At a glance
⚙️ UK construction output is shrinking at its fastest rate in more than five years, with housing and civils driving the downturn as political and economic uncertainty bites. (Source: Agg-Net)
🏗️ Trafford Council has launched a £175m contractor tender for the Stretford Mall regeneration, targeting 630 homes and a major reconfiguration of retail floorspace. (Source: Place North West)
🏗️ A separate 69-home scheme is proposed in nearby Sale, underscoring continued residential densification pressure across Greater Manchester. (Source: Place North West)
🌱 Government has unveiled an Energy Resilience Strategy and plans for AI “Growth Zones”, signalling stepped-up intervention in grid resilience and connections. (Source: GOV.UK)
Today’s update: fresh data confirms a sharp contraction in UK construction activity, led by housing and civils, just as councils and central government push ahead with regeneration and energy resilience agendas. Strategic schemes in Greater Manchester and the grid are moving forward against a backdrop of delayed project releases, thin awards pipelines and looming regulatory change. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of pressures on the £530bn national pipeline, the latest S&P Global Construction PMI reading of 44.1 shows those risks materialising in real-time, with client spending restraint now feeding through into steep output falls in housing and civil engineering. (Source: Agg-Net)
Building on recent policy moves to accelerate infrastructure and onshore wind, the government’s new Energy Resilience Strategy adds a security and reliability dimension, alongside targeted grid access measures for AI data centres and updated National Policy Statements. (Source: GOV.UK)
The 2025 Construction Industrial Strategy, previously flagged as a core plank of the sector’s future, reappears today as a reminder that BIM adoption, skills and housing delivery reforms are intended to sit alongside, not replace, the emerging planning and infrastructure law changes. (Source: HBF)
Top 5 headlines
⚙️ UK construction contracts at fastest pace in over five years
The S&P Global UK Construction PMI for October 2025 came in at 44.1, signalling a marked contraction in sector activity and extending the current downturn. The fall is being driven by steep declines in housing and civil engineering work, as delayed project releases and cautious client spending reflect wider economic and political uncertainty. Commercial construction is proving more resilient but not enough to offset the drag from other segments. For contractors and the supply chain, this deepens workload visibility risks into 2026 and will sharpen competition for viable schemes. (Source: Agg-Net)
🏗️ Trafford launches £175m Stretford Mall housing-led regeneration tender
Trafford Council has issued a £175m tender for contractors to deliver 630 homes as part of the Stretford Mall regeneration, which will see much of the existing retail space demolished and reconfigured. The first £60m phase is expected to deliver 249 homes from mid‑2027, with the procurement running to a 12 January 2026 bid deadline and an award decision targeted for March. The contract signals a sizable pipeline anchor for residential and mixed-use delivery teams in Greater Manchester at a time when private housing work is under pressure. (Source: Place North West)
🏗️ 69-flat scheme proposed in Sale as Greater Manchester intensification continues
In Sale, Ropley Properties has submitted outline plans for a six‑storey block comprising 69 flats, with the proposal now awaiting Trafford Council’s determination. The scheme would add to ongoing densification around town centres in the borough, following other recent residential applications. For designers, contractors and investors, it illustrates that localised demand pockets and brownfield opportunities persist even as the wider housing market softens. (Source: Place North West)
🌱 Government unveils Energy Resilience Strategy and AI grid access measures
The UK government has set out a new Energy Resilience Strategy aimed at protecting critical energy infrastructure from climate, cyber and geopolitical threats, including enhanced maintenance regimes, closer industry coordination and safeguards against widespread outages following incidents such as the Hyde substation fire. In parallel, ministers are moving ahead with plans to improve grid access for AI data centres through designated “AI Growth Zones” offering discounted electricity and faster connections. Updates to National Policy Statements will also re‑embed onshore wind in the planning framework to help reach 27‑29GW of capacity by 2030. The package opens up investment in energy networks and generation while putting resilience and digital demand firmly on the project-planning agenda. (Source: GOV.UK)
🏛️ Construction Industrial Strategy and 2026 reforms move in the background
Although there were no new domestic construction policy announcements on 10–11 December, the government’s 2025 Construction Industrial Strategy continues to shape the medium-term agenda around BIM adoption, skills and housing delivery. Major regulatory shifts expected in 2026 on housing supply, building safety and planning reform are being developed alongside this, with further detail anticipated over the coming year. For project sponsors and contractors, the message is to plan for a tighter, more digital and more safety‑focused compliance environment, even while immediate market conditions remain challenging. (Sources: HBF, GOV.UK)
💰 Awards season highlights resilient infrastructure pipeline, not new work
No new major infrastructure contract awards were recorded on 10–11 December, but schemes such as East West Rail Phase 2 and the Silvertown Tunnel have featured prominently among 2025 award winners and shortlists. Transport, flood alleviation and digital infrastructure projects continue to dominate the honours at events including the British Construction & Infrastructure Awards and ICE regional awards. The focus on existing flagship projects underlines that recognition and lessons‑learned are flowing, even as the flow of fresh commissions remains relatively subdued. (Source: BCIA)
Also in the news
⚙️ Analysts note that commercial construction is currently the most resilient subsector within the UK market, partly offsetting sharp housing and civils declines but leaving overall output firmly in contraction territory. (Source: Agg-Net)
🏗️ London housing commentators report that, despite a new mansion tax and supply constraints, investor appetite persists, with around 3,000 new-home completions forecast for 2027–28. (Source: Place North West)
🏛️ Policy-watchers expect 2026 to bring significant reforms spanning building safety, planning and housing delivery, adding further complexity to project approvals and compliance strategies. (Source: HBF)
🚆 Recent award shortlists and wins for flood schemes and digital infrastructure indicate continued institutional backing for resilience and connectivity projects despite a quieter near-term awards calendar. (Source: BCIA)
🌱 The reintroduction of onshore wind into updated National Policy Statements is being positioned as central to achieving 27–29GW of capacity by 2030, with implications for site selection, grid interfaces and local engagement. (Source: GOV.UK)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from boardrooms to site offices. If today’s briefing is useful, consider forwarding it to colleagues who are planning 2026–27 workloads and investment decisions.