At a Glance
🏗️ UK construction output is near a three‑year high, with infrastructure work up 5.5% year‑on‑year but constrained by labour and skills gaps. (Source: Construction Leadership Council / ONS / Arcadis)
🚆 Treasury‑backed plans to extend the DLR to Thamesmead advance alongside wider moves to cut transport infrastructure costs by up to 50%. (Source: London Assembly, Railway‑News)
🌱 Government confirms updated National Policy Statements targeting at least 95% clean power by 2030 and faster deployment of hydrogen and CCS infrastructure. (Source: gov.uk)
🏗️ New data highlights more than 4,300 consented homes stalled in Reading amid fresh measures to cut housing transaction costs and delays. (Source: UK Property Forums, MarketScreener)
🌱 Government is investing £500m in Landscape Recovery Projects as part of a push on “nature infrastructure” for climate resilience and local economies. (Source: Natural England)
Today’s update: the latest data shows infrastructure‑led growth in construction colliding with skills shortages and a sizeable backlog of consented but unbuilt homes, while ministers lean on planning reforms and new National Policy Statements to accelerate clean power and major schemes. Transport‑led regeneration, grid reform for AI and nature‑based investment are all becoming part of the same delivery conversation. Here’s what you need to know to stay ahead today.
Ongoing Stories
🚆 Following earlier coverage of the DLR Thamesmead extension as a Budget‑linked regeneration lever, today’s material underlines its role within a wider push to halve transport project costs and shorten consenting times, reinforcing its significance for east London housing and rail supply chains. (Source: London Assembly, Railway‑News)
🏛️ Building on recent reporting around planning and infrastructure reform, the updated 2025 National Policy Statements add clearer backing for renewables, nuclear and low‑carbon infrastructure, signalling how central government intends to operationalise its faster‑consenting ambitions. (Source: gov.uk)
⚙️ The earlier warning that the £530bn construction pipeline is “starting to crack” is echoed in new forecasts showing construction output price inflation of up to 6% for infrastructure in 2025, sharpening cost‑risk for clients and contractors. (Source: Construction Leadership Council / Arcadis)
Top 5 Headlines
⚙️ Infrastructure drives UK construction to near three‑year high
UK construction output has climbed close to a three‑year peak, underpinned by strong infrastructure activity that expanded 3.2% in Q2 2025 and is now 5.5% higher year‑on‑year. Public non‑housing new orders have risen 15% over the same period, and new work overall grew 1.1% in Q2, with private commercial and industrial projects also strengthening. Forecasts point to output price inflation of 2–4% for buildings and up to 6% for infrastructure, while labour shortages and skills gaps remain the key drag on delivery. For the sector, this combination of volume growth, cost pressure and constrained capacity heightens the premium on productivity, supply‑chain resilience and workforce development. (Source: Construction Leadership Council / ONS / Arcadis / Burges Salmon)
🏗️ 4,371 consented homes stalled in Reading as planning friction persists
Reading Borough Council has identified 4,371 homes with planning permission in place that have yet to start on site, highlighting a sizeable backlog of consented but unbuilt housing. The figures come as government pursues reforms to reduce housing sales costs and delays, with an ambition to save first‑time buyers around £710 on average through streamlined processes and practice changes. The juxtaposition of stalled delivery with transactional reform underscores that unlocking housing supply will require both planning certainty and stronger incentives or capacity to build out approvals. (Source: UK Property Forums, MarketScreener)
🏛️ Updated energy National Policy Statements set 95% clean power by 2030
Returning today in more detail, the government’s refreshed 2025 energy National Policy Statements reaffirm the goal for at least 95% of Great Britain’s electricity to come from clean sources by 2030 and net zero by 2050. EN‑3 has been updated to address offshore wind wake effects and brings onshore wind back into the Nationally Significant Infrastructure Projects regime, while EN‑1 continues to support nuclear and paves the way for a dedicated nuclear NPS for post‑2025 schemes. New planning provisions are also intended to speed deployment of hydrogen and carbon capture projects, aligned with the Sixth Carbon Budget’s 78% emissions‑reduction requirement by 2035. The package provides a clearer policy platform for investors and promoters of large‑scale renewables, nuclear and low‑carbon infrastructure, with implications for site selection, grid connections and consenting strategies. (Source: gov.uk, CCC, ISEP Global)
🚆 DLR Thamesmead extension advances amid cost‑cutting drive on transport projects
Returning today, Treasury‑backed plans to extend the Docklands Light Railway to Thamesmead are progressing as part of a wider programme to cut UK transport infrastructure costs by 20–50% through best‑practice adoption and clearer planning and funding timetables. London Assembly analysis suggests substantial savings are possible if London emulates delivery models seen in cities such as Madrid, while Budget decisions on the DLR scheme remain closely tied to unlocking up to 25,000 homes in Thamesmead. For rail, civils and development teams, the project exemplifies how central funding, local regeneration and cost‑reform agendas are converging on single corridor‑scale schemes. (Source: London Assembly, Railway‑News)
🌱 £500m Landscape Recovery programme builds “nature infrastructure”
The UK government is committing £500m to Landscape Recovery Projects designed to restore habitats, boost biodiversity and enhance climate resilience while supporting local economies. The initiative is framed as “critical nature infrastructure”, sitting alongside traditional grey infrastructure and aiming to integrate environmental outcomes into land‑use and regional investment decisions. This funding stream opens opportunities for multidisciplinary teams in environmental consultancy, civil engineering and rural development to shape large‑scale, long‑term landscape interventions that will increasingly intersect with transport, water and energy schemes. (Source: Natural England)
Also in the news
🏗️ A 102‑home scheme has been proposed at Chalfont St Giles with planning applications lodged, adding to the pipeline of edge‑of‑settlement residential development in the South East. (Source: UK Property Forums)
🏗️ Ealing Council has completed its most extensive conservation area review in 15 years, signalling tighter controls in heritage locations and potential implications for density, retrofit and viability. (Source: Planning Resource)
🏗️ Leadership moves include Charlie Clark joining Turnstone Estates as an associate and Neil Waterson becoming a director in Savills’ Cambridge planning team, reflecting ongoing senior churn in development advisory roles. (Source: UK Property Forums, MarketScreener)
🚆 Phase three of public consultation on the proposed Cambridgeshire Fens reservoir is nearing completion, marking another step for a major water‑infrastructure and regional regeneration project. (Source: UK Property Forums)
🌱 The AI Energy Council has met to discuss grid reform and self‑build energy solutions for AI and data‑centre infrastructure, with a focus on accelerating grid connections for power‑intensive digital assets. (Source: ANS, Enfield Dispatch)
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 bid, investment committee or project review, consider forwarding it to a colleague.