At a Glance
Residential asking prices recorded their largest-ever January rise, as lower mortgage rates lift sentiment and pricing power. (Source: Buy Association Group)
Government is lining up over £700m for hydrogen networks and repurposed gas pipelines, alongside £22bn for new offshore wind projects. (Source: Slaughter and May, Caliber)
Key 2026 regulatory milestones – Building Safety Act implementation and CIS reforms – will materially change compliance and cashflow for contractors and developers. (Source: Installer Online, GOV.UK)
Planning and devolution reforms are set to reshape how housing, NSIPs and local growth strategies are agreed and funded in England. (Source: Osborne Clarke, Clyde & Co)
Today’s update: a more optimistic construction growth forecast for 2026 is arriving alongside an unprecedented public infrastructure pipeline and a sharp rebound in housing market pricing. At the same time, the regulatory screws are tightening around safety, tax and planning, putting delivery risk and compliance at the centre of boardroom discussions. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of planning reforms and central intervention powers, the Planning and Infrastructure Act 2025 now gives legal effect to streamlined NSIP approvals, while fresh devolution proposals begin to reallocate housing and planning powers in England. (Sources: Osborne Clarke, Clyde & Co)
Building on recent focus on delivery risk and governance, the full 2026 implementation timetable for the Building Safety Act and the new independent Building Safety Regulator now clarifies when dutyholder, gateway and “golden thread” obligations will bite on schemes in design and delivery. (Sources: Installer Online, GOV.UK)
Returning to the theme of sector financial resilience, HMRC’s proposed Construction Industry Scheme simplifications add new administrative and penalty risks from April 2026, particularly around nil returns and verification, on top of existing cashflow pressures. (Sources: McCleary Accountants, GOV.UK)
Continuing the clean energy infrastructure narrative, new detail on hydrogen and offshore wind funding underscores that grid capacity and system upgrades, rather than project consent alone, are emerging as the critical bottleneck to meeting UK energy transition targets. (Sources: Slaughter and May, Caliber)
Top 5 Headlines
🏗️ UK construction set for 2.3% growth in 2026 on back of £725bn infrastructure strategy
Industry forecasts point to a 2.3% increase in UK construction output in 2026, supported by strong government capital spending, skills investment and a 10-year infrastructure strategy worth over £725bn. More than £150bn is planned for 2026/27 alone, with major programmes spanning transport, energy, health and social infrastructure. This trajectory suggests order books tied to public and regulated sectors will remain relatively robust even as private markets adjust. (Source: Infobric, PBC Today)
🚆 £24bn roads and £45bn rail programmes enter critical 2026 delivery phase
The Road Investment Strategy 3 for 2026‑31 is commencing with a £24bn package, while Network Rail moves into year two of a £45bn Control Period. Together these commitments frame a multi-year workload across highways renewals, enhancements and rail upgrades. For civils contractors and consultants, the focus now shifts from pipeline visibility to supply chain capacity, productivity and risk-sharing on complex programmes. (Source: PBC Today)
🌱 Hydrogen and offshore wind get combined £22bn+ boost amid grid constraints
Government has announced a £500m package for hydrogen infrastructure and green hydrogen production, backed by Ofgem’s £164m for Project Union to repurpose gas pipelines, while a separate £22bn allocation to new offshore wind projects aims to power 12m homes and create 7,000 jobs by 2030. However, limited grid capacity is already constraining the use of wind generation, prompting approval of a £28bn, five‑year plan for electricity and gas network upgrades. This funding mix strengthens the energy transition pipeline but also underlines that network and consenting risks will shape delivery timelines. (Sources: Slaughter and May, Caliber, Ofgem)
🏗️ Building Safety Act regime fully lands in 2026, reshaping project accountability
The remaining provisions of the Building Safety Act 2022 become fully operative in 2026, with the Building Safety Regulator standing up as an independent body from 27 January and “golden thread” documentation requirements enforced across higher-risk residential schemes. New dutyholder responsibilities and gateway controls will increase scrutiny at design and construction stages, with direct implications for professional indemnity, programme and cost. Firms now face a hard deadline to embed safety case thinking and data management into live projects. (Sources: Installer Online, GOV.UK)
🏛️ Devolution, planning reform and rent controls to reshape English property rules
The English Devolution and Community Empowerment Bill, now at House of Lords committee stage, proposes devolving elements of housing and planning policy to local strategic authorities while introducing a ban on upwards-only rent reviews in commercial leases. In parallel, the Planning and Infrastructure Act 2025 is set to streamline NSIP approvals, and consultations are live on spatial development strategies, London Plan housing guidance and business rates. This policy package points to a more locally tailored but more fragmented regulatory landscape that developers and investors will need to navigate scheme by scheme. (Sources: Clyde & Co, Osborne Clarke, Osborne Clarke, GOV.UK)
Also in the news
🏗️ UK residential asking prices jumped 2.8% month-on-month in January 2026 to an average £368,031, the largest January rise on record, as recent mortgage rate cuts ease affordability pressures and improve buyer sentiment. (Source: Buy Association Group)
🏗️ A new Building Safety Levy taking effect from 1 October 2026 will apply to residential developments of 10+ units, requiring developers to price the levy into land and viability assessments for schemes now entering planning. (Source: GTLAW)
💰 Proposed Construction Industry Scheme reforms from 6 April 2026 include exempting payments to local authorities, mandating nil returns unless pre‑notified and tightening penalties, signalling a tougher stance on compliance while aiming to reduce administrative friction. (Source: McCleary Accountants, GOV.UK)
🚆 HS2 continues to progress key civils milestones, with 2026 activity centred on final tunnel drives and major viaduct and bridge installations across the route. (Source: YouTube – HS2)
🌱 The UK has accelerated £20m of energy infrastructure support to Ukraine under a wider partnership agreement, underscoring the export and diplomatic role of UK expertise in grid and generation resilience. (Source: GOV.UK)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from boardrooms to site offices. If this briefing is useful for your next pipeline review or bid decision, consider forwarding it to your wider team.