At a Glance: Public infrastructure and affordable housing orders are propping up UK construction new orders despite a deepening slump in private housebuilding.
At a Glance: A £718bn National Infrastructure Pipeline and £24bn roads strategy are being aligned with new delivery units and planning reforms to accelerate schemes.
At a Glance: Energy market volatility and low gas storage are sharpening the focus on renewables, storage and security-of-supply projects.
At a Glance: Labour shortages, cost inflation and regulatory complexity are driving interest in MMC, AI and digital delivery models.
At a Glance: The 2026 Budget and ongoing planning reforms seek to unlock housing and infrastructure, but deployment of billions in local developer contributions is still lagging.
Today’s update: the UK construction market is being pulled in two directions – strengthening public infrastructure and affordable housing pipelines versus contracting private residential starts and persistent cost pressures. At the same time, government is layering a £718bn infrastructure pipeline and planning reforms on top of energy security measures and digitalisation initiatives. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of the Planning and Infrastructure Bill, today’s updates underline how the Bill and the refreshed National Planning Policy Framework are intended to speed approvals for NSIPs, higher-density housing around transport hubs and new water and energy infrastructure, while extending central government’s role in spatial strategies. (Source: UK Government)
Returning to the theme of pipeline resilience, the new £718bn National Infrastructure Pipeline and £30bn 10‑Year Strategy build on previously flagged delivery risks by pairing long-term capital commitments with a new infrastructure delivery unit aimed at unblocking consents. (Source: UK Government)
Energy security concerns highlighted recently continue today, with fresh data on oil and gas price spikes and the UK’s limited gas storage reinforcing calls to accelerate renewables, storage and selected North Sea projects such as Rosebank and Jackdaw. (Source: Innovation News Network)
Top 5 Headlines
⚙️ Public infrastructure orders surge 46% as private housing stalls
ONS and industry data show UK construction new orders up 12.6% year-on-year, driven by a 46% jump in public infrastructure work and 41% growth in public housing orders, even as private new housing starts fell 22% in the three months to February 2026. The UK Construction PMI sat at 44.5 in February, signalling overall contraction, with residential activity particularly weak at 37.0. Labour shortages and persistent materials inflation are keeping tender price forecasts for 2026 elevated at 3.45%, despite hopes for output growth later in the year as pipeline schemes convert. For contractors and suppliers, this points to stronger opportunity in public and infrastructure frameworks while risk remains acute on speculative and private residential work. (Source: Pinsent Masons; ONS)
🚆 £718bn National Infrastructure Pipeline sets decade-long workload
Government’s updated National Infrastructure Pipeline outlines 734 projects worth £718bn over the next 10 years across transport, energy, water, digital and housing infrastructure. A new infrastructure delivery unit has been created to fast‑track planning and consents, with priority schemes including the Lower Thames Crossing, new reservoirs such as Havant Thicket, smaller nuclear projects and broadband upgrades under Project Gigabit. Returning today, this reinforces that delivery capability, rather than a lack of projects, will be the primary constraint for consultants and contractors planning resource and investment strategies. (Source: UK Government)
🚆 Highways England activates £24bn RIS3 roads programme
Highways England has begun delivering its third Road Investment Strategy (RIS3) with a £24bn budget for 2025–2030. The programme will focus on strategic network upgrades, renewals and safety improvements, aligning with the wider National Infrastructure Pipeline. This creates a substantial, multi‑year workload for highways contractors, designers and supply chains, though delivery will need to navigate skills shortages and inflation to maintain value for money. (Source: Pinsent Masons)
🌱 Over £130bn in regulated utility and energy projects up for grabs
Water companies are preparing more than £50bn of investment for AMP8 (2025–2030), targeting new reservoirs and network upgrades, while an estimated £80bn of investable energy projects over eight years is emerging, driven by onshore wind and battery storage policies. These regulated and policy‑backed programmes are expanding as part of government’s 10‑year infrastructure and energy security strategies. For investors and delivery partners, the combination of water and clean energy pipelines offers long‑duration visibility, but also heightens scrutiny on environmental performance and outcomes. (Source: Pinsent Masons)
🏛️ 2026 Budget and planning reforms zero in on housing and infrastructure-led growth
The 2026 Budget package emphasises planning efficiency, affordable housing delivery and infrastructure‑led growth, dovetailing with the Planning and Infrastructure Bill and proposed NPPF reforms to speed approvals, support higher‑density homes near rail stations and relax some Green Belt restrictions. Homes England figures show 38,308 housing starts and 36,872 completions in 2024‑25, with 79% classed as affordable and social rent starts up 43% year-on-year. For developers and local authorities, the direction of travel is towards higher output in affordable and transport-linked schemes, though translating policy into quicker consents on the ground remains the key test. (Source: UK Government; Black Brick)
🌱 Energy price shock accelerates UK renewables and security push
Recent Middle East conflict has pushed Brent crude to $119.50/barrel and UK gas prices to 134.72p/therm before partial correction, with the UK’s gas storage capacity at just 1.5 days of supply and Norwegian pipelines helping dampen wider European spikes. Government is responding by accelerating onshore wind auctions, solar deployment, heat pump incentives and the Warm Homes Plan, while industry groups urge fast‑tracking of Rosebank and Jackdaw to protect energy‑intensive manufacturing. This environment is likely to pull forward investment decisions on renewables, storage, efficiency retrofits and grid upgrades, while keeping cost pressure on construction materials and operations. (Source: Innovation News Network; Smart Energy UK)
Also in the news
🏗️ Local authorities in England and Wales are holding over £9bn in unspent developer contributions (CIL and Section 106), highlighting significant latent funding for local infrastructure that has yet to translate into on‑site delivery. (Source: Brookbanks)
🏗️ RICS reports early 2026 signs of a housing market bounce‑back, with prices and rents rising particularly in North East England, even as national private housing starts remain subdued. (Source: RICS)
🏗️ Prime London residential markets remain active, with deals such as a £50m+ Bayswater penthouse underscoring the divergence between high‑end demand and broader affordability‑constrained segments. (Source: Black Brick)
⚙️ MMC and digital construction are gaining traction as responses to an anticipated 240,000 construction labour shortfall by 2029, with UK Construction Week London set to launch a Contech and AI Hub in May. (Source: UK Construction Week; BDC Magazine)
⚙️ Data centre expansion driven by cloud and AI workloads is reshaping UK engineering demand, adding pressure on power, land and skills in key regions. (Source: AECOM)
The Daily Build is written for people shaping the UK’s built environment, from boardrooms to site cabins. If this briefing is useful, consider forwarding it to colleagues preparing bids, investment cases or delivery plans this week.