputy Mayor for Environment and Energy), and Andy Lord (London’s Transport Commissioner), alongside Fastned Co-founder and CEO Michiel Langezaal and Fastned UK Director Tom Hurst, the event also featured a zero-emission capable black cab, ambulance, and TfL van, showcasing the growing range of electric fleet capability now available. To celebrate the official opening, the new Hatton Cross charging hub will offer five days of free charging, from Monday 15 June to Friday 19 June 2026. Drivers just need to turn up, authorise their charge with their normal payment method and then enjoy free charging on Fastned. The new EV hub, part of work to deliver on the Mayor’s manifesto target of up to 40,000 charge points in London by 2030, is the first of 25 planned to be delivered across London by the partnership, has been designed with accessibility and comfort in mind. It includes extra-wide bays and two fully accessible charging spaces in line with the latest British Standards Institution guidance, alongside weather protection provided by Fastned’s signature yellow solar canopies. The hub also has CCTV coverage throughout the site and 24/7 multilingual customer support, ensuring a safe, easy and enjoyable experience for all users. Open 24/7 and powered entirely by renewable energy, the hub features 12 ultra-rapid (400kW) charging bays, capable of delivering up to 100 miles (around 160 kilometres) of range in just five minutes. It is strategically located within easy access to Heathrow Airport, the M25, M4 and A30, making it a convenient stop for airport commuters, residents, taxi and private hire drivers, and business fleets. Many drivers, particularly in London, depend on public charging, with the UK having around 2 million battery electric vehicles on the roads now, and around 40 per cent of UK households lacking off-street parking. Designed for vehicles of all sizes, from cars and taxis to vans and smaller commercial vehicles, the hub helps tackle London’s space constraints, providing a welcome option where home or depot charging is not available. The capital leads the way in EV uptake nationally, with more than 175,000 battery electric cars and vans already registered in the capital. EV numbers on the road in London are projected to reach to over 1 million by 2030, making up to 36 per cent of London’s car and van fleet. This hub contributes directly to 2030 forecasts for EV infrastructure and marks a tipping point for London as over half of the high-powered chargers needed by the end of the decade have now been delivered. The partnership aims to make ultra-fast charging more accessible by creating a city-wide network of hubs which are thoughtfully designed for all users, with planning already in place for a flagship 36-bay location at Hanger Lane and an 8-bay hub at East Finchley Underground station car park. Three other sites are within the planning process across Newham, Haringey, and Barking and Dagenham, with a further seven sites due to be submitted for borough review by the end of the year. Alongside accessible charging, every site will also deliver community benefits, with a share of revenue supporting local projects and climate initiatives. The partnership is also dedicated to tackling the growing “green skills” gap, providing apprenticeships, work experience placements, and employment opportunities to help upskill Londoners and secure the future of the city’s green transition “Hatton Cross is a landmark moment for our joint venture with Places for London, and a major step in powering up the capital where it matters most. Positioned on a key route near Heathrow, this hub is built for constant movement and for the switch to electric to happen at pace. “With ultra-rapid charging, weather-protected bays and effortless access, this site is designed around people on the go. Whether you’re commuting, visiting, running a fleet or living with or without a driveway, we’re making charging simpler, faster and more reliable for everyone.”Tom Hurst, Fastned UK Country Director “Opening our first hub at Hatton Cross with Fastned shows what collaboration can achieve. This is a sustainable, inclusive infrastructure that drivers can rely on where it’s needed most. This is just the start of a city-wide network of ultra-rapid hubs, which sets a benchmark for future EV charging developments, supporting a cleaner, more sustainable transport network across the capital with Hatton Cross perfectly positioned to serve the high volumes of traffic around Heathrow in a safe and comfortable environment.” John Colgan, Places for London Electric Vehicle Charging Hubs Project Manager “The opening of this new charging hub is an important step in helping more Londoners switch to electric vehicles and play their part in tackling the climate crisis. As more people choose electric cars, vans and taxis, it’s vital that we provide the charging infrastructure needed to support them, reducing carbon emissions, improving air quality and supporting our transition to a net zero city. “This is the first of 25 new ultra-rapid charging hubs planned across London, helping make charging easier and more convenient, particularly for people who don’t have access to off-street parking. These new hubs also represent important progress towards delivering on the Mayor’s manifesto commitment to support the rollout of up to 40,000 electric vehicle charge points across London by 2030.
Multibillion-pound theme park will inspire youngsters to pursue construction careers, hopes Actis
The buzz surrounding the planned creation of a multibillion-pound theme park in Bedfordshire is to be used to encourage children to consider careers in the construction industry when they leave school. That’s the aim of insulation specialist Actis, a long-term champion of encouraging young people into the sector, often via outreach sessions in schools and colleges. And with developers Comcast NBCUniversal promising to provide training and apprenticeships via colleges and universities throughout the construction and resort phase, the development of the newly named Universal United Kingdom Resort should be good news for the wider construction industry, believes Actis. The US entertainment giant, which says it will invest an initial £5 billion into the resort and a further £1bn over its first decade, wants the theme park to become the most visited in Europe. It says the work will generate around 20,000 jobs during the construction period, with a further 8,000 created after its opening in 2031. The government will support the surrounding infrastructure development and transport links to the tune of £1.3 billion. Actis East and Scotland regional sales director, Steven Ellis, who lives near the planned theme park, is due to take part in a ‘careers and aspirations’ day at a village school literally a stone’s throw from the site in the coming weeks. He plans to reference the resort as an example of the kind of imaginative project open to those choosing a construction career path. “The popular appeal and glamour of a theme park is a tangible and exciting example of the kind of project likely to strike a chord with those still at school. I’m hoping it will give them a real passion to be involved in an industry which can bring so much joy to millions of people all over the world,” he said. “With the theme park’s creators predicting there will be 8.5 million visitors a year initially, rising to 12 million within 20 years of opening, the magnitude of the resort points to a great need for skilled tradespeople and apprentices. “These will be required to work not only on the 476-acre theme park but also on the road and rail links being created and upgraded to allow access to the site. This is a career opportunity on their doorstep and I’m hoping they will share my enthusiasm!” Building, Design & Construction Magazine | The Choice of Industry Professionals
All homes sold at flagship Woodgate development
Woodgate, the award-winning 619-home development delivered through a joint venture between Thakeham and Abri, is now fully sold. Thakeham, one of the leading housebuilders in the south of England, has completed on the sale of the final private home at its flagship development in Pease Pottage, West Sussex. Delivered in partnership, Woodgate brings together a mix of private and affordable homes, with Thakeham leading on private sale and Abri providing a significant number of affordable homes to support local housing need. As well as the high-quality homes, the scheme features St Catherine’s Hospice and a community café run by JO.CO on its behalf, with all profits going towards the charity’s vital services. Other amenities at Woodgate include a community shop managed and operated by local residents with support from charity Plunkett UK and a state-of-the-art primary school. A large village green is at the heart of the development, while play areas, trails, pathways and cycle routes linking to the neighbouring 370-acre Tilgate Forest are spread throughout. Of the 619 homes at Woodgate, 186 are affordable, which is a 30% provision in line with local planning policy. This comes at a time of sustained demand for social housing locally, with more than 2,000 households currently on the Mid Sussex housing register, highlighting the continued pressure on the supply of affordable homes in the area. “The first new homes were completed in 2020 and the community at Woodgate is already thriving – you can feel a real buzz when you walk around. The residents of our private and affordable homes have created something special, and people are visiting Woodgate from the surrounding areas to use the facilities and soak in the atmosphere,” said Thakeham Sales Director, Emma Chamberlain. “The completion on this final home is a real milestone for us, and the former sales pavilion will soon be ready to hand over to the community to further ingrain the unique sense of community at this exceptional development.” Sally Ingham, Development Director at Abri said: “Woodgate shows what can be achieved when partners share a long-term vision for both homes and place. Working with Thakeham, we’ve helped create a thriving community with high-quality homes and facilities alongside green spaces that will continue to benefit everyone for years to come. Developments like this also support Abri’s wider investment strategy to deliver 20,000 new homes by 2036, helping to address the growing demand for affordable housing across our communities.” Building, Design & Construction Magazine | The Choice of Industry Professionals
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