At a Glance
Infrastructure is set to drive a cautious UK construction recovery in 2026, with forecast sector growth of 3.9% despite weak housing and commercial markets. (Source: ConstructionWave)
Government has proposed a new Greater Cambridge Development Corporation with wide-ranging regeneration and planning powers to accelerate homes, jobs and infrastructure. (Source: GOV.UK)
Construction materials demand remains stuck at very low levels after a four-year decline, with the Mineral Products Association warning of job losses and mothballed sites. (Source: Construction Management)
Industry leaders at Foresight Event 2026 set out the next wave of UK clean energy infrastructure needs, from hydrogen and next-gen nuclear to grid upgrades and carbon capture. (Source: Foresight Events)
Today’s update: data from early 2026 points to infrastructure-led growth against a backdrop of subdued housing, weak materials demand and rising build costs, particularly in London. At the same time, Whitehall is testing more interventionist planning tools in Greater Cambridge while the energy sector lines up the next decade of net-zero infrastructure. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of strain in the £530bn UK construction pipeline, fresh forecasts now show infrastructure as the main growth engine for 2026, even as housing and commercial markets lag and skills and productivity pressures persist. (Sources: Project Plant, ConstructionWave)
Returning to the theme of planning reform and central intervention, the proposed Greater Cambridge Development Corporation adds a concrete testbed for the stronger ministerial planning powers flagged in recent Planning and Infrastructure Bill discussions. (Sources: Mayer Brown, GOV.UK)
Building on this week’s focus on infrastructure delivery risks, the Foresight 2026 conference extends the debate into clean energy, highlighting that hydrogen, nuclear, offshore wind and grid modernisation will demand new delivery models alongside traditional rail and road megaprojects. (Sources: PBC Today, Foresight Events)
Top 5 Headlines
⚙️ Infrastructure-led recovery offers limited relief for wider construction market
New analysis points to a cautious UK construction recovery in 2026, with infrastructure output forecast to grow by 3.9% while housing and commercial sectors remain weak. The S&P Global UK Construction PMI shows the slowest decline in activity for seven months in January, suggesting the downturn may be bottoming out rather than reversing sharply. For contractors and consultants, pipelines will be increasingly skewed towards public and infrastructure work, with competition for viable private development remaining intense. (Source: ConstructionWave, Roofing Today)
⚙️ Costs up 3.6%: inflation and labour tighten the screw on UK delivery
UK construction costs are forecast to rise by 3.6% this year, outpacing the global average increase of 2.4% and reflecting ongoing uncertainty. In London, inflation is expected to sit around 3%, with labour shortages and intense competition pushing the market away from residential schemes towards commercial and public sector work. Rising input costs and constrained labour will force sharper value engineering and may delay marginal projects, even where demand exists. (Source: Building, AECOM)
⚙️ Four-year slump in core materials demand raises red flags
The Mineral Products Association reports that demand for core construction materials remains at very low levels following a four-year decline. The trade body warns that the downturn is threatening jobs and forcing some sites to be mothballed as order books thin. For clients, this signals potential fragility in key parts of the supply chain, with risks around capacity when demand returns. (Source: Construction Management)
🏛️ New Greater Cambridge development corporation proposed to fast-track growth
Returning today as a live test of Whitehall’s planning ambitions, government has proposed a dedicated development corporation for Greater Cambridge to accelerate delivery of jobs, homes and infrastructure. The body would act as a central regeneration and planning vehicle, building on around £400m of previous government investment in local transport, housing and innovation. If implemented with powers over major applications, it could materially change how strategic land and infrastructure deals are structured in one of England’s fastest-growing economic areas. (Source: GOV.UK, GOV.UK)
🌱 Foresight 2026 maps out next wave of UK clean energy infrastructure
The Foresight Event 2026 in Liverpool has gathered industry and policy leaders to debate the UK’s clean energy future, with a focus on scaling hydrogen, deploying next-generation nuclear, expanding renewables—particularly offshore wind—and modernising the grid. Carbon capture infrastructure is also in scope, aligning with the UK’s 10-Year Infrastructure Strategy and its £725bn planned funding envelope, including major rail and road programmes. For the supply chain, the agenda underscores that energy and associated networks will be central to major project opportunities through the 2030s. (Source: Foresight Events)
Also in the news
🏗️ A government consultation on the Greater Cambridge Development Corporation, including proposed powers to determine large-scale planning applications, is open for responses until 1 April 2026. (Source: GOV.UK)
🏗️ Early indications of rising planning application volumes across England suggest land supply could start to loosen, with implications for medium-term housing and commercial pipelines. (Source: Business South)
🏗️ Dacorum Borough Council has approved a new investment plan to deliver additional affordable homes, bolstering local authority-led housing delivery. (Source: Dacorum Borough Council)
🚆 Ongoing work under the UK’s 10-Year Infrastructure Strategy maintains a £725bn investment pipeline focused on major rail and road programmes alongside energy schemes. (Source: Foresight Events)
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, consider forwarding it to a colleague before your next project review or investment meeting.