At a Glance
⚙️ Ferrovial has secured an £80m upgrade contract for Slough Sewage Treatment Works, reinforcing investment in UK water resilience.
⚙️ Kier has added a new sustainability director as it beds in its recently launched infrastructure division.
⚙️ UK construction PMI rose to 46.4 in January 2026, signalling the slowest contraction in seven months but with intensifying cost pressures.
🏗️ Housing starts and approvals have fallen sharply even as modest price growth returns, highlighting ongoing strain in residential delivery.
🏛️ New planning and infrastructure reforms, plus rising grid charges, are set to reshape the economics and timing of major schemes from 18 February.
Today’s update: early 2026 data point to a construction market edging towards stabilisation while policy, regulation and energy costs shift around it. Water, digital and clean energy infrastructure are drawing fresh investment and reform just as housing delivery indicators flash red. Here’s what you need to know to stay ahead today.
Ongoing Stories
🏛️ Following earlier coverage of the Planning and Infrastructure Bill, the Planning and Infrastructure Act 2025 now comes into force on 18 February 2026, introducing tools such as a one-year extension for permissions affected by judicial review to reduce delay and litigation risk. (Source: Linklaters)
🏛️ Building on previous reporting around planning reform as a lever for housing delivery, the government’s latest NPPF consultation is being challenged by Propertymark, which argues that wider measures on local authority capacity and skills are needed to tackle the housing crisis. (Source: Today’s Conveyancer)
Top 5 Headlines
⚙️ Ferrovial lands £80m Thames Water upgrade at Slough
Ferrovial has won an £80m contract to upgrade Slough Sewage Treatment Works for Thames Water, with works due to start around early 2027. The scheme will increase wastewater treatment capacity and improve storm flow management, strengthening local environmental resilience. For contractors and suppliers, it reinforces the scale and longevity of the UK water infrastructure programme as utilities respond to regulatory and climate pressures. (Source: Ferrovial)
⚙️ Construction downturn eases, but costs bite harder
The UK construction PMI rose to 46.4 in January 2026, the highest in seven months and indicating the slowest contraction since mid‑2025, alongside the strongest business optimism since May 2025. However, firms are reporting intensifying cost pressures from wages and materials, even as workloads show tentative signs of stabilising. Project teams may find tender pricing and risk allowances under renewed pressure despite a more optimistic outlook. (Source: Investing.com; Libra Construction)
🏗️ Housing starts slide as NPPF reform consultation gathers pace
Early‑February market data show UK house prices edging up 0.3% in January 2026, driven mainly by affordability improvements in northern regions, while London continues to struggle with high prices and mortgage volatility. At the same time, new residential construction starts have fallen sharply, with a 24% quarterly drop, housing approvals and groundwork volumes also down, even as non‑residential starts rose 6%. Returning today, the government’s NPPF consultation is framed as a route to faster housing delivery, but Propertymark warns planning reform alone will not resolve systemic constraints around local authority resource and sector skills. (Source: Brick Weaver; House-builder.co.uk; Today’s Conveyancer)
🏛️ Planning and Infrastructure Act 2025 takes effect, with focus on delay reduction
Returning today in more concrete form, the Planning and Infrastructure Act 2025 comes into force on 18 February 2026, including a one‑year extension for planning permissions that become entangled in judicial review. The legislation aims to curb delay and reduce litigation risk on affected schemes, while wider consultations are seeking to streamline digital and energy infrastructure deployment. Developers, promoters and funders will need to factor in these new timelines and procedural protections when programming complex projects. (Source: Linklaters)
🌱 Grid charges to jump 64% as renewables and CfD funding ramp up
Transmission network use of system charges (TNUoS) are set to rise by 64% from April 2026 to support grid upgrades needed for increased renewable generation. This comes as the 2026 Contracts for Difference auction has secured record funding for offshore wind projects, albeit at higher strike prices than previous rounds, and as longer‑dated energy contracts are expected to remain relatively stable amid increased LNG supply. The combination will reshape project economics for generators, large energy users and developers, with higher network costs offset by stronger policy‑backed revenue streams for low‑carbon assets. (Source: EDF Energy)
🌱 UK–California MoU deepens transatlantic clean energy collaboration
The UK has signed a Memorandum of Understanding with California (16 February 2026) covering cooperation on clean energy technologies, climate resilience and transport decarbonisation. The agreement is intended to facilitate knowledge sharing and joint work on innovation, regulation and investment linked to net‑zero systems. For UK infrastructure and energy players, it could open pathways for partnerships, demonstration projects and export opportunities in areas such as grid modernisation, EV infrastructure and climate‑resilient design. (Source: UK Government)
Also in the news
⚙️ Kier Group has appointed a new sustainability director shortly after launching its infrastructure division, signalling a push to embed ESG and carbon considerations into its growth strategy. (Source: Construction Wave)
🚆 A government consultation running until 10 March 2026 is seeking evidence on changes to permitted development rights to speed deployment of mobile masts, fibre and rail connectivity upgrades. (Source: UK Government)
💰 Pension Insurance Corporation has issued 28 policy recommendations to boost UK infrastructure delivery, including proposals to reduce project delays caused by objections and improve investor confidence. (Source: Pension Insurance Corporation)
🌱 Market commentary points to stable longer‑dated power contracts, rising LNG availability and continued government support schemes for energy‑intensive industries through 2026. (Source: EDF Energy)
🏗️ Data show residential groundwork volumes and approvals declining significantly, even as non‑residential construction starts rise 6%, suggesting a further tilt towards commercial and infrastructure work. (Source: House-builder.co.uk)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline. If today’s briefing is useful for your next bid, investment or board pack, consider forwarding it to your wider team.