BE News asked leaders from across the built environment industry to summarise 2025 in one word and share their hopes, fears and expectations for 2026. A whopping number of you responded, so to make this year’s mega forecast more digestible, we have broken it down into parts and will publish a fresh selection of ‘26 for ’26’ every day this week. Enjoy part four!
Ari Boyd
CFO, Aprirose
Sum up 2025 in one word: Transition
Do you feel more or less optimistic than you felt 12 months ago?
Marginally more optimistic.
What do you think will be the key watchwords/industry trends in 2026?
The return of core/long income money.
Sum up your hopes, fears and expectations for 2026: It’s easy to be negative about real estate given the current climate and the pressure of business rates and other taxes/costs hanging over the sector but, looking forward, there are still opportunities. Firstly, there is an abundance of debt available and at a lower cost than in the last few years, which is reassuring to investors. Secondly, pricing is much more attractive across a number of assets with some higher entry yields currently for leisure, in particular, if there is an appetite to deal with covenants and proactive asset management.
Thirdly, offices – despite the aforementioned business rates – are seeing a rebound thanks to a rise in demand, and a constricted pipeline. Fourthly, experienced operational real estate management will become even more crucial given a greater cost pressure from business rates, wages and NIC (amongst others) that, left untackled would eat away at income and value but, dealt with expertly, still represents the biggest opportunity to drive efficiency and value.
Fifthly, we are seeing more unique assets, perhaps in alternatives, that have surplus land attached that can add development value. Finally, we may see some opportunities coming from investors leaving the UK who want to take capital with them and are more motivated to do a deal.
James Lowery
CEO, essensys
Sum up 2025 in one word: Polarisation.
Do you feel more or less optimistic than you felt 12 months ago?
I’m more optimistic than a year ago. There’s still uncertainty in the market, but it feels like businesses have adjusted to the uncertainty rather than waiting for some big moment to unlock things. We can see this clearly in the world of real estate and offices. The questions around whether there is a need for office space have reduced, and hybrid working patterns are starting to normalise. Record rents in high quality spaces indicate that confidence is returning at the top end of the market and the paralysis of the last few years is easing. This gives me more confidence going into the year ahead.
What do you think will be the key watchwords/industry trends in 2026?
I think 2026 will see an innovation leap in how businesses operate, especially within CRE. After several years of caution and decision paralysis, with portfolios being tightened and financial resilience prioritised, businesses are now planning for what’s next. This starts with understanding how people actually use space – leveraging data to make a material difference to the customer experience, and ultimately differentiate in the market.
Operators and landlords will focus on optimising existing portfolios, improving how spaces are used, enhancing the customer experience, and running buildings more efficiently. Although expansion will continue, it’s less about rapid growth and more about elevating what’s already there and finding smarter ways to operate.
Sum up your hopes, fears and expectations for 2026: For 2026, I’m hoping to see bold moves in the market, not just incremental changes. I would be delighted to see those daring to be different start seeing a material uplift on key metrics – higher occupancy, higher rents, and greater retention. I have seen some very interesting plans brewing behind the scenes – I hope to see these in action! My fear is mediocrity. A lot of the market has taken a “wait and see” approach in recent years, which risks creating a generic ‘middle market’ in an otherwise exciting industry. If we just keep stepping forward in a safe, generic way without ambition or imagination, I will be really disappointed.
Overall, I expect 2026 to be a year where the quiet, considered planning from the prior year allows businesses to take bold steps in the year ahead. The building blocks have been laid. The data and technology are available to effect real change. It gives them the confidence to leverage insights, innovate with purpose, and move from theory to results. Next year is the time to elevate the customer experience and ultimately outperform on every measure that matters.
Remi Smith
Associate director, Avison Young
Sum up 2025 in one word: Resilient – year of setting the footings.
Do you feel more or less optimistic than you felt 12 months ago?
I feel more optimistic now than 12 months ago. The transactional market over the last year has been a complex and challenging landscape, both nationally and regionally. The second half of the year did see an increase in the volume of deals in the North West. In particular, Liverpool’s Q3 office take-up surged 166% to 146,000 sq ft, marking the strongest quarter since 2022 and rising 17% above the 10-year average.
What do you think will be the key watchwords/industry trends in 2026?
As we enter 2026, I think we’ll continue to see the adaptability and quality of spaces coming to the forefront. Demand will continue to favour better quality space, but with a lower overall quantum, and mixed-use schemes and flexible use classifications will result in more diverse tenant mixes.
Retrofitting and repurposing existing buildings will remain high on the agenda, alongside the continued rise of modular design to enable the delivery of buildings that can evolve with occupiers’ changing needs. ESG considerations, including green leases and sustainability credentials, will sit firmly at the core of occupiers’ decision-making.
Sum up your hopes, fears and expectations for 2026: To revitalise the office market in the regions, it is necessary to have an influx of new development, with ESG sitting at the core of these schemes. I expect the post-Covid ‘flight to quality’ to continue, with occupiers’ preferring centrally located offices with excellent amenity and transport connectivity. Grade A office space in Liverpool is diminishing, and I fear that if we do not see 2026 as a turning point, we will no longer be able to support the growth of our heritage businesses and attract new occupiers.
In Liverpool, there is marked recognition of the need to develop office accommodation, specifically in the city centre. In the past, sites have stalled due to lack of funding and stagnant rents, resulting in unviable schemes. There is a collective recognition by both the public and private sectors that we need to get developments moving in the city.
I am optimistic that through strong relationships between the public and private sector, we will see these schemes unlocked. I hope these schemes are vibrant, complement our heritage and pioneer environmental standards. The time is now, and I hope this time next year we will have cranes in the sky!
Roy Shaby
Founder, Tradestars
Sum up 2025 in one word: Transformative
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic.
What will be the key watchwords or industry trends in 2026?
Mindful spending and social media.
Sum up your hopes, fears and expectations for 2026: I hope the government will take more tangible steps to support businesses, particularly those driving growth and employment across the country. My fear is that policy decisions may move in the opposite direction and create further friction for operators who are already navigating a challenging environment. I expect landlords to be far more conscious of the needs of their tenants. The new age tenant is more savvy than ever and knows exactly what they want from their space provider. Real estate owners will need to purpose and programme their buildings accordingly. Those who understand these expectations and design with intent will thrive.
John Baybut
Managing director, Berkeley Shaw Real Estate
Sum up 2025 in one word: Growth
Do you feel more or less optimistic than you felt 12 months ago?
More positive. We continue to grow, bringing talented new colleagues into the team by acquisition and organically, and the market is responding very positively to their approach.
What do you think will be the key watchwords/industry trends in 2026?
AI and renters’ rights.
Sum up your hopes, fears and expectations for 2026: The challenge to portals from AI search engines will be significant, but it’s not yet clear whether this will be an opportunity or a threat for estate agencies. I expect lots of sole trader agents taking market share in clumps, but not making enough money. Never a good look. I expect the property market will be good next year. There are too many people being negative about their own business, government and tax. Every government in the last 50 years has put up taxes. There’s simply no room for negativity in my business on anything, at any time.
Magdalena Skinner
Managing director, Darin Partners
Sum up 2025 in one word: Volatility
Do you feel more or less optimistic than you felt 12 months ago?
Much more optimistic.
What do you think will be the key watchwords/industry trends in 2026?
Recovery, opportunity, versatility, creativity, repositioning, reinvention, revival and renaissance
Sum up your hopes, fears and expectations for 2026: As rates stabilise and the remaining forced sellers come to market, we should see the volatility in the UK property market that continued apace in 2025, finally abate. Identifying the bottom of any market is always a hazardous venture, but with demand for elite central London office space increasing, the paucity of affordable housing and the government’s objective of 1.5 million new homes well behind schedule, we should see 2026 emerge as a year of recovery and opportunity for high quality office space, residential development and commercial property ‘transformations’ – where investors with conviction and creativity seize opportunities and leverage what should be a more favourable planning regime.
Buyers and owners who can reinvent and reposition their existing portfolios through mixed-use schemes and a thoughtful re-designation and repurposing of property should be able to ride the wave of a more benign credit environment and capitalise on emerging opportunities so as create real value. Darin Partners have continued to see confidence in the UK market slowly recover and evolve with demand from overseas investors reemerging for acquisitions, investments and developments that can be properly risk managed. We see confidence in our industry returning and we predict a cautious recovery and increased conviction which whilst falling short of a full resurgence in value, should see steady growth, improved yields and a restoration of stability and investor appetite.
Chris Bolland
Managing partner, Brock Carmichael Architects
Sum up 2025 in one word: Transitional
Do you feel more or less optimistic than you felt 12 months ago?
Cautiously more optimistic but clear-eyed. Demand for urban living remains strong and national policy supports the need to accelerate housing delivery, but optimism is balanced by viability: a tax-heavy Budget, persistent cost pressures and a more complex regulatory environment mean only the best-conceived schemes progress.
What do you think will be the key watchwords/industry trends in 2026?
Viability and risk-pricing: sharper underwriting; fewer schemes taken forward on optimism alone.
Regulation and delivery: the Building Safety Regulator becoming more mature, but still shaping timelines and risk profiles for high-rise.
Living-sector resilience: BTR and co-living attracting sustained demand and institutional interest, but with tighter scrutiny on design, management and long-term returns.
Partnership: public private collaboration becoming essential if regeneration and housing ambitions are to be met
2026 needs to be the year that intent becomes delivery in a more demanding financial landscape.
Sum up your hopes, fears and expectations for 2026: I hope 2026 brings the clarity and stability the sector needs to move schemes from concept to delivery. If planning reform beds in, build-cost inflation continues to ease and national policy maintains its focus on brownfield regeneration and housing delivery, then the strongest projects will have the conditions to progress. The fundamentals for well-designed urban living of all types remain resilient, and I hope we can convert that underlying demand into real, visible progress on the ground.
My fear is that the cumulative effect of higher taxation on property and investment income, continued fiscal drag on households and the operational realities of the Building Safety Regulator could stall otherwise good projects, particularly in high-rise. We risk entrenching the gap between ambition and delivery at a time when demand for professionally managed rental homes has never been higher.
My expectation is a more selective, more disciplined market: fewer schemes starting on site, but those that do will be rigorously structured, rooted in place, and backed by partners committed for the long term. Those who can align design quality, regulatory compliance and financial resilience will still find opportunity – and will shape the next chapter of urban regeneration in the UK.
Cath Webster
CEO, Thriving Investments
Sum up 2025 in one word: Delivery – a year of turning strategy into homes.
Do you feel more or less optimistic than you felt 12 months ago?
Cautiously more optimistic. Despite challenges, the residential sector has shown strong adaptability and innovation over the past year, and while viability issues remain, this should give us confidence for the future. We are also hopeful to see gilt yields slowly coming down, which will help with relative value for real estate.”
What do you think will be the key watchwords/industry trends in 2026?
Affordability – ensuring housing and services remain accessible for all.
Collaboration – partnerships across public and private sectors to tackle systemic issues.
Sum up your hopes, fears and expectations for 2026: As CEO of Thriving Investments, my hope is simple: accelerate the delivery of affordable, well-managed homes at scale for essential and key workers – and doing so with measurable social impact. In practice, that means crowding in more institutional capital, deepening partnerships and simplifying delivery models so we can move faster without compromising quality.
My fear is that persistent viability challenges – planning delays, build-cost inflation and regulatory uncertainty – could slow down momentum, just as confidence returns. My expectation is that disciplined execution, data-led decision making and policy tailwinds will tilt the balance in favour of delivery – meaning more schemes reach start-on-site, and clear pathways for long term investors to back affordability.
If we keep people at the centre, by building energy efficient homes with fair rents and pricing, 2026 can be the year we turn intent into impact at scale.
David Fuller-Watts
CEO, Kinexio
Sum up 2025 in one word: Political
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. I think we knew across the world 12 months ago that there would be some patience required with macro-economic and geo-political changes taking place across the UK, Europe and the USA all at the same time. There’s been a number of situations investors have had to contend with and, whilst that will likely continue into 2026 – the uncertainty seems to be settling down and transactions are definitely starting to pick up. That means the trickle-down impact of the real estate world supports innovation and welcomes new ideas.
What do you think will be the key watchwords/industry trends in 2026?
There will be even more use cases for AI within real estate as budgets remain tight and people are trying to do more with less resources. More regulations will be put around it more broadly and the companies that embrace change and disrupt the normal will be successful.
There will also be a big focus on risk and safety in public places in 2026. The new Martyn’s law legislation is the beginning, but people will stay away from places they perceive as unsafe. We’re working with the leading security companies to support with technology to reduce risk and allow building owners to monitor this more closely.
Sum up your hopes, fears and expectations for 2026: My hope is that we start to see some growth in the UK economy this year, driven by the recovery of the retail, hospitality and leisure industries. These play such a huge role in our everyday lives, they inspire us, relieve stress and are places that bring families and friends closer together, but they have faced increased cost pressures in 2025.
I expect we’ll see continued innovation in proptech, particularly in less mature markets. The Middle East and APAC are investing in new technologies and this will be something we’ll want to build on and across Europe where there are a number of exciting projects happening. I expect that regulations around the use of AI will become formalised in 2026 and the companies, like us, that are already bringing in regulation to their use of AI will be more agile in such an evolving model.
My fear is that we continue to see political upheaval. There is the potential for a leadership challenge in government which would make it unlikely that the continued pressure on public services and high cost of living would be addressed, impacting the retail, leisure and hospitality sectors more than most.
Kim Connor Streich
Founder & CCO, Greenshank Environmental
Sum up 2025 in one word: Foundational
Do you feel more or less optimistic than you felt 12 months ago?
No change. The battles that should have been won around biodiversity net gain and natural capital delivery are now needing to be re-fought. Confidence built across the development and landowner community is being questioned, as the government that was expected to back nature recovery has changed course.
What do you think will be the key watchwords/industry trends in 2026?
Nature Restoration Fund + environmental delivery plans. Build Baby Build? (The ‘?’ is very important!)
Sum up your hopes, fears and expectations for 2026: 2025 was the year natural capital moved from abstract policy into day-to-day development reality. Biodiversity net gain and nutrient neutrality are now material considerations in land acquisition, viability modelling and programme risk. The lesson from the past year is clear: uncertainty and delay are more damaging than cost. Developers can price risk if the rules are stable, and time scales clear. What they cannot plan around is policy change and planning delays.
My hope for 2026 is that the current BNG consultation comes to a sensible conclusion and the government does not make changes to appease a very small number of developers, but gets on with the task of reforming and resourcing the planning system. This will allow the housing development industry to build more desperately needed houses and the environmental sector to help offset the impact on nature.
My fear is that exemptions and short term political fixes reduce supply, reduce confidence and ultimately push prices up. A market can take years to establish, but can be destroyed in a few bad policy decisions.
Dominic Whelan
Head of real estate, RWK Goodman
Sum up 2025 in one word: Cautious!
Do you feel more or less optimistic than you felt 12 months ago?
I think it’s a very similar level of optimism as most recognise this is a challenging market with no immediate change to that status expected. There is a lot of caution within the market and across many sectors any momentum there is often slow. However, the property industry as a whole is entrepreneurial and is generally pro-active in seeking out opportunities where it can, so this helps keep optimism at a steady level. The geopolitical influences can’t be ignored so there is a general concern around overall stability
What do you think will be the key watchwords/industry trends in 2026?
Seeking opportunities for growth will be key. In the residential market, there is still an underlying issue around housing shortage but there are structural issues preventing unlocking that – primarily a challenging planning system and significant inflationary pressures on build cost (plus the already built in inflationary rises over recent years).
Build-to-rent and co-living schemes are likely to be used to try to fill the void with an increase in institutional support for such products. In the office market, we will also continue to see a disparate market – the high end of the market continuing to do well with a product-led approach but the secondary/tertiary market still struggling to establish its role in the market.
Sum up your hopes, fears and expectations for 2026: Geopolitical stability would be the greatest hope, but it is perhaps naive to think the turbulent times we live in are likely to change any time soon. We therefore must focus on what we can control and make the UK more open and supportive of entrepreneurial growth. The much-promised planning system reform would be a helpful (and essential) boost to many sectors. Expected reductions in interest rate may also assist, but with the inflationary risks that follow, we should be careful not to rely on this too heavily.
Land values will remain challenging regardless of funding market strength. The growth of the office flexi market will continue at pace. Successful landlords have realised the impact the flexi market has had on even traditional lease arrangements. Gradual returns to offices will support the office market but with a real split between the (thriving) high end market and the rest.
Secondary/tertiary buildings will need to think creatively on how to generate interest – building a product addressing a tenant’s desire to flex its capacity needs and providing a hospitality led approach are likely to be differentiators. The challenges this creates on operational resources means there is likely to be further consolidation amongst operators.
Paul Kimber
Chief operating & financial officer, Thakeham
Sum up 2025 in one word: Change
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. Government funding interventions and planning reforms are starting to flow through, creating real opportunities to deliver affordable homes at scale.
What do you think will be the key watchwords/industry trends in 2026?
intervention. While we’re moving in the right direction on funding for affordable housing and planning reform, we need the government to stimulate demand for private housing in order to make delivery viable.
Sum up your hopes, fears and expectations for 2026: Over the last few years, the sector has faced consistent challenges around funding for affordable housing and delays caused by underfunded planning departments. This year feels like a real turning point, and we can see light at the end of the tunnel. The government’s £39bn pledge is beginning to flow into new projects with our RP partners, while planning reforms are helping to streamline processes and improve viability. These changes put the sector in a much stronger position than a year ago for increased housing delivery.
The final piece of the puzzle is restoring confidence and activity in the private sector through a demand‑side intervention such as help-to-buy. If the government is able to stimulate demand, we can push on and start delivering housing at the scale and speed this country needs.
Mark Kitts
Managing director, Tawd Valley Developments
Sum up 2025 in one word: Progressive
Do you feel more or less optimistic than you felt 12 months ago?
I’m an optimist by default, looking always for the upside with a careful eye on risk and its management, so I would say about the same. With several planning approvals, confirmation of master development roles particularly for Skelmersdale town centre, and approved projects to deliver in 2026, what is there not to be positive about?
What do you think will be the key watchwords/industry trends in 2026?
Planning, regulation, finance, funding and politics. What I mean is the fluidity of national planning policy and the impact of ongoing change and what it means for securing planning approval at a local level; the impact of new building regulation on project delivery; the topsy turvy world of finance; and the up/down/sideways of interest rates.
The eagerly awaited new Homes England funding programmes are ones to look out for, too. In Lancashire, the prospect of local government reorganisation and its impact on the SWOT analysis for a council-owned development company like TVD.
Sum up your hopes, fears and expectations for 2026: If we were fearful, we wouldn’t do the job, as it’s laden with daily challenges, managing multiple risks simultaneously, and subject to threats in numerous permutations. I hope in 2026 the construction, development and housebuilding sector is able to flourish, fulfilling its ambition and addressing local, regional and national need for improved infrastructure, business premises and fundamentally good quality homes that the people of this country need, deserve and can afford.
I expect the work we do at the local level to thrive, with several starts on site, fresh planning applications and new planning approvals, along with high quality project completions that will address the fundamental housing and economic needs of the borough we work in, and its communities.
Gary Lintott
CEO, ecosync
Sum up 2025 in one word: Accountability
Do you feel more or less optimistic than you felt 12 months ago?
I’m cautiously optimistic about the market. There’s been a clear shift away from people chasing novelty and a growing demand for solutions that deliver measurable outcomes. We’re seeing fewer pilots and more full rollouts, with capital deployed more carefully but also more intelligently. Customers are sharper on what actually creates value, and as the noise has died down, the sector feels healthier and more grounded as a result.
What do you think will be the key watchwords/industry trends in 2026?
Proof – evidence-backed performance, not claims.
Consolidation – fewer platforms, broader capability.
Interoperability – tools that plug into real estates, not sit alongside them.
Operational AI – AI embedded in decisions, not dashboards.
Regulation-led adoption – MEES, Scope 1–3, ESG moving from theory to enforcement.
Retrofit-first thinking – sweat the assets we already have.
Total cost of ownership – buyers optimising for lifecycle value, not headline price.
Sum up your hopes, fears and expectations for 2026: Hopes – 2026 is the year proptech fully earns its place as infrastructure, not experimentation. I hope we see technology genuinely simplify operations – fewer systems, better decisions, clearer accountability. AI should quietly do the hard work in the background, helping estates reduce cost, carbon and risk without adding operational burden. I’d like to see customers rewarded for long-term thinking rather than short-term fixes.
Fears – My concern is fatigue – too many half-working tools, too many dashboards, and not enough real-world impact. There’s also a risk that regulation creates compliance theatre rather than meaningful change if data quality and transparency aren’t taken seriously.
Expectation – I expect consolidation, tougher buying criteria, and a clear divide between vendors who can prove outcomes and those who can’t. The winners in 2026 will be the platforms that integrate deeply into assets, deliver measurable savings, and stand up to scrutiny – technically, financially and operationally.
Nick Phelan
Founding director, EDGE
Sum up 2025 in one word: Adaptability. The ability to adapt was a defining trait of 2025. The built environment sector faced frequent changes, from political uncertainty and economic pressures to evolving planning policy. Success has come from staying agile as a business and being ready to pivot between sectors and services when needed.
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. Despite ongoing challenges, particularly in residential and commercial, there are clear signs of opportunity in the sector. Government infrastructure investment and the surge in retrofit demand give us confidence that the industry is better positioned for growth than it was a year ago. Logistics, data centres and healthcare also feel ready to explode.
What do you think will be the key watchwords/industry trends in 2026?
Decarbonisation – driven by net zero targets and tightening regulations, the focus will be on upgrading existing assets and estates to improve energy efficiency and reduce carbon emissions. Retrofit will become a key growth area as clients seek cost-effective ways to future-proof their portfolios.
Logistics and data centres – rapid expansion continues to support e-commerce growth and the digital economy. Demand for strategically located logistics hubs and high-capacity data centres will surge, requiring innovative design solutions and accelerated delivery to keep pace with the demand.
Digital integration – AI, predictive analytics and data-driven decision-making are moving from emerging concepts to mainstream practice.
Resilience – resilience will be key. Businesses will need strategies to meet delivery timelines, while ensuring projects can withstand ongoing environmental, political and economic challenges.
Collaboration – early engagement between developers, consultants and local authorities will be essential to unlock complex sites, streamline planning processes and accelerate project delivery.
Sum up your hopes, fears and expectations for 2026: 2026 feels like an important year for the property and construction sector. Retrofit opportunities will grow, with decarbonisation almost a prerequisite for funding and compliance as net zero deadlines approach. Logistics and industrial demand will remain strong, while data centres will surge on the back of AI’s rise to prominence.
I hope that housing regains some momentum, driven by government ambitions for 1.5 million homes and faster delivery of affordable schemes. Public sector projects in education, healthcare, defence and judicial should also grow as institutions look to modernise and decarbonise their estates. Some key challenges persist, however. Economic and political uncertainty may dampen market confidence and impact funding streams, while shortages of skilled workers in construction continues to be a big obstacle to delivering projects on time and on budget.
Ultimately, 2026 will be defined by resilience, collaboration and innovation. AI and digital workflows will help accelerate delivery, but human insight remains vital. At EDGE, success means adapting to growth sectors while blending technology with a people-first approach – allowing us to deliver sustainable, socially valuable and commercially-robust projects for our clients.
Richard Hughes
Director, Abode Living
Sum up 2025 in one word: Challenging
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic given the focus on affordable housing.
What do you think will be the key watchwords/industry trends in 2026?
In affordable housing, more focus on health, wellbeing and services on top of just a roof over heads.
Sum up your hopes, fears and expectations for 2026: With the focus on a greater standard of living as well as the provision of affordable and social housing, 2026 should be a better year for the sector. Costs will remain a challenge, as will planning and general viability. We also need registered providers to start buying units again.
But, overall, with government support, we really hope that the next 12 months will see a boost to properties delivered, with many existing units that are in disrepair brought back into circulation, and greater collaboration between the private and public sector to deliver customer experience and support, as well as homes. We strongly believe that we can build better lives by supporting residents and creating long term communities in both affordable and social housing and we are happy to work with others to share our ideas and learnings.
Dr Peggie Rothe
Chief insights & research officer, Leesman
Sum up 2025 in one word: Rhythm. A year ago, most organisations were still trying to make sense of hybrid work. Now, they’ve settled into clearer rhythms – for how people work, when they come in, and how they commute.
Do you feel more or less optimistic than you felt 12 months ago?
I’m more optimistic. Employee experience and supporting organisational culture are now recognised as key drivers and strategic priorities. While hybrid work still isn’t “solved”, the industry is making real, meaningful progress in the right direction.
What do you think will be the key watchwords/industry trends in 2026?
Structured hybrid is becoming the standard way of working, but with greater emphasis on employee experience – helping people do their best work, wherever that may happen.
Sum up your hopes, fears and expectations for 2026: Hopes – hybrid work has added real complexity to workplace strategy. My hope is that more real estate owners move beyond a transactional landlord model and invest in truly understanding their occupiers – becoming proactive partners who help clients create environments where people and organisations can perform at their best.
Concern – that progress stalls. The risk isn’t getting things wrong – it’s standing still. We need the confidence to test new approaches, learn quickly and adapt, rather than defaulting to familiar but ineffective models.
Expectation – despite growing fatigue around the hybrid debate, the reality is that only a minority of organisations have found the right balance. That means the conversation isn’t going away. In 2026, the focus should move beyond whether hybrid works, and toward how well it works – and who is willing to keep doing the work required to make it effective.
Alex Uregian
CEO, City Sanctuary
Sum up 2025 in one word: Stalled.
Do you feel more or less optimistic than you felt 12 months ago?
Optimistic (you have to be in this industry), but with (planning) conditions attached.
What do you think will be the key watchwords/industry trends in 2026?
Viability baby, viability.
Sum up your hopes, fears and expectations for 2026: After a wave of new regulation in 2025, from building safety and Awaab’s Law to healthy homes standards, health is set to become an even sharper focus in the residential sector in 2026. The risk is that this is addressed largely through compliance, rather than as a proactive design and investment choice. Our experience is that wellbeing-led design should be treated as an investment decision, not a regulatory cost.
Having delivered the UK’s first residential retrofit recognised by the IWBI with a WELL seal, we’ve seen how prioritising health can act as a genuine differentiator, supporting long term value, resident satisfaction and operational performance. Why? Because we have seen that investing in health pays back. The opportunity in 2026 is for developers and registered providers to collaborate more actively, piloting and scaling health-first approaches beyond our proof of concept, and that move the sector beyond minimum standards towards genuinely better, healthier homes.
Tom Ward
Co-founder and CEO, Meanwhile Group
Sum up 2025 in one word: Encouraging
Do you feel less or more optimistic than you felt 12 months ago?
As we head into 2026, we are entering the year with renewed confidence across our PBSA and co-living brands – Scape and Morro. The Meanwhile Group has delivered a strong year for leasing, underpinned by significant milestones including, the acquisition of a number of significant sites for both Scape and Morro, securing the fastest Gateway 2 approval for a new-build scheme, advancing multiple sites through the planning process and driving momentum across our development pipeline. Construction is progressing on two major projects within the group, both scheduled to open in 2026.
What do you think will be the key watchwords/ industry trends in 2026?
In 2026, the Building Safety Regulator (BSR) will remain a central focus across the industry. Securing approval for our Morro site on Kingsland Road has strengthened our confidence that the regulatory landscape is moving in a positive direction.
Affordability and occupancy across both PBSA and co-living development will also stay front and centre for operators and investors alike. At Meanwhile, we are committed to leading on product innovation, creating solutions that meet evolving customer expectations while delivering value-add strategies to address affordability challenges head on.
Sum up your hopes, fears and expectations for 2026: Across both Scape and Morro, we anticipate continued momentum in leasing, planning decisions and improvements to regulatory pathways. At the same time, we remain mindful of ongoing affordability pressures and their influence on the pace of housing delivery. Looking ahead, we expect 2026 to be a year of steady progress for the housing sector, supported by a resurgence in investor confidence and the emergence of meaningful opportunities across the market.
Lisa Gledhill
Managing director – national partnerships, Muse
Sum up 2025 in one word: Industrious.
Do you feel more or less optimistic than you felt 12 months ago?
I don’t do pessimism, so I’m aiming to frame the year ahead in a constructive light.
What do you think will be the key watchwords/industry trends in 2026?
In the mixed use, predominantly residential-led regeneration space, viability, the bridge to investibility, and resilience will be the key watchwords as we drive for success. Positively, we can expect UK pension capital to play an increasingly important role in addressing housing needs, alongside reimagining town centres and driving economic regeneration.
Sum up your hopes, fears and expectations for 2026: Quite specifically, I hope for an improved UK economic outlook that lowers gilt yields, reduces capital costs and ultimately makes UK investment opportunities more attractive and development more viable. Challenges will still remain in the year ahead for our industry.
That’s why collaboration between the public and private sectors remains essential if we are to tackle the UK’s housing pressures. Partnerships are vital, and I expect we will see more of them, including more innovative approaches and delivery models. Muse is ready to play our part and our national partnerships, ECF and Habiko, are ready to play theirs.
Ultimately, despite the difficulties facing our sector, I hope we remain committed to combating climate change through the built environment. After all, there is no “Planet B.” If we don’t take action, who will? And if not now, when?
Andrew Parkin
Partner & chair, Cundall’s Futures Group
Sum up 2025 in one word: ‘Cautious’ for the building industry, and ‘Chaotic’ for wider geopolitics.
Do you feel more or less optimistic than you felt 12 months ago?
I am feeling more optimistic, as there seem to be greater signs of spending than there were this time last year.
What do you think will be the key watchwords/industry trends in 2026?
I think 2026 will be a year of ‘Mind the Gap’: the gaps in climate resilience, power shortages, and skills. Climate resilience has been an urgent topic for some time, but the world is experiencing increasingly frequent and extreme weather events and natural hazards. The UK’s power shortage will also be an important conversation. As the nation aims to lead in AI and life sciences, energy-intensive facilities will be required.
The skills crisis will intensify as the UK pursues major infrastructure projects and housing. The Autumn Budget introduced Youth Guarantees for training and upskilling young people, alongside investment for SMEs to hire and train apprentices, but more has to be done.
Sum up your hopes, fears and expectations for 2026: I hope the industry will prioritise addressing the above gaps in 2026 by: making buildings and infrastructure both resilient and safe from climate risks, which will eventually become a requirement for insurers; rather than expecting infrastructure to adapt to our needs, proactively planning and building developments where power is available; and retraining workers displaced by AI or overseas manufacturing, and coming up with creative ways to make careers in the built environment accessible and attractive.
Ashley Wheaton
Vice chancellor, University of the Built Environment
Sum up 2025 in one word: Monumental. There genuinely are monuments in there. There are milestones that are achievements that didn’t come in the year – they are and were many years in the making. I think that’s really how I would sum up 2025 as much of this is the culmination of work which preceded it.
Do you feel more or less optimistic than you felt 12 months ago?
The benchmark for this is I felt incredibly optimistic at the beginning of this year. The reception over the last six months to the name change (from University College of Estate Management to University of the Built Environment) has revealed itself as incredibly positive. I’ve also had the opportunity to talk about our strategy and our place in the ecosystem of HE providers far more than I did previously.
Where my optimism is tempered is that we know there’s a massive amount of change coming. The government has announced change after change through white papers, through announcements on apprenticeships, through Skills England and so on. Yet almost all of them are absent in the detail. So, we know we will have to be responsive, we will have to be agile, we have to be fleet of foot next year – and we don’t know what that means yet.
What do you think will be the key watchwords/industry trends in 2026?
I can already tell you now it’s collaboration. I think there’s this ever-growing recognition that industry will work better when it works better together. Everywhere there will be a conversation about skills – that’s proving to be a really big problem now. Organisations that have told me for years that they don’t need any more talent and more skills, are now suddenly going, ‘there’s a problem, there’s a shortage’. So, we know that skills will be on the agenda.
Another thing I think will emerge this coming year is this debate about productivity and the use of technology. AI and productivity – two words, one theme – this industry has resisted that for many years. It knows it needs to do it, but it hasn’t. I think now it’s passed the tipping point where we cannot ignore it. The rate at which traditional roles in the built environment will be overtaken by AI and how much of their work will be AI-able is just staggering.
Sum up your hopes, fears and expectations for 2026: I think for this institution, the hopes I have is that we are well-recognised across industry, beyond where we’ve traditionally been recognised. So getting aligned with the professional institutes that we’re not with yet, around planning and civil engineering for example. That’s coming, and we’ve done a lot of work on that this year.
I think my hopes are also that we get some funding to do something faster or at scale that today we can only do organically. As an example, the government knows it wants more planners. Well, we could provide more planners if the government gave us the money to supply them. If it costs £10,000 to qualify a planner, give us multiples of £10,000, we’ll stand the course up and we’ll give you those planners.
We had this bold plan with DfE earlier in the year. We said give us £35m and we’ll give you 10,000 new entrants into the built environment – a tiny amount of money compared to what they’re spending elsewhere. That would have a big impact. So, a game changer on how we’re funded I think would be a real hope and dream.
Amy House
Director, Green Economy
Sum up 2025 in one word: Growth
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. The green economy is expanding rapidly, reshaping industries and driving innovation worldwide across energy, construction and infrastructure.
What do you think will be the key watchwords/industry trends in 2026?
Investment, delivery and circularity – particularly increased clean energy investment and wider adoption of circular economy models within business.
Sum up your hopes, fears and expectations for 2026: In 2026, the big hope is that the progress we’ve seen starts to translate into delivery on the ground – with more investment flowing into clean energy, clearer incentives for businesses, and practical help to support the shift to net zero, all driven by stricter sustainability regulation. There’s a genuine opportunity to build biodiversity and circular economy thinking into the way we design, build and run places, rather than bolting it on at the end.
The challenge is making sure ambition doesn’t run ahead of reality. Skills shortages, cost pressures and ongoing uncertainty could all slow progress if they’re not tackled head-on. Looking ahead to 2026, continued closer collaboration between the public and private sectors will help to turn climate goals into real economic and environmental gains.
James Taylor
Principal & London studio chair, Woods Bagot
Sum up 2025 in one word: Nascent
Do you feel more or less optimistic than you felt 12 months ago?
About the same.
What do you think will be the key watchwords/industry trends in 2026?
More from less.
Sum up your hopes, fears and expectations for 2026: I hope 2026 will see a London resurgence. Our capital remains inherently investible and a global safe haven which, when you scratch beneath the current viability challenges, still possesses the kind of cultural and economic magnetism few cities can rival. The fundamentals of London haven’t changed – resilient demand, international connectivity, heritage and tourism pulling power – it’s a place and brand that carries weight across every sector.
Construction costs have surged by roughly 20% over the past two years, driven by inflation in labour, materials, and supply chains, placing huge strain on viability and valuations. My hopes are that investors start to lean into London’s long term value, even when near-term returns might still feel uncertain.
To unlock our city’s next chapter, we must think big. More Elizabeth Line and Crossrail scale ambition to deliver a step change in how we conceive, deliver, and activate real estate to make London buzz again. This means looser planning zones that can help turn overlooked areas into more special investment zones, powered by incentives and transport investment to create high-quality places that also drive value and returns. Bold ambition, backed by clarity and confidence, remains the catalyst London needs to reignite momentum.
Lawrence Turner
Director, Boyer
Sum up 2025 in one word: Paradox
Do you feel more or less optimistic than you felt 12 months ago?
I was optimistic about the direction of national policy this time last year and with the release of the consultation draft NPPF at the end of 2025, we arguably couldn’t be in a stronger position, in policy terms, to deliver more homes.
The latest planning reforms go some way towards correcting the long-standing imbalance in the system, where objectors have often carried disproportionate weight compared with the silent majority who are neutral or broadly supportive of tackling the housing crisis. That said, planning reform is only one part of the challenge.
There are two other critical strands: restoring consumer confidence in the housing market, particularly for first-time buyers, and addressing the lag in construction supply chains and labour needed to actually build homes. These are far harder to influence directly and depend on wider economic growth and confidence. We may be moving towards a more positive planning environment, but homes will only be built at scale if people feel able and willing to buy them.
What do you think will be the key watchwords/industry trends in 2026?
Grey belt: moving from policy concept to deliverable allocations in local plans.
Planning capacity: significant investment in skills, expertise and resources within local planning authorities, which are currently underfunded and overstretched.
Environmental unblocking: nutrient neutrality solutions and water credits delivered at scale.
Community engagement: government doing more to explain to communities why new homes are needed and the benefits they bring to towns, villages and local economies.
Viability realism: accepting that not every site will deliver significant affordable housing under the “golden rules”.
Sum up your hopes, fears and expectations for 2026: Hope – that local authorities genuinely get behind the government’s planning reforms and apply them with confidence. If the draft NPPF’s clearer, more rules-based approach is embraced in decision making, it should lead to more positive determinations of residential applications at a local level and a steady uplift in planning permissions.
Fear – that delivery is undermined by a lack of resourcing and by entrenched local political opposition to housing growth. Even with a strong national policy framework, resistance at the local level can slow or block progress, particularly where growth remains politically sensitive.
Expectation – steady progress rather than transformational change. Grey belt releases will begin to translate into meaningful housing allocations, plan-making ought to become more straightforward and reliable, and the number of homes completed each year should increase. Planning alone cannot improve market confidence or inflationary pressures on the economy, but if the reforms already announced are implemented consistently at a local level, 2026 could mark the point where the housing market begins to turn a corner.
John Dawson
Director, Creative ITC
Sum up 2025 in one word: Momentum
Do you feel more or less optimistic than you felt 12 months ago?
It’s been a challenging year for the AEC industry, marked by US tariffs and geopolitical uncertainty. Yet, amid the turbulence, opportunities have emerged and optimism is increasing. Some firms are growing faster than others, but agile industry leaders are gaining momentum, with the UK at the forefront. In a shift toward more strategic, tailored approaches, UK architects and engineering firms are winning more bids by deepening their specialisations and focusing on areas where they can truly succeed.
What do you think will be the key watchwords/industry trends in 2026?
The key industry trends in 2026 will largely mirror those of 2025 – but with an important step change. AI and digital twins will remain high on AEC leaders’ agendas, and firms will continue to focus on BIM adoption. The most significant shift, however, will be the evolution of AI from a conceptual tool to a business-as-usual capability that delivers ROI. Building on 2025 foundations, execution will become the watchword in 2026.
While many firms have already invested in AI platforms and piloting tools, most have yet to realise any real returns. AI will only deliver real value when it moves beyond experimentation and becomes embedded in everyday workflows. Leadership teams are shifting from FOMO to pragmatic, outcomes-focused strategies built on proprietary systems. In 2026, more businesses will begin to unlock that potential.
Sum up your hopes, fears and expectations for 2026: With the shifting market, regulatory and political landscape, AEC organisations will instil greater control to reduce risk and maintain operational resilience for mission-critical systems. Cyber threats are rising, meaning security will top board agendas, while concerns about data ownership and sovereignty will prompt firms to rethink tech choices.
Industry demand for more value-driven innovation will evoke a behavioural shift. Vendor lock-ins, interoperability issues and recent moves by tech giants have left many questioning whose interests are being served. Rather than blindly repeating entrenched IT investment patterns, organisations and regulation will push for fairer partnerships and greater agility.
Getting a handle on their data, ensuring future-proof infrastructure and workload portability will become non-negotiable. Firms will adopt a ‘cloud smart’ strategy – choosing the right platform for each workload – and demanding transparency and measurable value.
Just as AEC firms are doubling down on their own areas of expertise, so too will we see them seeking tech partnerships with industry specialists who can help them accelerate their transformation and deliver business objectives. The fear is that some AEC businesses will stagnate because change feels too complex – and that’s the first step on the road to obsolescence as more agile competitors seize market share.
Building climate resilience into office conversions