At a glance
New data point to modest construction growth in 2026, with strengthening order books but persistent cost and delivery pressures.
Housing output remains weak despite policy pushes, while the Universal UK theme park edges towards site mobilisation under its new planning powers.
Road and rail pipelines are diverging, with parts of the highways programme under strain even as HS2 and RIS3 move ahead.
Energy transition infrastructure is gaining momentum, backed by around £80bn in planned investment and rapid EV charging rollout.
Major regulatory changes – from the Planning and Infrastructure Act to the Building Safety Regulator overhaul – will reshape project risk profiles through 2026.
Today’s update: forecasters see a cautiously improving workload picture for 2026, but against a backdrop of fragile housing delivery, patchy road investment and intensifying regulatory change. Energy, water and strategic transport look set to drive activity, while planning and building safety reforms start to bite. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of planning reform, the new Planning and Infrastructure Act has now been enacted, locking in faster judicial reviews and procurement rule changes that project teams will need to embed into live and upcoming schemes. (Source: PBC Today)
Building safety reforms continue to evolve, with the Building Safety Regulator due to be restructured on 27 January 2026 and the Building Safety Levy starting on 1 October, sharpening cost and compliance planning for higher-risk residential projects first highlighted in recent editions. (Source: Liz Male Consultancy)
Top 5 Headlines
💰 UK construction heads into 2026 with cautious growth and rising order books
Recent sector analyses indicate UK construction output grew around 1.1% in 2025 and is forecast to rise by 2.8% in 2026, with roughly a third of firms expecting expansion. Tender prices climbed 0.7% between Q3 and Q4 2025, confirming continued cost pressure, while new orders were up nearly 30% year-on-year in Q3 2025. The outlook is strongest in energy, water and roads, although parts of the infrastructure market are seeing weak demand and selected project cancellations. For contractors and clients, this points to a more active 2026 pipeline but with squeezed margins and a premium on cost control and delivery discipline. (Source: Tokio Marine HCC, Pinsent Masons, FM Industry)
🏗️ Universal UK theme park prepares to break ground after SDO comes into force
Work is set to start imminently on the Universal UK theme park following its Special Development Order coming into force on 12 January 2026. The scheme is expected to generate around 20,000 construction jobs and deliver a £50bn economic boost by 2055. With planning risk effectively cleared, attention now shifts to phasing, supply chain mobilisation and regional infrastructure interfaces around the site. The project will be a major multi-year workload anchor for civils, structures and specialist leisure contractors. (Source: Blooloop)
🚆 HS2 and RIS3 push on as some road schemes fall away
HS2 continues to advance, with civil engineering, track laying and station works – including at Euston – progressing largely under the radar. In highways, National Highways is preparing to deliver the £24bn third Road Investment Strategy for 2026–31, while the Lower Thames Crossing awaits a private finance settlement. However, funding pressures have led to the cancellation of some road projects, hitting bitumen and asphalt demand. The divergence between strategic schemes proceeding and local or marginal schemes being cut will shape workload distribution across the transport supply chain. (Source: Argus Media, Pinsent Masons)
🌱 Energy transition programme accelerates but grid remains a choke point
Policy and planning changes are expected to unlock new onshore wind capacity, while battery storage and small modular reactor programmes are moving forward under the National Infrastructure Strategy’s c.£80bn energy allocation over the next eight years. Electric vehicle charging points reached 56,726 by the end of 2025, a 26% year-on-year increase, signalling rapid growth in associated civils and M&E work. Yet grid connectivity is emerging as a critical constraint on bringing new generation and storage projects online. Developers and contractors will need to build grid risk and sequencing into commercial and programme strategies. (Source: Pinsent Masons, Argus Media)
🏛️ New Planning and Infrastructure Act and 10-Year Infrastructure Strategy reset the rules
The Planning and Infrastructure Act, which came into force on 18 December 2025, introduces faster judicial reviews for infrastructure schemes and overhauls procurement with measures such as a central debarment list and prompt payment terms. In parallel, the government’s 10-Year Infrastructure Strategy commits at least £725bn to transport, energy, health, education and clean energy projects, supported by more than 50 policy and standards initiatives ranging from mandatory net-zero transition plans to embodied carbon reporting. Returning today, this policy package will materially affect bid strategies, risk allocation and design choices across major programmes. (Source: PBC Today, Liz Male Consultancy)
🏛️ Building Safety Regulator overhaul and levy confirm long-term cost shift
The Building Safety Regulator will be restructured from 27 January 2026, ahead of the Building Safety Levy’s commencement on 1 October 2026. Alongside wider safety reforms, the changes will alter approval pathways and add a new cost line for higher-risk residential and certain other developments. For developers, investors and contractors, longer lead times for compliance and higher upfront cash requirements will need to be factored into viability assessments and phasing. (Source: PBC Today, Liz Male Consultancy)
Also in the news
🏗️ Housing output remains subdued, with Q1 2025 completions at a decade-low 39,000 and ongoing government efforts to mandate higher delivery yet to translate into a material uplift. (Source: Pinsent Masons)
⚙️ Contractors report optimism around government-backed infrastructure programmes but continue to face financial pressures and procurement hurdles that are constraining some investment decisions. (Source: Tokio Marine HCC, Pinsent Masons)
🚆 A structural road life survey shows more than half of local roads in England and Wales have fewer than 15 years of life remaining, highlighting mounting maintenance and renewal demand for local authorities. (Source: Argus Media)
🌱 Grid connectivity delays continue to hold back some energy and storage schemes despite significant capital being earmarked under the National Infrastructure Strategy. (Source: Argus Media)
💰 Entries and registrations have opened across multiple 2026 industry awards – including Digital Construction, Construction News, RICS, BREEAM and MMC awards – signalling ongoing focus on innovation, ESG performance and industrialised construction. (Source: Construction Management, Construction News, RICS, BREEAM)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline. If this briefing is useful, consider forwarding it to your commercial, planning or delivery teams.