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 one!
Melanie Leech
Chief executive, British Property Federation
Sum up 2025 in one word: Forgettable
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic but cautiously so. Interest rates are likely to come down further albeit slowly and post-Budget we have greater clarity at least on the government’s fiscal approach. Whilst we have many continuing challenges, the UK is still one of the first places global investors want to find reasons to come to. Action on planning and on tackling 2025’s biggest headache – the performance of the Building Safety Regulator – should feed through during the year. As with the last few years though it will be a mixed picture – with rental performance strong as demand continues to outstrip supply for prime assets and some sectors, whilst capital growth will remain subdued.
What do you think will be the key watchwords/industry trends in 2026?
Cost of capital, viability, regulatory and policy stability will remain the critical components of a better year for real estate. We will see the operalisation of real estate continue as customers become more sophisticated and digitisation and the role of proptech and innovation will be key to business success.
Sum up your hopes, fears and expectations for 2026: Viability challenges completely stalled development in 2025 and this must not be the case in 2026 if the government wants to deliver on its commitment to grow the UK economy and build 1.5 million homes in this Parliament.
Barriers to investment and development must be removed and the framework the government is setting in place to improve the planning system needs to turn from policy to delivery. The investment and drive to increase resourcing in local authorities and in the Building Safety Regulator is welcome, but must not be at the expense of other parts of a hard pressed system.
Investor confidence needs to be restored in 2026. I am hopeful that the UK remains an attractive destination given challenges across the globe, and that there are great opportunities for investors if we can tackle viability challenges and work in tandem with the government to give consistent messages and the certainty investors they need.
More personally, I hope to see continued strong support from across the sector for Real Estate:UK merging AREF, BPF and IPF into a single powerful convenor and voice for the sector and wish my successor every success in leading it forward.
Neil Sinclair
Chairman, Pristine Capital
Sum up 2025 in one word: Frustrating
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic.
What do you think will be the key watchwords/industry trends in 2026?
Unrivalled opportunities.
Sum up your hopes, fears and expectations for 2026: I have hopes that 2026 will be the year of opportunity. Interest rates will slowly fall and I see a considerable uplift in regional offices, where I see greater rental growth than in London. Some of the second-tier cities such as York or Cheltenham will get more interesting as there will be a realignment of rents due to higher building costs.
Leisure will still be difficult due to this government not supporting hospitality, but there will be opportunities to buy very competitively. In addition, some overseas investors will decide that the UK is the wrong place at the moment which creates a buying opportunity. I am inclined to agree with Nigel Farage that there could be an election in 2027 and one or two political journalists are starting to mirror that thought. This is why I believe that 2026 will be an opportunistic year.
Richard Pilkingon
Group CEO, Fusion Group
Sum up 2025 in one word: Resilience
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. Last year brought challenges but the sector responded with resilience. We now have greater clarity on planning processes, and demand remains strong across PBSA and the wider living sector. That gives me confidence that 2026 will be a year of real progress.
What do you think will be the key watchwords/industry trends in 2026?
Investor confidence! Delivery at scale, underpinned by strategic partnerships.
Planning clarity will unlock development; PBSA as catalyst for mixed-use placemaking.
Viability, as affordability is balanced against cost pressures.
Sum up your hopes, fears and expectations for 2026: 2026 should be a year of acceleration. My hope is that the sector builds on the groundwork of 2025 and moves decisively from planning to delivery. Demand isn’t slowing, it’s still outstripping supply. With planning processes improving, we have a real chance to unlock schemes that have been stuck for too long. Strategic partnerships will be the engine driving this progress, bringing together capital, land, and operational expertise to deliver at scale.
My fear? That lingering regulatory uncertainty or unrealistic affordability requirements could slow momentum just as confidence returns. But my expectation is more positive: I believe we’ll see a pragmatic approach from policymakers, enabling viable schemes to come forward. For Fusion, this is the year partnerships translate into action, with PBSA leading the charge and setting the pace for wider living development across the UK.
Alexandra Houghton
Head of commercial, Carter Jonas
Sum up 2025 in one word: Uncertain
Do you feel more or less optimistic than you felt 12 months?
Cautiously more optimistic! With some uncertainty now lifted, a moderate uptick in investment would go a long way in the UK property market, particularly if borrowing costs begin to ease. I’m most excited about the prospects for the science and technology sector in 2026.
What do you think will be the key watchwords/industry trends in 2026?
ESG could remain a decisive factor for corporate occupiers, shaping major decisions including leasing choices, retrofit priorities and space utilisation. We are closely monitoring how this affects leasing and occupation, and the barriers occupiers face in aligning portfolios with wider ESG goals. Alongside this, ‘flight to quality’ looks set to be a fixture of 2026 with firms continuing to flock to prime real estate, and AI enabled workforce planning could really accelerate.
Sum up your hopes, fears and expectations for 2026: Hopes – interest rate relief, increased stability and growth, and renewed momentum across the London office, national industrial and science and technology sectors. These are key focus areas for Carter Jonas as stated in our Vision 2030 strategy.
Fears – persistent affordability challenges and further squeezes on business profitability – a landscape which has got harder to navigate in recent years.
Expectations – that we’ll probably land somewhere in the middle of my hopes and fears! I feel confident that Carter Jonas can navigate what lies ahead, our broad client base and diversified income streams across transactional and non-transactional services provides us with resilience for the year ahead.
Oliver Cummings
Managing director, head of PBSA, Europe, Cain
Sum up 2025 in one word: Evolution
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic.
What do you think will be the key watchwords/industry trends in 2026?
Regulation, Gateway approvals, future-proofed stock, remediation, construction costs, affordable PBSA, international student numbers.
Sum up your hopes, fears and expectations for 2026: The student accommodation market remains positive and competitive. Rental growth is expected to settle into a more normal pattern after the post-Covid surge. More students are choosing PBSA as pressures on HMO landlords continue. Gateway backlogs will hopefully be unlocked and timelines can be met going forwards. Repositioning older assets presents a real chance to add value, though remediation must be carefully managed.
Well run schemes should perform strongly while the market adapts to rising costs and regulatory change. The year will reward those who plan carefully, act decisively and deliver fully compliant, modern stock that students expect. The biggest concern is over regulation continuing to restrict opportunities, or the introduction of new regulation further impacting viability.
David Carter
Chairman, Sandyford Properties
Sum up 2025 in one word: Steady
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic.
What do you think will be the key watchwords/industry trends in 2026?
Occupational market revival and competitive debt.
Sum up your hopes, fears and expectations for 2026: There were fewer rate cuts last year than the market initially expected. With lower inflation predicted post-Budget and a more stabilised economy, interest rates will likely be cut further making the debt buyers increasingly competitive. Lettings in the big box industrial market are beginning to happen, such as Panattoni’s letting of a 440,000 sq ft unit in Sittingbourne to ID Logistics. When large national and international occupiers begin to take up space, this typically has a knock-on effect to the mid-box and multi-let industrial sectors too – so we expect a revival in occupational take-up as the year progresses. Industrial investment volume was at best flat last year, so our hope and belief is that the volume will increase this year with more opportunities for both buyers and sellers as the market becomes more liquid.
Our concerns now that the Budget is out of the way are more on the international side: continued tensions between America and the rest of the world, or indeed that the war in Ukraine spreading could cause monetary issues for countries including the UK. Although, at the same time, it is beginning to create domestic demand from the defence sector for industrial space.
Julie Ennis
Head of UK occupier, CBRE
Sum up 2025 in one word: Complex
Do you feel more or less optimistic than you felt 12 months?
I feel more optimistic than I did a year ago. The UK real estate market is showing encouraging signs of recovery, supported by interest rate reductions that have improved liquidity and confidence. Demand for prime, well-connected assets remains strong, and sectors such as living and operational real estate continue to demonstrate resilience. We’ve seen logistics take-up stabilise as occupier decision-making remains cautious.
When we turn to retail, leasing activity continues to accelerate as occupiers realise expansion plans through flagship store formats. Tight supply on London’s key retail streets has resulted in prime rental growth. Collectively, this growing momentum suggests a stronger year ahead, with opportunities for occupiers to make strategic decisions as conditions normalise.
What do you think will be the key watchwords or industry trends in 2026?
Economic and political stability will be key, with further interest rate cuts likely to underpin sentiment and transactional activity. The office market will remain polarised, with quality and location driving decisions. Growth in data centres and life sciences will likely accelerate, fuelled by AI adoption and government backing for critical infrastructure. Technology and AI integration will become a cornerstone of operational efficiency and workplace experience across all sectors.
Sum up your hopes, fears and expectations for 2026: I’d like to see a stable economic backdrop that rebuilds confidence and drives transactional activity for occupiers, enabling businesses to secure space aligned with operational needs.
I expect the market to remain somewhat divided, with prime, energy-efficient assets in strong locations outperforming. Cost efficiency remains a top priority for occupiers and if we look to the office sector specifically, a move often comes at a price, with rising rents and inflationary pressure on build costs.
A constrained development pipeline means supply will remain finite, and companies looking for large, high quality buildings will find that choice is increasingly limited. Growth sectors such as data centres will continue to attract capital and occupier demand. The sharp imbalance between demand and supply will persist across the sector, fuelled by hyperscalers and neocloud companies.
Richard Bourne
CEO, Martin’s Properties
Sum up 2025 in one word: Successful/bifurcated/stodgy
Do you feel more or less optimistic than you felt 12 months?
More optimistic.
What do you think will be the key watchwords or industry trends in 2026?
Business rates/affordability, government policy/impact on investor appetite, government debt/impact on gilt rates, asset management, alternatives, income growth
Sum up your hopes, fears and expectations for 2026: In 2026 we expect there to be renewed activity across a number of markets in Central London and the regions. Market values have corrected quickly and found their new equilibrium. Debt is becoming more readily available for core and core plus assets and reducing interest rates will also bring the debt-backed investors back in to play alongside the already active overseas investors. This is likely to increase competition and drive activity levels.
As a cash investor with an agile internal team and board governance, we move very quickly for the right opportunities. We will continue to build on recent activity – sourcing new repositioning and investment opportunities for our prime mixed-use Chelsea portfolio and our prime regional portfolio focused on the retail warehouse and multi-let industrial sectors. We are also continuing to develop and grow our self storage business with additional sites in the pipeline.
We have increased confidence in our investment strategy for the year ahead as we believe there will be greater focus on our core assets given business rates changes set to impact offices and industrials, and an even higher emphasis placed on asset management as investors look to drive value in other ways.
Mat Oakley
Head of Savills commercial research
Sum up 2025 in one word: Stagnant
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic.
What do you think will be the key watchwords/industry trends in 2026?
Income and location.
Sum up your hopes, fears and expectations for 2026: We expect that income will remain the most important component of total returns over the next five years, and this will mean that careful stock selection will be more important than ever in terms of capturing the best of the recovery phase of this cycle. Investment volumes will be up around 10% again this year, and this will bring the UK to around £55bn of turnover in 2026. We do expect to see some prime yield hardening across most sectors, though this is more likely to be in the 25-50bps range in 2026 than the more typical 100+bps that we have seen in previous cycles.
Jenna Harris
Co-managing partner, Harris Associates
Sum up 2025 in one word: Growth
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic, specifically for co-living which is having its time in the sun with BTR being viability challenged and PBSA seeing occupational issues. Co-living is now a proven model, one that works and is scalable.
What do you think will be the key watchwords/industry trends in 2026?
Co-living. Co-living. Co-living.
Sum up your hopes, fears and expectations for 2026: We are very positive about 2026 given the calibre of opportunities and broad platforms we are bringing to the market across our sectors – PBSA, co-living, BTR and offices. We are currently piecing together creative sales campaigns for a selection of landmark schemes that we couldn’t be more excited to share with the market, produced by our in-house marketing team at Harris Studios.
In terms of fear, I am a believer that fearing things you can’t control is not a good use of energy. We always like to think strategically about what we can do, where opportunities lie and how to navigate difficult situations for our clients. As someone very knowledgeable once told me: “The best minds are created in the hardest markets”. We don’t shy away from challenges, we lean in – that is why we have had a record breaking year despite the difficult market conditions. In 2026, we are going to continue innovating for our clients, expanding as a company and increasing transactional volumes – all with our bespoke service in mind.
William Newton
CEO, WiredScore
Sum up 2025 in one word: Resilience
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic.
What do you think will be the key watchwords/industry trends in 2026?
Cyber security, resilience through technology and AI-ready buildings.
Sum up your hopes, fears and expectations for 2026: Cyber security is going to occupy the agendas of most, if not all, decision makers on 2026. Overall, the frequency of cyber attacks in H2 2025 was 58% higher than two years before and the real estate sector is much more exposed to cyber attacks than it thinks. With operational technology forming an integral part of how modern day buildings run, landlords need to sharpen up their focus on vulnerabilites that might be leaving their building compromised. It’s not a question of if a major attack will happen, rather when. It can mean building shutdowns, displaced tenants, legal exposure and lasting reputational damage.
What we see through WiredScore’s work is uneven maturity. Many buildings have policies in place, but far fewer test whether those policies actually work on the ground. As technology becomes core infrastructure, that gap matters. The upside is clear: buildings that treat cyber resilience as foundational perform better. That discipline increasingly shows up in value. Cushman & Wakefield’s Smart Premium analysis found that London offices achieving both WiredScore and SmartScore certification command rental premiums of 7.3%. Cyber resilience is not an IT issue. It is now part of how credibility, trust and long-term value are built into modern real estate.
Alan Pepper
CEO, Orega
Sum up 2025 in one word: Volatile
Do you feel more or less optimistic than you felt 12 months ago?
The same. I feel optimistic that there are opportunities for us as a business to grow, given the popularity and acceptance of flex space as a way to occupy property, but I’m concerned about the economic challenges ahead.
What do you think will be the key watchwords/industry trends in 2026?
Cost pressures (employment costs/business rates/taxes) will increasingly influence decision making as will economic uncertainty. This could delay or deter important decisions.
In terms of my industry, overall flex space will continue to expand as the positives of not being tied into cumbersome leases are recognised and flex gains further popularity.
We will see more small leasehold occupiers moving from traditional space to flex as it grows in recognition. We’ll also see an increase in the provision of managed space at the top end.
Sum up your hopes, fears and expectations for 2026: My hope is for economic growth. I hope businesses soak up the changes imposed by the budget and set to work to improve their own productivity. I hope the government has realised it can’t keep spending taxpayers’ money without tightening the belt on public sector spending. My fear is that the budget was not enough to reassure either business or markets and will put a dampener on growth. I fear we will have higher inflation fuelled by public sector pay rises and that the government won’t curb public expenditure. We could then see more tax increases next year to pay for this.
My expectation is that despite the above the flexible element of corporate real estate will continue to grow as it has in the last 25 years. We’ll see more mid and small sized occupiers moving into flex space and also the growth of managed space at the top end. There’s still a lot to play for.
Alastair Mullens
Managing director – residential, Canary Wharf Group
Sum up 2025 in one word: Unabating
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic.
What do you think will be the key watchwords/industry trends in 2026?
We’ll see growth and consolidation in the build-to-rent market, the impact of the Renters’ Rights Act on compliance and tenant experience, and greater operational efficiency driven by technology and AI. These factors will define a year centred on scale, regulation, and smart operations.
Sum up your hopes, fears and expectations for 2026: I’m hoping for more clarity and consistency from the Building Safety Regulator, particularly around Building Assessment Certificates and the Gateway process, to help streamline compliance and planning. My main concern is how the Renters’ Rights Act will be implemented and the potential unintended consequences for operators and residents. Despite these challenges, I expect continued growth across the living sector, with build-to-rent and similar models gaining traction as demand for quality rental housing remains strong.
Jennet Siebrits
Head of research, Ringley Group
Sum up 2025 in one word: Frustrating
Do you feel more or less optimistic than you felt 12 months ago?
I have the same level of optimism as I did this time last year. I just hope in 2026 my optimism is justified!
What do you think will be the key watchwords/industry trends in 2026?
I suspect we will hear a lot more around new towns, and home building. But I think there is going to be more and more around the need for power and infrastructure to support this. AI will continue to permeate the sector.
Sum up your hopes, fears and expectations for 2026: I would like to have a feeling of progression rather than stagnation. A sense we are going forward – even just slowly – and not the seeming stop-start which characterised 2025. I would welcome a greater sense of stability to underpin investment, both economic and political. Ideally, politicians across the spectrum would unite around common goals, particularly the urgent need for housebuilding. Yet the risk remains that polarisation will persist, with factions pursuing narrow agendas rather than collective progress.
Artificial intelligence will keep advancing, and adoption will accelerate. Right now, it’s relatively easy to gain a competitive edge because only a small share of users are truly proficient. But as AI tools become mainstream over the next year, more people will use them to streamline daily workflows, and that edge will narrow. The real differentiation will come from those who move beyond incremental efficiency gains and start exploring how AI can fundamentally reshape and reinvent their business models. Whether we will start to see this in 2026, I don’t know, but given the technological leaps and bounds we may start to see glimpses towards the back end of 2026/start of 2027.
John Maddison
Managing partner, Quadrant Estates
Sum up 2025 in one word: Disrupted
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. 2025 was ‘disrupted’ as a combination of geopolitical events, macroeconomic issues and the delayed UK budget meant there was seemingly always something standing in the way of investment. However, things look brighter now. The tariffs threat looks less severe than first feared. Lowering interest rates and hopefully closer to target inflation should mean better economic conditions and enhance the viability of real estate. This should mean a more certain path for investors in 2026.
What do you think will be the key watchwords/industry trends in 2026?
M&A could be a major trend as more real estate firms consolidate to drive operational expertise, efficiency, cost saving and access markets. Capital raising could remain tricky as investors employ more defensive strategies, making fundraising harder.
Sum up your hopes, fears, and expectations for 2026: I hope retail parks receive the wider audience attention they deserve as an asset class. Often overlooked by investors, in recent years they’ve shown they are resilient investments where the right asset management strategies can drive excellent returns. They are also attracting a broader range of occupiers than ever before, because their offer is more relevant to modern multichannel retailers than shopping centres. Better logistical integration with warehousing at the back to support e-commerce offers such as click & collect, is just one example.
The risk of geopolitical conflict, both economic and military unfortunately remains, and a destabilised UK government facing leadership challenges could add to investment and economic woes – but let’s hope not. We could also be in for a summer boost from an England men’s football World Cup win, finally, in Los Angeles!
Rachel Bradburn
Head of leasing, Redical
Sum up 2025 in one word: Impactful
Do you feel more or less optimistic than you felt 12 months ago?
There is no question that operating in the current climate is difficult. The recent Budget has shaken things up, so it’s no surprise people across the industry may not feel overly confident about the year ahead. However, we can only control what we can, so it is crucial that in the face of this sort of uncertainty we remain optimistic and evolve our strategy to match. This growth mindset is baked into how we operate at Redical. External factors play a part but ultimately, what is most important is how you respond in turn.
What do you think will be the key watchwords/industry trends in 2026?
Last year seemed to be defined by the sale and acquisition of multiple major retail destinations. A watchword we think we’ll be seeing more of is the concept of ‘core plus’ assets. The Liberty Romford is a prime example of this, as a destination that is dominant in its context, has a clear role and purpose, and has unrealised potential we’ve worked to harness. Over the year ahead, we anticipate conversations about these ‘core plus’ assets will come to the forefront, and when the time comes, we’ll be well placed to add to the narrative.
Sum up your hopes, fears and expectations for 2026: As the business continues to grow, with some exciting additions on the horizon, we remain aptly aware of the challenges the new year is due to bring. Redical is well equipped to take these on. Of course, the tenant mix at any destination remains a crucial element, as at the end of the day, consumers are who we work to reach.
Speaking from a leasing perspective, destinations are sure to continue down the path of diversification. Whether this be through the integration of more leisure, or by strengthening the presence of multiple categories that in turn provide variety. For example, we’ve observed that 70% of revenue comes from non-fashion and non-footwear related income, as people continue to want more out of a destination.
Sammy Pahal
CEX, UK PropTech Association
Sum up 2025 in one word: Consolidation – fewer experiments, more focus, rationalisation of tools and vendors and buyers becoming more selective, outcome-driven, and commercially disciplined
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic.
What do you think will be the key watchwords/industry trends in 2026?
Innovation, collaboration, modernisation, AI adaptation. Technology stack and integration: 2026 will be less about shiny new tools and more about coherent, interoperable tech stacks. Leaders will focus on rationalisation, integration and scalability – making sure systems actually talk to each other and support the business end-to-end.
Data foundations: the organisations that pull ahead will be those that have invested in clean, connected, well-governed data. Data maturity becomes the real differentiator – not just collecting more of it, but trusting it, sharing it, and using it confidently for decision-making.
AI: from experimentation to embedded value – AI will move out of pilots and proofs of concept and into everyday operations. The conversation shifts from “can we use AI?” to “where does it genuinely create value, reduce friction, or improve outcomes?” with far greater attention on governance, ethics, skills and change management.
Strategic innovation leadership (not innovation theatre): we’ll see a stronger divide between organisations that talk about innovation and those that lead it strategically. The latter will be characterised by clear ownership, empowered teams, a tolerance for learning, and innovation aligned tightly to business strategy – not siloed labs or one-off initiatives.
Sum up your hopes, fears and expectations for 2026: Hopes – that for 2026 we build on the real progress made during 2025 and that innovation becomes a core pillar of real estate modernisation, with stronger collaboration between the public and private sectors, especially around encouraging scalability. Scaling will be enabled by practical reforms in planning, transactions, housing delivery, and data/AI adoption and if we can keep doing this then the UK has a genuine chance to lead globally in proptech.
Fears – that some of the pressures, such as costs and longer sales cycles, which have been effectively contained during 2025 start to have a negative impact on innovation, and barriers to proptech reaching its full potential persist.
Expectations – that the government will continue to recognise the role that proptech increasingly has to play as a national economic lever and will continue to back innovation and support scaling through the enablement of practical reforms in planning, transactions, housing delivery and data/AI adoption. Also, that with the formation of Real Estate:UK next year, that innovation becomes a core pillar of real estate modernisation – with stronger collaboration and more outcomes-driven leadership.
Mansi Patel
Senior managing director, head of infrastructure debt, Principal Asset Management
Sum up 2025 in one word: Surging – Reflecting a year in which long-term infrastructure themes continued to build momentum amid a shifting macro backdrop.
Do you feel more or less optimistic than you felt 12 months ago?
Compared with 12 months ago, I would describe my outlook as more optimistic. Structural demand drivers, including digitalisation, AI adoption and the energy transition, have continued to strengthen, reinforcing the long-term case for private infrastructure. The need for essential infrastructure and long-duration assets with resilient cash flows supports a favourable outlook heading into 2026.
What do you think will be the key watchwords/industry trends in 2026?
Looking ahead to 2026, several themes are likely to define the private infrastructure landscape, including digitalisation and AI-driven demand, the global energy transition and demographic and urbanisation trends. Together, these forces are driving increased demand for assets such as hyperscale data centres, power and energy infrastructure, transportation infrastructure and reinforcing the role of private capital in addressing long-term funding needs. We expect these trends to influence capital allocation, asset selection, and the focus on assets with high barriers to entry and durable cash flows.
Sum up your hopes, fears and expectations for 2026: Looking ahead to 2026, we expect private infrastructure to remain a compelling investment opportunity, supported by powerful secular tailwinds. Continued digitalisation and AI adoption, progress in the global energy transition, and demographic shifts are driving sustained demand for essential infrastructure assets.
Our expectation is that private capital will play an increasingly important role in helping bridge long-term infrastructure funding gaps, particularly as public resources remain constrained. Assets with long-duration contracts, high barriers to entry, and resilient cash flows are likely to continue offering stability across economic cycles. In this environment, we believe a focus on downside protection, diversification across sectors and geographies, and disciplined underwriting, particularly within private infrastructure debt, will be key to achieving attractive risk-adjusted returns.
Alex Taylor
Senior vice president and head of Telford Living
Sum up 2025 in one word: Selective
Do you feel more or less optimistic than you felt 12 months ago?
I feel cautiously more optimistic than I did 12 months ago. While 2025 was undoubtedly difficult – with high financing costs, slow planning determinations and the realities of Gateway approvals becoming fully priced in – there is now greater clarity. That clarity favours credible developers with strong balance sheets and proven delivery records. The market is tougher, but it is also more discerning.
What do you think will be the key watchwords/industry trends in 2026?
Balance-sheet strength – the ability to absorb planning delays, Gateway costs and extended holding periods will increasingly separate winners from losers.
Credibility and track record – local authorities, regulators, funders and JV partners are placing greater weight on proven delivery capability.
BTR viability – build-to-rent remains structurally attractive but financially challenging, particularly once regulation, financing and build costs are fully reflected.
PBSA capital strength – purpose-built student accommodation continues to attract capital due to resilient income and strong returns, with a particular focus on London and other supply-constrained university markets.
Planning and affordable housing pragmatism – a more flexible, viability-led approach to affordable housing quantum will be essential if supply is to come forward at scale.
Regulatory fluency – developers who understand Gateway, building safety and compliance regimes will progress faster.
Quality over volume – design, sustainability and long-term operational performance as core value drivers.
Sum up your hopes, fears and expectations for 2026: My hope for 2026 is that the living sector continues its shift from adjustment to execution. Demand fundamentals remain strong, but delivery has become more complex and capital-intensive, particularly once planning and Gateway approval timelines are fully reflected. In that environment, I expect 2026 to favour developers with strong balance sheets, credibility and a proven track record of delivery.
Build-to-rent remains an important part of the housing mix but continues to face viability challenges, particularly where affordable housing requirements are inflexible. In contrast, PBSA remains popular with capital, underpinned by strong operational performance and returns, with London continuing to attract disproportionate interest due to deep demand and structural undersupply.
My concern is that continued rigidity in planning and affordable housing policy could suppress delivery across the living sector. Overall, I expect 2026 to be a year of measured progress rather than rapid recovery – with experience, financial resilience and pragmatic policy alignment critical to unlocking much-needed new homes.
Paul Ruddick
Chairman, Reds10
Sum up 2025 in one word: Change
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic.
What do you think will be the key watchwords/industry trends in 2026?
Undoubtedly, AI and the increased digitisation of construction. To date we’re only really scratching the surface of AI and I expect to see huge advances in its implementation across construction process in 2026. For construction to fully benefit from that revolution, standardisation and industrialisation of construction through a more programmatic approach will be vital, ensuring further productivity and performance benefits.
We’re also going to see a shifting focus from Gateway 2 to Gateway 3 – the stage where work is completed and certified. By enforcing compliance with approved plans, Gateway 3 will drive investment in skills and training to deliver work to the highest standards. This should reduce reliance on agency labour and a greater focus on building a properly trained, in-house construction workforce. At Reds10, this is our model: bringing everything in-house to ensure quality, innovation and productivity. We believe this approach is the future.
Sum up your hopes, fears and expectations for 2026: In 2026, Reds10 will accelerate our expansion into the health and residential markets. We see huge potential for industrialised construction to deliver high-quality, affordable housing and temporary accommodation, supporting local authorities in tackling the housing crisis. Previous modular housing efforts failed due to over expansion without proven processes. Our approach is measured: five factories in Driffield, North Yorkshire, a committed pipeline, and experience from armed forces accommodation underpinning the development of our prototypes for local authority housing. We’re confident this will showcase the true potential of industrialised construction to address Britain’s housing challenge.
We’re equally energised by the government’s multi-billion-pound New Hospital Programme (NHP). Last year, Reds10 unveiled a modular hospital in-patient bedroom prototype to drive Hospital 2.0. If adopted, it will become the standard across the NHP, providing the NHS with an MMC solution that will accelerates the delivery of the next generation of hospitals. This industrialised process boosts productivity, quality and sustainability while delivering better value. The NHS and its supply chain are building a programmatic system that promises to transform hospital construction for decades.
Paul Rickard
CEO, Pocket Living
Sum up 2025 in one word: Expectant
Do you feel more or less optimistic than you felt 12 months ago?
Less optimistic.
What do you think will be the key watchwords/industry trends in 2026?
Viability, grey belt, national housing bank, new towns.
Sum up your hopes, fears and expectations for 2026: Hopes – that for 2026 we build on the commitment to housing delivery and positive policies put forward in 2025, going further and more boldly, to really embed housing delivery as the very top priority for government and growth. This especially includes continued support for the SME housebuilding sector and the integration of housing, and housing supply, within the government’s wider industrial strategy. Also, to see more being done to encourage the development of innovative new types of tenure, as well as measures to assist first-time buyers in getting onto the property ladder.
Fears – that economic activity won’t pick up significantly due to continued fiscal constraints holding back growth and further delaying what might be perceived as politically difficult decisions. This translating through to weaker consumer confidence, especially for first-time buyers, and ongoing pressure on renters due to a combination of flatlining wage growth and housing costs continuing to rise. Also, that having taken the difficult decisions over planning reform, the government isn’t able to apply the same tenacity to address the other barriers to delivery.
Expectations – that the government will continue to work openly and proactively with the industry, especially the SME sector, but will be facing some very difficult trade-offs when supporting housing growth from both a public spending and political perspective.
Harriett Renny
Leasing director, Battersea Power Station
Sum up 2025 in one word: Resilient
Do you feel more or less optimistic than you felt 12 months ago?
There is a greater sense of optimism for the year ahead than where we were 12 months ago. Despite some headwinds in the property market, at Battersea Power Station, we have welcomed 25 new brands to the neighbourhood this year and hosted over 100 commercialisation pop-ups, demonstrating that brands are still prepared to invest in having a physical presence at destinations which offer unique retail, leisure and cultural experiences. We’re confident that our mixed-use offering and sense of place will continue to resonate with occupiers, residents and visitors, even in a more selective market.
The riverside neighbourhood continues to grow at pace and is now home to over 150 shops, bars, restaurants, fitness and leisure venues, more than 3,000 residents and approximately 7,000 people working on site each day. However, we are only half way through the development of the Battersea Power Station masterplan and looking ahead we are excited to continue the evolution of the neighbourhood with the future phases, which will expand the mix of shops, restaurants, leisure and cultural offerings, as well as housing. In early 2026, we will begin construction of the next phase of development, which will consist of 306 new homes, including later living apartments, a new community hub and additional retail space, designed by the late Frank Gehry.
What do you think will be the key watchwords/industry trends in 2026?
The influence of AI on occupier and consumer decision making will become more of a focus. How people discover destinations, choose where to spend their time and interact with places is evolving rapidly, and the industry will need to adapt quickly to capitalise on the innovation.
Authentic social impact will increase in importance as a critical differentiator of successful destinations. Meaningful community engagement and social value initiatives are now fundamental to creating a credible sense of place, building trust and sustaining long-term demand from occupiers, residents and consumers alike.
There’s no slowing down of the experiential economy with an increasing number of destinations incorporating this into their offering as consumers expect more from their retail and leisure experiences. At Battersea Power Station, this is at the heart of our offering, having built a new destination around one of London’s most iconic landmarks. Health and wellness is proving to be a key sector driving the latest experiential offerings on the high street, be that Pilates, cryotherapy or high quality health clinics, supported by a strong mix of athleisurewear brands and large areas of public realm, that will help to drive dwell time from consumers, residents and office workers.
Sum up your hopes, fears and expectations for 2026: I hope that economic recovery will gather momentum and that, as a result, consumer confidence will increase to support demand across retail. Moreover, a more positive economic backdrop would enable both retail and office occupiers to plan with greater certainty and invest in creating high quality customer experiences and workplaces.
I also expect that employers will remain focused on re-engaging people in the office by selecting office locations which offer more than just workspace. Amenity-led environments, access to green space, strong food and beverage options and an active programme of events will be critical in attracting and retaining office occupiers.
Robin Woodbridge
Senior vice president, head of capital deployment UK, Prologis UK
Sum up 2025 in one word: Strategic
Do you feel more or less optimistic than you did 12 months ago?
More positive. In 2026, demand will continue to centre on modern, well located logistics space that is efficient, sustainable and power-ready.
What do you think will be the key industry trends in 2026?
E-commerce acceleration – online retail in the UK will continue its upward trajectory as consumers expect quicker delivery and flexible returns. International retailers and parcel operators will keep expanding their networks, driving demand for well-located, high-specification space. Asian e-commerce players that previously focused on US growth are now scaling across the UK to support cross-border fulfilment, while major global operators such as Amazon continue to expand across Europe.
Tight supply, strong demand – the UK remains one of the world’s tightest logistics markets. High construction costs and restrictive planning policy will limit new supply through 2026. Prologis Research estimates that Europe needs around €150bn of new logistics space to close the structural supply gap. To meet demand, our focus will stay on delivering high-quality schemes in the right locations.
Powering the next generation of logistics facilities – reliable, high-capacity power will be central to customer decision making in 2026. Automation, data-heavy operations and electrified transport are increasing demand for secure grid connections. As power-ready space becomes scarce, developers will respond with on-site generation, micro-grid solutions and stronger electrical infrastructure to future-proof facilities.
Sum up your hopes, fears and expectations for 2026: Industrial logistics is now recognised as critical national infrastructure. In 2026, the sector will support growth, strengthen supply chains and help the UK cut carbon. Logistics will create skilled jobs across the regions and underpin a more resilient, lower carbon economy. The next phase of growth will be defined by facilities designed for efficiency, close to demand, built for productivity and optimised for lower energy use.
Michael Dean
Director and co-founder, Avamore Capital
Sum up 2025 in one word: Reset
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic – but not because I expect the market to materially improve. I think we’ll see more of the same: sticky inflation, expensive debt, and a cautious equity environment. My optimism comes from within. We’ve built a strong leadership team – starting with Greg and Jacob – and combined with the strides we’ve made in tech, we’re in a far better position to navigate whatever 2026 throws at us.
What do you think will be the key watchwords/industry trends in 2026?
Capital discipline. Selectivity. Automation. Risk repricing. Confidence may return, but the fundamentals haven’t changed: debt is still expensive, equity still wary, and margins remain tight. Lenders will prioritise quality over quantity, while the better platforms – those that have invested in tech and talent – will start to pull ahead. Developers will need to stay lean, adapt product to local realities, and structure more creatively.
Sum up your hopes, fears and expectations for 2026: 2026 will likely feel like more of the same. Some confidence will return… rates may drift down to the mid-threes as disinflation continues; but underlying challenges will persist. Rising unemployment, government instability, and the potential for a fiscal wobble by the next Budget will weigh on sentiment.
Property-wise, we expect continued bifurcation: residential should hold up, but performance will be highly location and product specific. First-time buyer stimulus is overdue, while a so-called “mansion tax” could ironically aid mobility at the top end. Industrial will keep ticking over; offices will remain polarised…either thriving or struggling, depending on quality and location. I also expect to see more data centre conversions as viability shifts for secondary retail warehouse and office stock.
At Avamore, our focus is on navigating this cautiously – but confidently. We’re better positioned than ever thanks to a strong leadership team and the platforms we’ve built. We don’t expect tailwinds, but we do expect opportunities. Our hope is that rationality wins out. Our fear is that we return too quickly to short-termism. Either way, we’re prepared.
Vanessa Murray
Co-founder and director, The Circle Partnership
Sum up 2025 in one word: Challenging
Do you feel more or less optimistic than you felt 12 months ago?
The same.
What do you think will be the key watchwords/industry trends in 2026?
Fractional roles/intrapreneurship vs entrepreneurship.
Sum up your hopes, fears and expectations for 2026: Hopes – I hope through our work at The Circle Partnership that we start to see expedited progress in retaining women at mid-level roles across the built environment. This is where too much talent is lost – quietly and preventably. Our focus on training and development, community and mentorship aims to create an environment where women can thrive, progress and lead.
Fears – change still feels slow. The built environment remains one of the industries where diversity initiatives are often first to be cut when budgets tighten. That pattern worries me. I’m also concerned about the wider political climate, particularly in the US. Regressive narratives there have a habit of crossing borders and influencing policy here could undermine hard-won progress.
Predictions – despite these challenges, I expect to see a rise in female leadership and also entrepreneurship. More women are building businesses and defining leadership on their own terms. Fractional and portfolio-style roles will also gain traction, offering flexibility and breadth that traditional career paths rarely provide. These shifts could unlock new opportunities for women and reshape leadership in the sector.
Neil Seager
Managing partner, Haslams Surveyors
Sum up 2025 in one word: Waiting
Do you feel more or less optimistic than you felt 12 months ago?
Broadly the same – there should be an improvement going into the new year but when is the question.
What do you think will be the key watchwords/industry trends in 2026?
Planning system as with every year needs changing. Business rates revaluation on top of the new super threshold. Confidence returning to the safe sectors – industrial and alternative markets. Super prime office market
Sum up your hopes, fears and expectations for 2026: I look forward to a swift return to a market driven by facts, well researched strategy and appraisals rather than sentiment. However, I suspect this may not happen until spring, as business planning will dominate the early part of the year. I also anticipate heightened political turbulence both domestically and internationally – which could further restrain market momentum.
Specifically in the Thames Valley, I expect a wave of new industrial developments coming to market. This will help reinforce prime rental levels in areas that have struggled due to limited supply in recent years. Asset management within this sector will become increasingly nuanced as we transition back to a more normalised market following the post Covid surge. The office market is set to become increasingly polarised, with a continued flight toward prime even super prime properties and locations. Repurposing older stock will persist where planning permissions and financial viability allow. In some cases, it will not.
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