At a glance
🏗️ Supreme Court reshapes JCT termination rights while the Planning and Infrastructure Act 2025 accelerates NSIP consents in England and Wales.
💰 Glenigan data shows a split market with non-residential starts rising but housing still sharply down year-on-year.
🏗️ Government outlines a £39bn decade-long social and affordable housing push alongside emergency measures on Section 106 homes.
🌱 EPC and decarbonisation rules are tightening, with new compliance deadlines looming for landlords and new combustion plant.
💰 Contractors head into 2026 on higher order books and a 3.2% annual growth forecast, despite weak near-term output.
Today’s update: contract law, planning and energy policy are all shifting at pace just as construction output softens and the housing market shows early signs of a price-led revival. The pipeline for infrastructure and social housing looks long and well-funded, but delivery will hinge on how quickly the sector can adapt to new regulation and uneven demand across segments. Here’s what you need to know to stay ahead today.
Ongoing Stories
🏛️ Following earlier coverage of planning reform, the now-enacted Planning and Infrastructure Act 2025 goes further by removing mandatory pre-application consultation for NSIPs and simplifying DCO amendments, promising materially faster approvals for major schemes. (Source: Osborne Clarke)
🏗️ Returning to the theme of legal change, January’s Supreme Court ruling reverses a Court of Appeal decision on JCT Design & Build termination rights, sharpening the focus on contract administration and exit strategies on live projects. (Source: Osborne Clarke)
🏛️ Building on previous updates around the Planning and Infrastructure Bill and building safety, the government is now signalling an October 2026 start for the Building Safety Levy on 10+ unit schemes, adding another line item to residential viability calculations. (Source: GTLaw)
Top 5 Headlines
🏗️ Supreme Court reshapes JCT termination landscape
The UK Supreme Court has overturned a Court of Appeal ruling that had restricted termination rights under JCT Design & Build contracts. The decision restores broader termination options for parties where contractual conditions are met, altering the risk balance around default and exit. For developers and contractors, this raises the stakes on drafting, administering and evidencing grounds for termination across JCT-based portfolios. (Source: Osborne Clarke)
🏛️ Planning and Infrastructure Act 2025 promises faster NSIP delivery
The Planning and Infrastructure Act 2025 introduces streamlined consents for Nationally Significant Infrastructure Projects in England and Wales, removing mandatory pre-application consultation and easing amendments to Development Consent Orders. The reforms are designed to compress timelines and reduce procedural friction for large energy, transport and water schemes. This could pull forward spend on major projects but will test promoters’ ability to manage stakeholder engagement without prescribed consultation stages. (Source: Osborne Clarke)
💰 Glenigan index shows housing drag versus non-residential rebound
Glenigan’s January 2026 Construction Index reports that sub-£100m projects rose 7% quarter-on-quarter in Q4 2025 but remain 7% down year-on-year. Residential starts fell a further 2% over the quarter and are 20% lower year-on-year, while non-residential starts grew 14% quarter-on-quarter and 7% annually; overall construction output slipped 1.3% in November despite 0.3% GDP growth. With industry bodies calling for stimulus to offset weak housing demand and investor caution, contractors may pivot more heavily toward commercial and public non-residential work in the near term. (Source: PBC Today, InsightDIY)
🏗️ £39bn decade-long social housing programme takes shape
The government’s January 2026 progress update on “Delivering a Decade of Renewal for Social and Affordable Housing” confirms a £39bn programme for 2026–2036, with bidding due to open from February. Up to £2.5bn in initial funding will be deployed alongside emergency measures to speed tenure changes on uncontracted Section 106 homes, with full rollout targeted by spring 2026. This sets up a substantial, long-duration pipeline for housing associations, local authorities and contractors, but competition for early awards is likely to be intense. (Source: GOV.UK)
🌱 EPC reforms and decarbonisation rules tighten for buildings
Government has published consultation outcomes on reforms to the Energy Performance of Buildings regime, including a new Home Energy Model due by October 2029. Residential rental properties will need to reach a minimum EPC rating of C by October 2030, while commercial landlords must comply with MEES rules barring the letting of F- or G-rated assets; new and refurbished combustion plant will require decarbonisation readiness reports from 28 February 2026. These changes bring long lead times but significant capex implications, and incomplete detail on future homes standards leaves design and investment decisions finely balanced. (Source: GOV.UK, Osborne Clarke)
💰 Contractors head into 2026 on stronger order books despite output dip
While official January 2026 ONS output data is still pending, recent figures show construction equipment imports up 4.5% in the first three quarters of 2025 versus 2024 and real-term construction growth of around 1.6% in 2025. Mace led the market last year with £3.18bn of work and the top 100 contractors collectively booked £47.3bn of contracts, up 22% year-on-year; forecasts point to average annual growth of 3.2% between 2026 and 2029, driven by infrastructure and renewables. The disconnect between soft short-term output and strong medium-term order books will influence pricing, capacity planning and recruitment decisions over the next 12–24 months. (Source: GSC Executives, Business Wire, Construction Equipment Association)
Also in the news
🏗️ Strabag’s Cascade Infrastructure has reached financial close on the £3bn Haweswater Aqueduct Resilience Programme, signalling investor appetite for long-term water infrastructure concession-style models. (Source: GSC Executives)
🏗️ McLaren Construction has secured a £229m Phase Two contract on Westminster’s Ebury Bridge regeneration, with the scheme navigating stringent Building Safety Regulator Gateway processes. (Source: GSC Executives)
🏗️ Rightmove reports a record January 2026 asking price jump to £368,031, up 2.8% month-on-month, as post-budget sentiment lifts but supply remains tight. (Source: Rightmove)
🏗️ RICS notes improving residential market sentiment entering 2026, with demand still outstripping available stock, reinforcing pressure on planning and delivery capacity. (Source: RICS via CoStar)
🚆 Government reiterates multi-year commitments to HS2, Hinkley Point C, offshore wind and RIS3 highways, within a £28bn annual investment envelope plus more than £50bn for AMP8 water upgrades. (Source: Business Wire, RICS)
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 colleagues who are planning bids, investment cases or delivery strategies this week.