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 three!
Mark Swetman
CEO, LS Estates
Sum up 2025 in one word: Polarised
Do you feel less or more optimistic than you felt 12 months ago?
I feel more optimistic. Twelve months ago, we were still waiting for prices and debt costs to settle after their decline. Now, inflation is easing, rate cuts are expected and leasing activity in Central London is ahead of last year, though still below long term norms. Prime, well located, ESG-compliant assets are achieving near-record rents, while secondary, non-compliant stock continues to soften and reprice. I’m more confident about underwriting risk, but only for the right assets: best-in-class buildings, or those where we can genuinely deliver that standard through deep retrofit. Planning, however, remains a rollercoaster.
What do you think will be the key watchwords/industry trends in 2026?
Refinancing and recapitalisation will be front and centre – both are the real test for highly leveraged owners. Interest rates should ease, but the zero rate world is gone for good. Also, “Retrofit or forget” will define the market as the brown discount becomes entrenched and more capital targets tired stock for repositioning.
Finally, partnership capital will grow, with more club-style deals between operating platforms and institutions, aiming for relatively low-risk, 10%+ IRRs through value-add and repositioning rather than pure yield compression.
Sum up your hopes, fears and expectations for 2026: In 2026, I want to see the market shift from paralysis to action: a more stable debt market, transparent pricing between green and brown assets, and enough capital to fund genuine deep retrofits, not just box-ticking ESG. If that happens, London can lean into its structural strengths: a deep talent pool, global capital, and a limited supply of truly prime space.
My biggest concern is policy drift: planning, net zero and building safety rules that remain complex yet unpredictable. That uncertainty risks slowing the very redevelopment the city needs. I’m also wary of a long tail of semi-obsolete buildings where owners delay tough decisions and prolong the workout phase.
My base case is a continued two-speed market. Prime, compliant buildings should see modest rental growth and some yield compression as rates fall, while secondary stock keeps repricing or shifts to alternative uses. Transaction volumes should improve on 2024–25, but it will remain a market for prepared, specialist capital rather than tourists.
Victor Librae
Chief executive, Firma Partners
Sum up 2025 in one word: Turbulent
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?
Two themes will dominate 2026: delivery capability and adaptability. On the development side, the industry will pay close attention to the developers who have successfully navigated the Building Safety Act Gateway process and how. Key lessons from those schemes is that early lender engagement, realistic build programmes and well-capitalised sponsors matter. Projects stall when Gateway is treated as an administrative hurdle rather than a core part of delivery planning.
Residential values should see renewed momentum if interest rates continue to ease, with regional markets likely to outperform London on the pace of growth. Affordability dynamics and relative value favour the regions, while London’s house price growth increase will be steadier rather than sharp.
In commercial real estate, the polarisation of the office market will continue. Conventional offices are being left behind, while demand concentrates around highly specified, technology-enabled, ESG-led and amenity-rich space in well-connected locations. Policy will also continue to shape outcomes. Proposed mansion tax reforms and strengthened tenant rights will increasingly influence pricing, underwriting and exit strategies, requiring investors and lenders to think more carefully about long-term cash flow resilience rather than short-term valuation uplift.
Sum up your hopes, fears and expectations for 2026: My hope for 2026 is that we see a continued, orderly decline in base rates. A measured easing would support GDVs, borrower confidence and exit liquidity without creating new imbalances. Sudden or aggressive moves would risk unsettling markets rather than stabilising them.
From a business perspective, I expect Firma Partners to continue evolving into a multi-strategy real estate credit platform. Alongside development finance, we aim to expand into risk-adjusted senior lending, stabilisation and transitional loans, with the longer-term ambition to offer JV equity and third-party mezzanine solutions where appropriate. That breadth allows us to support projects across their full lifecycle.
My concerns are largely macro and regulatory. Exit liquidity could remain challenging in parts of the market, particularly if capital remains selective or policy uncertainty persists. Further changes to tenant rights legislation may also weigh on exit values if not carefully balanced. Finally, ongoing planning and regulatory shifts remain a risk. Frequent framework changes make delivery harder and reinforce the importance of experience, realism and flexibility in both development and lending decisions.
Chris Sargent
Managing director, real estate UK, Turner & Townsend
Sum up 2025 in one word: Transformative.
Do you feel more or less optimistic than you felt 12 months ago?
There are signs of recovery which are giving more cause for optimism than we’ve seen in the past couple of years. Momentum is building in key sectors and, despite the tough conditions likely to continue in 2026, there are certainly opportunities for the businesses which can adapt to and navigate market challenges.
What do you think will be the key watchwords/industry trends in 2026?
The fight for skilled people is still intensifying and, while there have been new pressures put on employers this year, this shouldn’t deter investment in talent, especially in apprenticeships and in digital upskilling.
Digitalisation, AI, data, and automation are rapidly moving from pilot to mainstream, and becoming standard to drive productivity, transparency and value in major programmes – and that will only grow through 2026.
Linked to this, I expect to see increasing appetite for alternative, more collaborative delivery models and the benefits they bring – such as project management consultancy (PMC) and integrated delivery teams – to manage the demands of complex programmes, to share risk and reward and ultimately to unlock value.
The definition of that ‘value’ is continuing to evolve, including around sustainability, with our sector likely to see more demanding net zero strategies and circular construction methods shaping project delivery.
Sum up your hopes, fears and expectations for 2026: I expect demand will strengthen throughout 2026 as the government works to speed up the planning process and boost productivity My hope is that the industry takes this opportunity to build on the hard-won lessons of recent years – to accelerate digital transformation and progress around sustainability, and to increase momentum around the positive impact our industry has.
Persistent inflation, skills shortages and political uncertainty are certainly still concerns and put at risk consistent investment decisions and the smooth running of critical projects. Focusing on and investing in innovation, collaboration and talent development will be crucial to steering the course around the barriers to come, to driving productivity and efficiency across projects, and to getting evasive growth off the ground. That’s exactly where we’re focusing our own resources to ensure we can continue to adapt and support our clients to succeed.
Vicky Cotton
Head of sustainability, Workman
Sum up 2025 in one word: Challenging
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. Despite negative connotations being ascribed to ESG, and some geopolitical headwinds, we’ve weathered the storm. Our clients – including the biggest funds – are moving from just talking about their commitment to sustainability to actually doing it. They are taking concrete, measurable action. In real examples, we are making net zero asset plans and we’re mapping them to asset strategy, we’re mapping them to fund strategy. There’s a real shift towards more performance-based reporting, with long-term plans for measurement, rather than just pieces of paper or badges. That tangible progress gives me confidence for what’s ahead.
What do you think will be the key watchwords/industry trends in 2026?
Climate resilience, measurable performance, and a shift from “ESG” to “sustainability” as both a term and practical driver of action. The focus is increasingly on holistic, practical steps; prioritising performance-based outcomes that align with an asset’s business plan, over certification or policy alone. Our clients are measuring climate risk and asking how we manage that risk. Five years ago, it was all about “making a plan.” This time around it’s all about getting a plan and actioning it straightaway.
Sum up your hopes, fears and expectations for 2026: My hope is that we see clear, consistent targets from government to guide the industry, particularly as we draw closer to the 2050 net zero deadline. Where consistency is lacking, I believe our clients will continue to lead by example, focusing on measurable impact and accountability. My main fear is that, without a reset and renewed transparency, such as publishing industry-wide metrics and mapping true progress, we risk falling behind our long term ambitions. I expect 2026 will be defined by a collective shift from words to action: from planning and certification to demonstrable results, and from “ESG” as a label towards true sustainability and resilience as a core business imperative.
Tom Woolven
Lead asset manager, The Knightsbridge Estate
Sum up 2025 in one word: Resilience
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. International demand has grown, competition for good units has increased and retailers are showing real confidence in London’s best locations. Knightsbridge has felt this especially strongly, with our stretch of Brompton Road fully let and several global brands looking for opportunities. It’s a clear sign that London continues to have pulling power and retailers will compete for the right space in the right locations.
What do you think will be the key watchwords/industry trends in 2026?
Wellness going truly mainstream. It’s now a key part of the luxury offer, with new concepts emerging as affluent and savvy customers look for experiences that feel personal, restorative and different. Beauty will remain another big driver and Space NK’s success in a crowded market is just one example of how much more proactive customers are being about taking care of themselves.
Sum up your hopes, fears and expectations for 2026: Hopes – that international confidence continues and we see even more innovation from wellness and beauty brands entering the UK market. Fears – the unexpected. Demand for London is clear – the risk is external factors slowing momentum. Expectations: Knightsbridge will continue to attract global brands and competition for the best space will stay strong, driven by customers who want high quality, experience-led destinations.
Dav Bansal
Partner, Howells
Sum up 2025 in one word: Unpredictable
Do you feel more or less optimistic than you felt 12 months ago?
We’re feeling more optimistic, but just as cautious. The last 12 months have improved on 2024, yet not nearly to the extent we’d hoped. What was once about surviving 2024 for a 2025 rebound has become surviving 2025 and preparing for a slow recovery over the next five years.
What do you think will be the key watchwords/industry trends in 2026?
Funding remains constrained, in particular for the regions with lenders and investors staying cautious and in some cases, withdrawing from their current agreements. However, we are hoping to see more ambitious pension funds and institutional investors begin to lean into longer-dated returns with a gradual recovery rather than a snap-back.
Public funding-led housing delivery becomes a major catalyst, especially as viability still remains stretched and a more pro-active planning environment is expected, alongside incremental easing in navigating of Building Safety gateways. Delivery at pace and scale, not just approvals will become the focus. Renewed growth in public private partnerships, particularly in secondary and tertiary cities and towns. In summary, 2026 is about building faster, smarter and with more accountability.
Sum up your hopes, fears and expectations for 2026: My hope is to see a more sustainable recovery within the UK market with organisations focussing on delivering quality of place with integrity and credibility that supports local businesses and communities. In the West Midlands, the opportunities for transformative regeneration are at a high with huge investments being announced from both public and private sectors, however the change on ground seems to be lacking due to several funding, political and market led issues. I do hope 2026 is the year of pragmatic decisions, not another year of ideological strategies.
I also hope for a steady return of responsible investors taking a longer term view on opportunities and working collaboratively with the public sector to ensure infrastructure leads regeneration. Too often, projects stall shortly after planning, as increased due diligence is required from all parties to provide greater certainty in an increasingly uncertain world. However, where we do deliver high-quality housing, workplaces, and educational environments, there is always strong underlying demand to support long term success.
I hope that in this challenging environment, we can be bolder and more innovative by embracing ideas and creativity that drive different outcomes, rather than simply squeezing more from the same formula for our cities and towns.
Nic Durston
Chief executive of South Bank Employers’ Group and South Bank BID
Sum up 2025 in one word: Authenticity. After years of disruption, 2025 has been a year where the industry has started to look beyond surface-level recovery and ask deeper questions about what makes places actually work and succeed. There is a growing recognition that you cannot design or brand your way to success without real civic and community life happening alongside commercial activity.
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. There is a noticeable shift in how regeneration and placemaking are being discussed. Twelve months ago, the focus was still heavily on recovery. Today, there is more confidence to talk about long term stewardship, collaboration and identity. Places are starting to be judged less on how quickly they can be delivered and more on how well they function over time, and the social and environmental gains that arise from good planning and investment.
What do you think will be the key watchwords/industry trends in 2026?
We are moving away from the idea that successful places can be manufactured through design or branding alone. Governance and place management is becoming more important, particularly models that bring public and civic bodies, cultural institutions, businesses, resident and community groups into the same conversation. Authenticity grows out of lived experience and layered uses, and 2026 will be the year that distinction really matters.
Sum up your hopes, fears and expectations for 2026: I hope the industry continues to recognise and embrace what makes successful places work and grow. Progressive models of governance and place-based management supports this dynamic, by creating the space for collaboration and long term leadership across commercial, community, civic and cultural sectors.
The lesson from places like South Bank is that identity cannot be imposed. It develops where people and organisation live, learn, work and create side by side, through dialogue and debate. That is what gives neighbourhoods resilience and meaning. There’s a risk that new districts prioritise coherence and control over diversity and everyday use, leaving them polished but somewhat hollow. My hope is that places with strong convening structures and a clear shared vision will be best placed to navigate the pressures ahead. In 2026, stewardship and governance will matter just as much as design and investment.
Roger Young
Head of operations, centre:mk
Sum up 2025 in one word: Collaborative
Do you feel more or less optimistic than you felt 12 months ago?
2025 demonstrated that when retailers, centre teams and landlords work together, sustainability stops being an afterthought and becomes something truly doable. The progress we’ve made this year gives me more confidence than ever in what we can achieve as a sector. We’ve seen just how powerful shared responsibility and collaboration can be, so I am definitely feeling more optimistic.
What do you think will be the key watchwords/industry trends in 2026?
Collaboration, accessibility and measurable impact. As the industry moves towards sustainability and ESG-first approaches that feel achievable rather than overwhelming, we expect to see more platforms, partnerships, and campaigns that focus on simple actions that create large-scale transformation. At centre:mk, the investment we have made in advancing our ESG strategy has delivered significant, measurable returns. We hope our success will continue to demonstrate to others how important and achievable this work is. As a result, transparency and shared learning will also be central in the coming year.
Sum up your hopes, fears and expectations for 2026: I hope that the progress centre:mk made this year – particularly through initiatives like our ‘Stickerbook’ platform and the wider ‘Little Things’ campaign – continues to inspire more destinations to adopt accessible, engaging approaches to sustainability. We have shown this year that small changes can collectively redefine how an entire ecosystem thinks and behaves.
My biggest fear is that the sector may lose momentum if sustainability is treated as a temporary trend rather than a long term shared responsibility. Permanent change requires teamwork, aligned goals, and the willingness to learn and adapt together. But overall, my expectations are positive. I believe collaboration will intensify, and that centres like ours will continue leading by example, championing initiatives that make sustainability not just achievable, but embedded in the way the retail industry evolves.
Sabrina Klor
Chair, Women in Architecture and CEO of 10 Design
Sum up 2025 in one word: Reset
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. The past year has forced difficult but necessary conversations across the industry, and there is now a clearer understanding that old models are no longer sufficient. That clarity, while uncomfortable, is a positive step forward.
What do you think will be the key watchwords/industry trends in 2026?
Accountability, adaptability, digital maturity, inclusive leadership, and long term value creation.
Sum up your hopes, fears and expectations for 2026: My hope for 2026 is that we translate intent into measurable outcomes, particularly in how we develop leaders, retain talent and build genuinely inclusive cultures. Progress will be defined not by statements, but by who is at the table and how decisions are made. My concern is that continued economic pressure may tempt some organisations to retreat into short term thinking, using uncertainty as a justification to slow investment in people, culture, and responsible design. That would be a mistake.
My expectation is that the practices that succeed will be those that lead with purpose, embrace change, invest in the next generation and recognise that diverse leadership and sustainable thinking are fundamental to resilience, performance and long term relevance.
Wybo Wijnbergen
Co-founder and CEO, infinitSpace
Sum up 2025 in one word: Transformative
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic, definitely. As a company, we’ve welcomed brilliant new hires, expanded internationally and grown our portfolio of locations, so we’re on firmer footing than last year and poised to accelerate our growth. The bigger picture is more positive as well – political and economic turbulence has subsided in recent months, which is allowing organisations to plan more effectively and have greater confidence in executing those plans. That growth makes its way into the office and flexible workspace markets, just as it does across most other industries.
What do you think will be the key watchwords/industry trends in 2026?
AI will remain centre stage. It dominated industry discussions in 2025, and I only see that continuing next year. More AI products will come to market and, more poignantly, more organisations across the real estate sector will look to develop and deploy their own AI tools. It’s hard to look beyond this as a defining trend for 2026. In commercial real estate, I think another key trend will be the evolution of how corporates use workspaces. We are seeing enterprise clients as a major driver of growth in the flexible workspace market; it will be something to watch keenly next year.
Sum up your hopes, fears and expectations for 2026: My hope is that, as an industry, we continue to find ways to make a positive impact on people’s lives. Interest rates, margins, regulation, access to talent, supply chain costs – there are so many negative topics dominating conversations across real estate, and this can distract from the core purpose most organisations in the built environment share: delivering spaces that create genuine value for people and communities.
My fear is inaction; inertia as the same defining pressures and challenges of 2025 roll into 2026. Pressure on models, finances, and growth can easily lead to caution, short term thinking and missed opportunities.
But my expectation is progress. I expect to see more decisive leadership, more collaboration, and a continued shift towards flexibility as infrastructure rather than experiment. In particular, I expect the flexible workspace market to keep growing and maturing, with more CRE landlords buying into the journey – not just as observers, but as active participants in shaping the future of work.
Hannah Smart
Director, edge Urban Design and chair, Urban Design Group
Sum up 2025 in one word: Alignment
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?
Human, AI, strategic development strategies.
Sum up your hopes, fears and expectations for 2026: My hope is that our industry embraces kindness to shape conversations to be human and compassionate, alongside ambitious and innovative. Urban Design is about joining people together and recognising that the best places, like the best teams, are made of many hands, many types and many perspectives, each playing their part so that the whole is greater than the sum of all the parts.
My fear is less about failure, more about drift, ensuring that we don’t lose the thread of why we do the work that we love, or let pace and expectation push aside creativity and joy. It’s important for all of us to remember that burnout can be disguised as ambition, and that remembering our own wellbeing serves our teams and clients better than focussing solely on results.
My expectation is that 2026 will ask for us to be present and choose wisely. It will require us to trust our judgement, back others, and accept that not everything needs to be solved immediately. If we can stay aligned to our values, nurture our energy, and keep human curiosity at heart, 2026 can push us gently out of our comfort zones to a place of meaningful growth.
Andrew Boyd
Senior partner, Allsop
Sum up 2025 in one word: For Allsop: ‘tenacity’.
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. 2025 was a flat year, albeit one in which we outperformed, and we’re heading into a better environment.
What do you think will be the key watchwords/industry trends in 2026?
We’ll see the continued return of larger transactions across all sectors and more consolidation in the residential space.
Sum up your hopes, fears and expectations for 2026: The first hope of everyone in the property sector has to be that the government and the Bank of England will create a stronger and more stable environment in which to do business. Much of the second half of 2025 saw unnecessary uncertainty and delays, which we can’t have again if we in the private sector, and particularly in the real estate industry, are to continue driving growth – key to so many of this government’s central priorities.
My fears are that continued red tape around planning, development viability and the Building Safety Act will continue to present challenges to the market. We are seeing intent but it’s not manifesting itself on the ground as yet. My expectation – optimistic but realistic – is that investors in real estate will buck the overall growth outlook for the UK. People have had enough, recognised the new normal and are preparing to roll up their sleeves to make things happen. We as an industry have a very proud heritage of that. 2026 can and should be a year of opportunities.
Darren Williamson
Partner, Freeths
Sum up 2025 in one word: Better
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?
Watchwords – agentic, hyperscale, accretive. Trends – continued change around the high streets. BTR on the rise. Hotelisation of the office and BTR
Sum up your hopes, fears and expectations for 2026: My fear is that Rachel Reeves goes too far with taxes and damages more than she repairs. My hope is that Labour realise that deregulation, whilst challenging, is a free pass to economic growth and my expectation is that neither will happen and we will fumble along neither being bold or smart, our industry continuing through 2026 in a semi-stagnant state. Although, even in that state their is opportunity and if the industry works together it can still thrive… Bold, smart and together are our core values at Freeths and living those I also hope we navigate 2026 with our clients as well as we navigated 2025.
Matthew Chamberlain
Director, Ayre Chamberlain Gaunt
Sum up 2025 in one word: Intense
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic (cautiously).
What do you think will be the key watchwords or industry trends in 2026?
Resilience, capacity, affordability. More and more retrofit and a strategic shift towards designs that facilitate maximum adoption of MMC.
Sum up your hopes, fears and expectations for 2026: I hope as a society we commit to a move away from short term solutions for long term problems, particularly with respect to housing, health, education and social care – all of which are inextricably linked! With such huge figures spent on temporary housing alongside various other quick fixes, I hope there is realisation intelligent investment could drive a virtuous circle of security, wellbeing and prosperity in the long term.
I fear political instability and I’ll leave it there. Things could get more challenging, through to very dark in 2026. My expectation is it will be another year of low growth, with much talk of a coming surge in activity that won’t quite materialise. I’m expecting a year of juggling opportunities and ambitions with a close eye on overheads, manoeuvring our business into the right shape and markets ready for lift off in 2027.
Robert Stark
Senior executive director – head of clients, MAPP
Sum up 2025 in one word: Adaptation
Do you feel more or less optimistic than you felt 12 months ago?
The office market did not perform quite as well as we hoped at the beginning of 2025 but there are now signs of recovery. This environment has encouraged asset owners to think more creatively about boosting the financial performance of their existing assets and we have seen the leveraging of a range of factors, from more flexibility around leasing structures through to boosting the occupier experience, sustainability credentials and building technology. Another encouraging development is the strong performance of mixed-use campuses, particularly in London, with estates such as Broadgate, London Bridge City and the Portman Estates doing well from the ongoing demand for prime locations.
What do you think will be the key watchwords/industry trends in 2026?
In the commercial property and asset management space, the role is evolving to meet the growing demands for service, operational excellence, ESG improvement and investor alignment, all with the aim of achieving greater operational harmony. This evolution is becoming increasingly critical to the success and valuation of buildings and portfolios.
Sum up your hopes, fears and expectations for 2026: It’s encouraging that sustainability and social value continually evolve as important arms of the property management and placemaking process, especially as usage patterns shift and the climate warms. This goes beyond energy efficient buildings, biodiversity infrastructure and renewable energy sources to include maintaining good relations with neighbours and boosting the local economy. This is important to the long term health of the UK’s key office and mixed-use campus locations, as important economic drivers for the UK.
Jon Seal
Managing Director, technologywithin
Sum up 2025 in one word: Adaption
Do you feel more or less optimistic than you felt 12 months ago?
I feel just as optimistic as I did 12 months ago. I’m confident that the flex workspace market has a strong future. But like many emerging markets, the bumps and curves in the road make the journey to market maturity both challenging and interesting. As a tech provider to flex, agility in our adaption of new challenges and problems has never been more critical than now.
What do you think will be the key watchwords/industry trends in 2026?
Agility, adaption, efficiency, scalability.
Sum up your hopes, fears and expectations for 2026: Flex operators have had to tackle the change of work post-pandemic quickly and reactively – along with carrying the heavy costs of near zero occupancy at the time – and then huge inflationary increases to overheads as the return to office debate rages (stronger in some countries than others). Many flex operators are run by entrepreneurial leaders that flourish in these types of environments. But these head winds, coupled with the significant potential changes in taxation, will see some market consolidation for those operators that simply can’t find the operational scale to make ends meet.
Process, efficiency, understanding and scalability will be, as it has been in 2025, critical for flex operators’ success in 2026. For technologywithin, continuing to provide solutions and innovation that underpin these needs, coupled with a collaborative delivery and support culture, will maintain our relevance and value to the sector. My big fear would be short sighted changes to how flex workspace is to be valued, assessed and ultimately taxed, resulting in a collapse of a sector that’s been at the forefront of positive change for everyone’s working lives.
Sharon Mathieson
Partner, Hägen Wolf
Sum up 2025 in one word: Exciting
Do you feel more or less optimistic than you felt 12 months ago?
Quietly optimistic.
What do you think will be the key watchwords/industry trends in 2026?
England and Wales are experiencing some major built environment sector shifts, with the likes of the Renter’s Rights Act and Building Safety Act. It will be interesting to see if the Renter’s Rights Act increases housing standards, and perhaps creates a move to professional rental companies, with an increase in the build to rent sector. It will also be interesting to see whether regulators can grapple with construction delays, in the wake of the implementation of the Building Safety Act!
Sum up your hopes, fears and expectations for 2026: I launched Hägen Wolf’s Newcastle office in July this year and it seems as though we’ve landed in the North East during a period of quiet optimism. It feels like there is a growing momentum in the built environment across Newcastle, Sunderland, Durham and Teesside, in both the residential and commercial property sectors. This is creating a collective energy for regional businesses, and the public sector, with a joint approach to driving investment.
Sustaining that energy and momentum in the North East should not be a problem (many individuals feel personally vested in the north-east). In my view, the challenge for the built environment to continue on its current trajectory, is the need for investment in infrastructure (such as transport), and resource. Continued regional growth will likely come down to establishing the right balance between fundraising, efficiencies, and an effective return on spending.
Jace Tyrrell
Chief executive, Opportunity London
Sum up 2025 in one word: Recalibration
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic – some of the uncertainty has come out of the system, and global investors are once again engaging seriously with London, even if capital remains selective and disciplined.
What do you think will be the key watchwords/industry trends in 2026?
Delivery, viability, policy certainty and partnership.
Sum up your hopes, fears and expectations for 2026: I expect 2026 to be the year when the conversation moves decisively from ambition to execution. The Autumn Budget has not solved every challenge, but it has brought greater clarity and a more stable platform for decision making. That matters, because global capital responds to consistency and pace as much as it does to policy intent.
My hope is that London builds on this by maintaining a steady policy environment, speeding up planning decisions and backing projects that are genuinely viable. Residential-led regeneration, retrofit and mixed-use projects will be critical, alongside continued investment in enabling infrastructure. My main concern is drift: if decisions are pushed back and major projects stall, capital will gravitate towards cities that can demonstrate delivery. Overall, I remain optimistic. London has the depth, scale and fundamentals to attract the next wave of global capital, provided the focus remains firmly on delivery.
Sally Lewis
Founder, Stitch and principal, Broadway Malyan
Sum up 2025 in one word: Challenging
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?
Adoption of BIM and digital twins from early design stages to avoid inefficiencies. Firms that adapt and anticipate fast moving change will have a competitive advantage.
Sum up your hopes, fears and expectations for 2026: We hope 2026 brings greater certainty around regulation and funding so that the many stalled sites across the country can finally be unlocked. We are expecting steady, slow growth at best – nowhere near a boom – with a gradual increase in residential demand if borrowing costs ease and confidence returns.
We want to see a genuine embrace of flexibility in tenure and alternative living models, from build‑to‑rent to co‑living, later living and beyond. We anticipate a continued and unsurprising shift in focus towards strategic land and edge‑of‑town development for lower rise, lower risk, single‑family housing – but we believe the sustainability focus must remain on urban sites with excellent transport. We cannot afford to step back from the principles of the Urban Renaissance: we need to build on all fronts.
The Stitch/Broadway Malyan housing team will be focusing our efforts on delivering a joined‑up golden thread of housing design and delivery in 2026 and onwards, from the first concept sketch to building occupation. We bring vision at scale to win hearts and minds, and we pair it with the technical expertise needed to make places that work in reality – guiding projects through regulatory gateways, anticipating change at every step, and being trusted partners to our clients.
In this context, our stance for 2026 is clear. In: agile not fragile; buildings that work from day one, with performance, delivery and long‑term stewardship designed in from the concept stage. Out: indicative, fluffy proposals and “we’ll sort it out later” thinking.
Vanessa Hale
Head of research & strategy, BNP Paribas Real Estate
Sum up 2025 in one word: Unbelievable
Do you feel more or less optimistic than you felt 12 months ago?
I feel more optimistic. While 2025 investment volumes are tracking below earlier forecasts, market conditions are clearly moving in the right direction. Pricing is becoming more stable, confidence is gradually returning, and capital is more decisive. Looking ahead, the expected decline in 10-year gilt yields and base rate cuts through to 2027, as forecast by colleagues at BNP Paribas CIB, should provide a more supportive backdrop for real estate investment and transactional activity.
What do you think will be the key watchwords and industry trends in 2026?
By 2026, the market will have moved beyond a simple flight to quality and will increasingly be characterised by a ‘flight from volatility’, with capital gravitating towards real assets and alternatives that can deliver resilience, income security, and long-term relevance. Investors are becoming far more precise in how and where they deploy capital, shifting away from broad asset class strategies towards highly selective exposure to sectors underpinned by strong structural drivers.
The commercial real estate landscape will be shaped by ‘AI-driven infrastructure’, including data centres, digital assets and the power generation required to support them, alongside a growing focus on operational decarbonisation. Assets capable of delivering genuine energy performance improvements and capturing a green premium will continue to outperform, with refurbishment-led strategies playing a central role. At the same time, ‘next-generation niche sectors’ such as specialised logistics, self-storage, healthcare and other needs-based assets will see increased interest.
A defining theme will be the ongoing asset repricing across the market. High quality, income-secure assets with strong ESG credentials and clear long term utility will continue to consolidate their position, while secondary assets without a credible repositioning strategy will remain under pressure. Overall, real estate is increasingly being repositioned from a cyclical allocation to a stabilising, income-led and growth-oriented component of long-term investment portfolios.
Sum up your hopes, fears and expectations for 2026: My hope is that the recovery gains further momentum as there is now greater clarity around fundamentals, pricing and where value can be unlocked. While market volatility and uncertainty are unlikely to disappear, I expect the industry to continue adapting through active asset management, refurbishment and a renewed focus on rental performance.
The expectation is that capital will remain highly selective, with a clear preference for assets that can deliver resilient income, strong sustainability credentials, and long-term relevance. Real estate and infrastructure, particularly within basic-needs sectors such as data centres, affordable housing and healthcare, should continue to present a compelling relative-value proposition for investors seeking diversification and downside protection.
Overall, I remain cautiously optimistic about 2026, but I guess there’s always an element of the fear of the unknown attached to that. For well located, well managed assets aligned with long term structural trends, the environment should support both income stability and measured growth.
Jack Pinkney
Director of property management, Form Property
Sum up 2025 in one word: Experiential
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?
In the year ahead, occupiers are likely to continue to focus more on bespoke and highly flexible space planning, moving away from generic fit outs that were prevalent before the pandemic. From the landlord perspective, best in class amenities, wellbeing trends and integration of ESG will continue to dominate the office sector in 2026.
We expect to see greater take-up of prime, design-led spaces which align closely with occupier brand identity but can also be rapidly adapted to respond to changing requirements over time, including shifts in working patterns and the employee demands of the workplace. Taking cues from retail, we anticipate seeing the use of ‘destination workplace’ much more commonly.
Sum up your hopes, fears and expectations for 2026: 2026 will see the further evolution of the employee (and now, brand) experience while the war for talent will continue unabated. In addition, the growing trend towards the ‘amenitisation’ of the office is likely to see fewer employees working from home in 2026, with attendance creeping up over time.
A growing number of Gen Z employees will influence occupier decisions. This generation is increasingly in the driving seat for leading change and will not accept spaces which do not conform to their own longer term vision of the organisations they work for, not least in terms of more attractive features which support and enhance particular lifestyle choices.
For example, the provision of wellness and gym facilities, cafés, areas for socialising and even on-site access to various forms of healthcare provision. In addition, we will see a greater focus on supporting employees with accessibility, for example through the wider incorporation of standing desks into floorplans.
Félicie Krikler
Director, head of residential, Barr Gazetas
Sum up 2025 in one word: Renewal
Do you feel more or less optimistic than you felt 12 months ago?
I feel equally optimistic as last year. In 2025 I went through a big change professionally, which was exciting in itself. Looking ahead, 2026 looks to be just as positive, this time building on the foundations I’ve already Iaid.
What do you think will be the key watchwords/industry trends in 2026?
Residential sector trends must focus on both affordability and quality. Can we build better, timeless buildings and places, designed to be lived in and loved for generations – whilst spending money wisely and avoiding waste in all its forms and at all costs.
Sum up your hopes, fears and expectations for 2026: My hopes, fears, and expectations are deeply tied to the housing industry, the state of UK housing and most importantly their impact on people. I am particularly concerned for those with the least agency: individuals and families who have little choice over where or how they live and who are often the first to feel the consequences of policy failure, underinvestment and poor quality design.
At the same time, I am hopeful. I see a growing acknowledgement across the industry that good housing must be sustainable, varied, adaptable, varied and genuinely liveable. In 2026, I expect clearer standards, more delivery models and a non-equivocal understanding that design quality and social value are inseparable.
On a personal level, these issues resonate deeply as I grow the residential arm of Barr Gazetas. It is an exciting yet challenging responsibility to build on a practice renowned for complex retrofits and sustainable projects, and to channel that expertise into better homes and better projects for our clients.
Tom Pike
Director of planning, Lanpro
Sum up 2025 in one word: Cautiously-optimistic
Do you feel more or less optimistic than you felt 12 months ago?
Guardedly more optimistic on policy, but not yet on delivery. The scale of reform has been unprecedented – a revised NPPF and the Planning and Infrastructure Act. But our own survey of planners found that 62% think securing permission has become more challenging, not easier, and not one believed the 1.5 million homes target will be met. The ambition is clear, but the system is still catching up, with implementation and construction likely to continue to remain a challenge.
What do you think will be the key watchwords/industry trends in 2026?
Demand-side residential incentives: with the planning levers now largely in play, it remains to be seen whether further intervention to facilitate sales is still needed.
Democratic change: will planning committee reform come into force in 2026?
Nature as infrastructure: integrating ecology, landscape and BNG from the outset – and not as an afterthought.
BNG for NSIPs: BNG becoming mandatory for major infrastructure in May.
Strategic mitigation: moving from case-by-case negotiation on nutrients and water to predictable frameworks.
Energy transition: grid upgrades and the need for consistent, early community engagement.
Digital tools: AI and technology reducing friction, not replacing professional judgement.
Sum up your hopes, fears and expectations for 2026: I hope 2026 is the year strategy becomes delivery. The draft NPPF is the most significant rewrite in a decade, with clearer rules, a stronger presumption and practical support for SME builders. If local authorities maintain functioning policy baselines through reorganisation, we could see genuine progress.
My fear is fragmentation. Where councils are merging or negotiating devolution deals, emerging plans risk being paused or abandoned, with decision taking also likely to be affected. Without firm strategies, speculative applications rise, infrastructure planning fragments and public confidence erodes. Environmental constraints in areas like Norfolk remain acute – if they are not addressed strategically, local planning cannot deliver national targets.
My expectation is a mixed picture. The policy framework will improve, but delivery will lag. BNG becoming mandatory for NSIPs in May will test capacity, and the ‘great grid upgrade’ will test community relations. If 2025 was the year of reform by announcement, 2026 must be the year of reform by implementation.
Paul Alger
Real estate partner, HCR Law
Sum up 2025 in one word: Unpredictable
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic, but with some caution.
What do you think will be the key watchwords/industry trends in 2026?
Interest rates and stock market volatility.
Sum up your hopes, fears and expectations for 2026: As I look toward 2026, I do so with a blend of optimism and unease, shaped by the realities of the current real estate market and the broader global climate. I hope that interest rates will start to come down, creating a more favourable environment for transactions and allowing clients to pursue opportunities that only make economic sense in a lower rate setting. Lower rates would not only energise deal flow but also bring a sense of momentum back to projects that have stalled by economic pressure.
At the same time however, general global instability may continue to escalate, influencing everything from supply chains to investor sentiment. In a heavily connected global market, instability affects risk tolerance and adds uncertainty to even straightforward transactions. Against that backdrop, I expect people to remain cautious about deploying capital, scrutinising every deal more closely and favouring conservative strategies over bold moves. That context does however also create opportunities, and our role as legal counsel will matter more than ever – helping clients navigate uncertainty with clarity, pragmatism, and informed judgment.
Jason Tebb
President, OnTheMarket
Sum up 2025 in one word: Stable – despite the macro-economic and political instability, the overhyped budget and uncertainty for the UK economy, the UK property market proved, yet again, to be incredibly resilient.
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. The market proved resilient with national prices showing modest gains outside the South, supply improving and mortgage costs starting to ease, setting up a cleaner runway into early 2026.
What do you think will be the key watchwords/industry trends in 2026?
Artificial Intelligence will continue to dominate conversations about its potential to transform the sector, though its real impact will remain limited. I also think industry consolidation will accelerate across agencies, proptech and data providers, favouring scale and integrated, data-rich solutions.
I’m expecting it to be a buyers’ market in 2026. With elevated stock levels, motivated sellers and easing affordability criteria gives buyers greater negotiating power and sharper pricing. Transaction times will remain a contentious issue, particularly as the industry continues to complain about delays despite existing technology already available that can speed up the processes. Time will tell if anything will change.
Sum up your hopes, fears and expectations for 2026: I expect a steady recovery in the market in 2026. A combination of greater affordability and slightly lower bank rates should boost confidence and transaction levels without triggering excessive price inflation. With more stock, sharper pricing, and stronger data-led insights to cut fall-throughs and shorten time to sell, I’m hopeful the buyer journey becomes clearer and faster.
My concern is complacency and policy uncertainty. Southern markets remain highly price-sensitive, and any shocks from tax changes, recession, or inflation could derail progress. That said, with stabilised prices, resilient northern markets, and competitive lending, the UK property sector has the potential to shift from stabilisation to selective growth throughout 2026.
Just how good is the biggest transfer deal of the summer?