What does 2026 have in store for the built environment?

Ask anyone in the built environment how 2025 was, and it’s likely they would say “busy and turbulent”. Legislation wise, the year was bookended by the introduction of the Procurement Act (2023) and the Planning and Infrastructure Bill gaining Royal Assent – with plenty in between. Meanwhile, Labour’s long-awaited Spending Review and a late Autumn Budget added more twists and turns to the economic rollercoaster.  

In years to come, it could be seen as a foundational year – with that very same legislation paving the way for a better planning system, unlocking development and delivering on net zero ambitions. So, what are the key areas to keep a beady eye on going into 2026 to pose challenge and opportunity? 

The latest S&P Global UK Construction Purchasing Managers’ Index confirmed that construction output – albeit up ever so slightly in December – remained in negative measures for the whole of 2025.  

Building Magazine’s annual survey revealed that overall revenue for the UK’s top 150 contractors and housebuilders was up 6.4% year-on-year – though it’s worth noting that 40% of firms report turnover being down. Not surprisingly, the picture varies when looking solely at housebuilders – with half of the top 20 reporting a drop in turnover – reflecting the uncertainty driven by the late Budget, policy and the economy in equal measures during 2025. 

But, work continues, with data from Glenigan revealing that more than £1 billion of contracts on major projects are at the tender stage and due to be awarded ‘imminently. These schemes cover office and commercial, education and housing.  

The bedding in of the Planning & Infrastructure Act

The Planning & Infrastructure Act entering into law represents one of the most consequential changes to the regime in recent years. This legislation intends to accelerate the delivery of ‘nationally significant’ infrastructure, streamline decision-making, and reduce the barriers that cause delays – especially around consultation and legal challenges. For an industry long-frustrated by slow approvals, this is clear political intend to prioritise growth and delivery – but as always, the proof will be in the pudding.  

As is so often the case, legislative change alone cannot solve longstanding issues. How much impact is to be felt immediately is debated, with secondary legislation and updated guidance being important in driving the change. Most importantly, how local planning authorities apply new powers will be critical – but against a backdrop of resource issues and risk aversion, there’s a long way to go. 

2026 marks the bedding in year, with the new Act setting the direction of travel and will work alongside other expected policies like the forthcoming long-term rail strategy. Some schemes may benefit from faster decisions, but success won’t be in just the speed of decisions – but whether levels of certainty and confidence in the sector begin to recover. 

The conversation continues as the National Planning Policy Framework goes through another round of consultation, which started in December. The proposed revisions – from changes to Biodiversity Net Gain and stronger energy efficiency policies to a default ‘yes’ for development near train stations and more SME support – are proving divisive across the sector, so expect this to remain a key talking point as the consultation period runs into March – and beyond.  

Healthcare, healthcare, healthcare

Reinforced autoclaved aerated concrete (RAAC) continues to crop up in headlines – most recently centring around the confirmation that seven hospitals built using RAAC are not going to meet their remediation deadlines. Health Secretary Wes Streeting has called the original New Hospitals Programme (NHP) a series of “promises that were never going to be met.” Regardless of the politics, those health trusts needing urgent remediation are now facing maintenance bills just to keep buildings safe expected to span many more years – pulling budget that could otherwise be used for improving service delivery and patient experience.  

New work is still being prioritised. 16 contracts were shortlisted to compete for new hospitals last year, with 10 expected to be awarded schemes in the immediate future. Along with 250 Neighbourhood Health Centres promised by the government in the Autumn Budget, we can expect a lot of discussion around the best way to deliver such schemes – with many turning to effective procurement processes, and standardisation of design to a solution to speedy delivery.  

And we can expect the conversation around healthcare design to continue to evolve – moving from architecture-first to MEP-first - zoning in on patient experience and meeting the net zero ambitions of the NHS.  

The building safety agenda is going nowhere

This month, the Building Safety Regulator formally separates from the Health & Safety Executive to become a standalone public body. At the same time, the government is pressing on with consultation around plans to set up a single construction regulator, moving away from the current “fragmented” safety system. These plans have sparks industry concerns in some – particularly relating to delays in the gateway system as it stands.  

The Building Safety Regulator had committed to clearing the backlog of Gateway 2 approvals by the new year – a goal that ultimately hasn’t been met. However, latest data has shown momentum growing in decisions, with more than 700 decisions made in the final quarter of 2025 (compared with around 200 in the first quarter). The figures - covering the 12-week period to 22 December – also show that 102 of the regulator's 171 live cases for new build were now being handled by the Innovation Unit established in the summer. That's just under 60% - up on 44% on the previous reports in late November. 

So, progress is being made, but there’s still a way to go with more than 170 live cases reported in December. A point to watch is whether any changes will be introduced to the gateway system following a House of Lords committee report urged ministers to introduce a more staged approach to allow design and build contractors to progress construction while detailed design work continues – a recommendation backed by Dame Judith Hackitt, the main driving force behind the Building Safety Act.  

Finally, looking forward, a consultation will be launched on Approved Document B (Fire Safety), including new provisions for evacuation lifts in residential buildings over 18 metres. And late December saw the announcement that the Building Safety Act will be reviewed in 2027 – so expect to see discussion and consultation in 2026 on how the first five years have moved the needle.

No matter your agenda in the built environment, there’s a lot of noise to cut through – and that relies on effective storytelling and picking the right tactics to positively contribute to your business goals. Get in touch to find out how we can help you do just that.