At a glance
🏗️ New Glenigan data shows Q4 project starts stabilising below 2024 levels, with residential still sharply down but non-residential improving.
💰 Construction downturn eased in December but the sector remained in deep contraction, even as expectations for 2026 strengthen.
🏛️ The Planning and Infrastructure Act 2025 has now become law, with staged commencement of powers to accelerate housing and infrastructure delivery.
🌱 Government has brought a new renewable energy National Policy Statement into force and is consulting on PPAs and data-centre connections to unlock net zero investment.
🚆 London leaders warn that key transport extensions must move forward to hit housing targets, underscoring the link between infrastructure and supply.
Today’s update: new market and workload data for late 2025 confirm a sector still under pressure but with pockets of resilience and clear expectations that utilities, digital and energy-transition work will lead any recovery. At the same time, Whitehall is hardening its toolkit with the Planning and Infrastructure Act, fresh energy policy statements and targeted reforms around grid and broadband connections. Here’s what you need to know to stay ahead today.
Ongoing Stories
🏛️ Following earlier coverage of the Planning and Infrastructure Bill, the legislation has now received Royal Assent as the Planning and Infrastructure Act 2025, with phased implementation from December and further provisions due in February and April 2026 that will materially change timelines and risks on major housing, transport and energy schemes. (Source: CIHT)
🚆 Returning to the theme of London transport as a housing enabler, the Deputy Mayor is now explicitly tying the Bakerloo Line extension, West London Orbital and DLR expansion to meeting housing targets, signalling growing political pressure to advance these corridors after recent Budget speculation around DLR Thamesmead. (Source: TTA Linea)
🌱 Building on previous analysis of clean energy planning reforms, the new National Policy Statement for Renewable Energy Infrastructure (EN‑3, 2025) is now in force and will frame consenting risk for nationally significant renewable schemes coming forward in 2026 and beyond. (Source: Gov.uk)
Top 5 headlines
🏗️ Glenigan index shows non-resilience as housing starts slide into 2026
The January 2026 Glenigan Construction Index reports that project starts under £100m rose 7% in Q4 2025 but remain 7% below 2024 levels. Residential starts fell a further 2% quarter-on-quarter and are down 20% year-on-year, while non-residential starts climbed 14% over the quarter and 7% annually. Glenigan expects government funding in housebuilding, infrastructure and capital projects to be a key support in 2026, highlighting a diverging market where housing lags but public and non-res work underpin pipelines. (Source: PBC Today)
💰 Construction downturn eases but 2025 ends in deep contraction
Latest market analysis shows UK construction remained in severe downturn at the end of 2025, with further declines in new orders in December although the rate of fall softened. Housing and commercial sectors are seeing the steepest drops, but confidence is edging up, with 37% of firms expecting output to rise in 2026 versus 20% forecasting a decline. Utilities, digital infrastructure and energy-transition projects are identified as likely growth drivers, indicating where contractors and investors may find more resilient workloads. (Source: Scottish Construction Now, Linesight)
🏗️ December PMI and insolvency data underline fragile conditions
The UK Construction PMI for December improved marginally to 40.1 from 39.4 but stayed firmly in contraction, with weak demand and project delays offset by a five‑month high in business optimism and one third of firms expecting 2026 growth. At the same time, 20 construction firms entered administration in December, the highest monthly figure since 2022, taking total 2025 failures to 286, while new home planning permissions fell to a 15‑year low of 42,000 in Q3 2025, down 31% year‑on‑year and hitting London hardest. The combination of subdued demand, rising failures and shrinking permissions suggests capacity and viability will remain critical risks through the next bidding cycle. (Source: PBC Today, TTA Linea)
🏛️ Planning and Infrastructure Act 2025 starts to bite
Returning today as an enacted law, the Planning and Infrastructure Act 2025 introduces reforms to speed delivery of housing and infrastructure, including a new Nature Restoration Fund, tighter limits on legal challenges, streamlined EV charger approvals and eased land acquisition powers. Initial provisions commenced on 19 December 2025, with further elements due in February and April 2026. Sponsors and local authorities will need to map commencement dates carefully as the Act reshapes consent risk, land strategies and programme assumptions on live and upcoming schemes. (Source: CIHT)
🌱 Grid and renewables policy sharpen focus on net zero delivery risks
A new National Policy Statement for Renewable Energy Infrastructure (EN‑3, 2025) is now in force for England and Wales, while the government has issued a call for evidence on corporate and private‑wire PPAs and is consulting on extending Ofgem’s Project Connections Facilitation to demand projects such as data centres. Alongside the AI Growth Zones policy paper, which designates data centres as critical infrastructure with accelerated grid connections, these moves aim to unclog the connections queue and de‑risk revenue models for low‑carbon investment. For developers across renewables, storage and digital infrastructure, the evolving policy framework may open routes to faster grid access but will require close attention to new eligibility and prioritisation rules. (Source: Gov.uk, Gov.uk, Hogan Lovells, Baker McKenzie)
Also in the news
🚆 London’s Deputy Mayor has reiterated that the Bakerloo Line extension, West London Orbital and further DLR expansion are essential to unlocking housing capacity, increasing pressure for funding and approvals on these corridors. (Source: TTA Linea)
🚆 The Dogger Bank South offshore wind farms have had their statutory decision deadline extended beyond 10 January, signalling heightened scrutiny and potential timetable risk for one of the UK’s flagship renewable projects. (Source: PolicyMogul)
🌱 Commentators warn that 2026 will test the UK’s fiscal and political capacity to deliver net zero, with grid reforms and CfD allocation pressures challenging the pace of renewables deployment. (Source: Inspiratia)
🚆 Project Gigabit’s January 2026 National Rolling Open Market Review has launched, beginning a triannual three‑year look‑ahead on gigabit coverage gaps to inform future broadband investment and subsidy decisions. (Source: Gov.uk)
🌱 Energy Security & Green Infrastructure Week (13–15 January) is convening industry and government around net zero, renewables, nuclear, CCS and heat networks, offering insight into the policy and funding direction for green infrastructure programmes. (Source: UKCCSRC, Green Infrastructure Week)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from strategy reviews to site logistics. If this briefing is useful, consider forwarding it to a colleague preparing bids or investment cases this week.