At a glance
UK construction is expected to return to strong growth in 2026, with a £39bn pipeline of major project starts and public spending underpinning an 8% sector-wide rebound. (Sources: Construction Wave, Arcadis)
Seven proposed new towns and a new £16bn National Housing Bank aim to unlock more than 500,000 homes alongside a £1.5bn Cities Investment Fund for enabling infrastructure. (Sources: GOV.UK, Brickweaver)
Energy and grid infrastructure spend is accelerating, with a £600m National Wealth Fund deal for Eastern Green Link 4 and a £718bn national infrastructure pipeline, £365bn of it in energy. (Sources: MarketScreener, GOV.UK)
Regulatory change is intensifying, with new fire safety duties from 6 April, a live Construction Products Reform consultation and imminent leasehold reforms reshaping residential delivery. (Sources: DLUHC, Fountain Court)
Today’s update: the data emerging at the end of March point to a construction market pivoting from 2025 weakness into a 2026–35 investment upswing, anchored by a £718bn infrastructure pipeline and a £725bn 10‑year strategy. Housing, energy and water are in focus, with new funding vehicles and regulatory levers being lined up just as delivery risk and labour constraints tighten. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of the UK’s long-term pipeline strain, new 2026 market outlooks now quantify a £39bn near-term project start pipeline and confirm that civil engineering will lead the rebound, sharpening the focus on whether skills and delivery models can keep pace. (Sources: Construction Wave, Arcadis)
Building on recent planning reform moves, the latest DLUHC update and Construction Products Reform White Paper consultation show regulation widening from process and safety into full product oversight by 2027, increasing compliance complexity for contractors and suppliers. (Sources: DLUHC, Fountain Court)
Thamesmead, previously in the spotlight for the anticipated DLR extension, now reappears as one of seven proposed new towns, underlining how transport schemes and housing-led regeneration are being explicitly tied together in government’s growth narrative. (Source: GOV.UK)
Top 5 headlines
⚙️ Construction set for 8% rebound in 2026 on back of £39bn major project pipeline
New forecasts point to an 8% expansion in UK construction output in 2026 after a weak 2025, powered by public spending, lower interest rates and stronger household finances. Glenigan identifies a £39bn pipeline of the top 100 project starts this year, including £23.8bn in civil engineering, with flagship schemes such as the £10.2bn Lower Thames Crossing, the £3bn Haweswater Aqueduct Resilience Programme, the £1bn Project Reach digital rail upgrade and the £450m Crown Works Studios. Analysts expect momentum to build further into 2027 as energy and water infrastructure, including AMP8 investment, ramp up. This matters because it signals a turn in the cycle and a shift in workload mix towards complex, civils‑heavy programmes. (Sources: Construction Wave, Arcadis, ICE)
🏗️ National Housing Bank launches with up to £16bn to back 500,000+ homes
The National Housing Bank opened on 1 April with capacity of up to £16bn to support delivery of more than 500,000 homes nationwide. It is designed to work alongside the £1.5bn Cities Investment Fund, which lets mayors and local authorities finance enabling infrastructure such as utilities, schools and health facilities linked to housing growth. Coupled with leasehold reform capping ground rents at £250 a year and banning new leasehold flats, the package marks a structural change in how residential schemes are financed and structured. This matters because it could de‑risk infrastructure‑heavy housing projects while materially reshaping developer business models and tenure mix. (Sources: GOV.UK, Brickweaver, HomeOwners Alliance)
🏗️ Seven new towns proposed to kickstart housebuilding push
Government has outlined seven new towns, each targeting 10,000–40,000 homes, including Tempsford (Bedfordshire), Crews Hill & Chase Park (Enfield), Thamesmead (Greenwich) and Brabazon & West Innovation Arc (South Gloucestershire). The proposals sit within wider planning and housing reforms, including emergency planning routes for London schemes with at least 20% affordable housing and ongoing consultation on the New Towns programme. Deliverability will hinge on aligning transport, utilities and social infrastructure funding with accelerated planning decisions. This matters because the schemes represent multi‑decade pipelines for masterplanners, infrastructure providers and major housebuilders if policy support translates into timely consent and enabling works. (Source: GOV.UK)
🌱 £600m National Wealth Fund backing for 2GW Eastern Green Link 4 subsea cable
Iberdrola has secured £600m in National Wealth Fund financing for Eastern Green Link 4, a 2GW, 530km high‑voltage subsea interconnector between Scotland and England. EGL4 is expected to transmit enough clean electricity to power around 1.5 million homes and ease constraints on getting Scottish renewables to English demand centres. The project forms part of a broader government strategy prioritising grid reinforcement, clean energy storage and offshore wind supply chains within a £725bn 10‑year infrastructure plan. This matters because it illustrates how state capital is being used to de‑risk strategic grid projects that will drive civils, marine and cable manufacturing workloads. (Sources: MarketScreener, GOV.UK)
🚆 £718bn infrastructure pipeline confirms energy dominance and long-term workload
The latest UK Infrastructure Pipeline lists 734 projects worth £718bn over the next decade, with £365bn allocated to energy, alongside substantial commitments to nuclear (including Sizewell C), CO₂ transport and storage, and grid modernisation. The March 2026 Spring Statement and OBR outlook maintain broad support for infrastructure spend while warning that energy‑related inflation risks persist. With construction output still subdued after late‑2025 weakness, the pipeline offers visibility but also highlights the challenge of translating plans into timely delivery. This matters because the scale and sectoral skew of the pipeline will shape bidding strategies, regional capacity planning and investment in skills and technology across the supply chain. (Sources: GOV.UK, OBR, UK Finance)
Also in the news
🏛️ Planning and housing reforms from late March introduce higher planning fees, updated compulsory purchase rules and emergency routes for London affordable schemes, with no further policy shifts announced on 31 March or 1 April. (Source: DLUHC)
🏛️ Mandatory fire risk assessments and Personal Emergency Evacuation Plans for certain buildings come into force on 6 April 2026, with further fire‑safety‑related deadlines due in October, tightening compliance expectations for building owners and dutyholders. (Sources: DLUHC, Brickweaver)
🏛️ The Construction Products Reform White Paper consultation continues, with proposals for a national regulator to oversee all construction products by 2027, extending post‑Grenfell regulatory reach deep into supply chains. (Source: Fountain Court)
🌱 Ofgem has reduced the energy price cap by 7% from 1 April to 30 June 2026, bringing a typical dual‑fuel bill down to £1,641, reflecting lower wholesale prices and adjusted environmental levy treatment. (Source: Ofgem)
🌱 Preparatory work on the £1.3bn STEP fusion project is advancing under the UK Fusion Strategy, reinforcing expectations that fusion, alongside nuclear and renewables, will generate specialist long‑term construction demand. (Source: GOV.UK)
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 working on bids, investment cases or delivery planning this week.