At a glance
🏛️ Government unveils a “regulation reset” with new central bodies to unblock planning for 1.5m homes, major transport schemes and clean energy.
⚙️ RLB lifts 2026 tender price inflation forecasts to 3.45% as supply disruptions and weaker project starts squeeze contractor margins.
🏗️ UK housing market shows record prime prices but sharp drops in private housing construction, with net additions forecast to fall to 220,000 in 2026‑27.
🚆 Updated national infrastructure pipeline points to £718bn of planned investment over the next decade, led by energy and water.
🌱 Ofgem confirms a 7% cut in household energy bills from April 2026 even as network investment and new flexibility markets ramp up.
Today’s update: policy is moving to accelerate planning and delivery just as market data show weakening housing and infrastructure starts and rising inflationary pressure on tenders. A much larger, energy‑heavy infrastructure pipeline is now set against capacity constraints in contracting and mixed signals from the wider economy. Here’s what you need to know to stay ahead today.
Ongoing Stories
Returning to the theme of planning reform highlighted in recent issues, the government’s new “regulation reset” goes further by creating an Infrastructure Unit and Development Industry Council to directly tackle planning barriers on flagship schemes such as East West Rail and the Lower Thames Crossing. This adds institutional machinery to the central intervention trend already visible in the Planning and Infrastructure Bill. (Source: GOV.UK)
Building on earlier coverage of long‑term infrastructure risks and delivery models, the latest UK infrastructure pipeline update now quantifies a £718bn programme over the next decade, with £365bn in energy and specific 2026 starts including the Haweswater Aqueduct Resilience Programme and Lower Thames Crossing. This underlines the gap between strategic ambition and on‑the‑ground delivery capacity flagged by industry bodies. (Source: GOV.UK)
Following our ongoing focus on cost escalation and capacity, Rider Levett Bucknall’s uplift to 2026 tender price inflation forecasts and Arcadis’ warning on megaproject delays both reinforce earlier signals that inflation, planning friction and skills shortages are now structurally embedded delivery risks rather than short‑term shocks. (Sources: Geomechanics.io, Arcadis)
Top 5 Headlines
🏛️ Government launches “regulation reset” to fast‑track homes, transport and clean energy
The UK government has announced a modernisation of the regulatory framework aimed at delivering 1.5 million homes, major transport projects and clean energy infrastructure more quickly. Measures include establishing a new Infrastructure Unit to resolve planning barriers and a Development Industry Council to formalise dialogue with developers, alongside clearer lead roles for environmental regulators on specific megaprojects such as East West Rail (Natural England) and the Lower Thames Crossing (Environment Agency). This package signals a more centralised, programme‑oriented approach to planning and consenting that will shape risk, timelines and stakeholder engagement strategies across the project pipeline. (Source: GOV.UK)
⚙️ Tender price inflation edges up as sub‑£100m project starts fall 15%
Rider Levett Bucknall now expects UK tender price inflation to reach 3.45% in 2026, up from 3.27%, driven by material and fuel supply delays linked to Middle East geopolitical tensions. At the same time, project starts under £100m have fallen 15% year‑on‑year and the overall market value is down 26%, with private residential and infrastructure starts hit hardest. For clients and contractors, this combination of higher input costs and weaker workload in key segments points to fiercer competition for viable schemes, tighter margins and potentially more conservative pricing on risk. (Source: Geomechanics.io)
🚆 £718bn UK infrastructure pipeline sets out decade of energy‑led investment
The latest national infrastructure pipeline outlines 734 planned projects worth around £718bn over the next 10 years, with energy schemes accounting for £365bn alongside major commitments in water, transport, social infrastructure and digital assets. Key projects due to start in 2026 include the Lower Thames Crossing (targeting opening in 2032), the £3bn Haweswater Aqueduct Resilience Programme and Project Reach rail connectivity upgrades, backed by £725bn of public funding commitments. Returning today as a central theme, the expanded pipeline clarifies long‑term opportunity volumes but also underscores that planning complexity and skills shortages remain the main constraints on converting this work into site activity. (Sources: GOV.UK, Transport + Energy)
🏗️ UK housing: prime prices hit records as construction output weakens
House prices in prime London locations have reached new highs, including £50m transactions in luxury schemes such as Park Modern, with Savills forecasting 1.5% growth in southern England in 2026 and 17.6% by 2030. In contrast, net housing additions are expected to fall to around 220,000 in 2026‑27, while private housing construction has dropped sharply—down 22% over three months and 36% year‑on‑year—with major housebuilders like Vistry and Taylor Wimpey reporting lower completions despite strong pricing. This divergence between pricing and build‑out rates raises questions over the feasibility of the government’s 1.5m homes by 2029 ambition and will influence land, funding and phasing decisions for developers. (Sources: BrickWeaver, Showhouse)
💰 Construction output data show double‑digit falls in starts but modest medium‑term growth outlook
Official statistics for Q1 2026 indicate that the value of on‑site work has declined by 10% in the three months to February and remains 15% below 2025 levels, with private housing starts down 22% in the short term and 36% year‑on‑year. Infrastructure starts have also fallen sharply, partly offset by growth in utilities, while industrial and commercial sectors are seeing stronger new orders despite ongoing inflation, labour shortages and planning and finance uncertainty. The data point to a cyclical trough in current activity but a forecast average annual market growth of about 3.2% between 2026 and 2029, suggesting clients may find more competitive pricing now ahead of a gradual rebound. (Sources: GOV.UK ONS, Arcadis)
🌱 Energy bills to fall 7% as system flexibility and storage support ramp up
Ofgem confirms that the typical dual‑fuel direct debit household bill will fall by around £117 a year (7%) between April and June 2026, reflecting removal of green levies from bills and a £150 government reduction announced in the 2025 Budget, despite rising network costs linked to infrastructure upgrades. At the same time, government and the regulator are advancing new business models for long‑duration energy storage, hydrogen power and carbon capture to be deployed from 2026, alongside broader support for system flexibility. For investors and delivery teams, the combination of political focus on consumer bills and parallel investment in low‑carbon system assets will shape the risk profile and revenue models of future grid and generation projects. (Sources: Ofgem, Slaughter and May)
Also in the news
🚆 Construction has begun on Scotland’s Corran Ferry infrastructure improvement scheme, aimed at boosting terminal capacity and accessibility on this key local transport link. (Source: DredgingToday)
⚙️ Arcadis warns that delays to UK megaprojects, including AMP8 water investment and major transport schemes, threaten infrastructure‑driven growth despite progress on the New Hospital Programme and Northern Powerhouse Rail. (Source: Arcadis)
🏗️ Build‑to‑rent remains a relative bright spot, with forecasts suggesting UK BTR investment could surpass £5.7bn in 2026 as completions continue to rise, even against wider housing construction weakness. (Source: Showhouse)
🚆 Project Reach rail connectivity upgrades, highlighted in the refreshed pipeline, are positioned as a key enabler of regional economic growth alongside larger corridor schemes like the Lower Thames Crossing. (Source: Transport + Energy)
💰 Market commentators note that despite current weakness in on‑site activity, industrial and commercial construction new orders are strengthening, offering diversification opportunities for contractors exposed to softer housing and infrastructure workloads. (Source: Arcadis)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from boardrooms to site offices. If today’s briefing is useful, consider forwarding it to colleagues planning bids, investment cases or delivery strategies this quarter.