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 two!
Keith Breslauer
Managing partner and founder, Patron Capital
Sum up 2025 in one word: Challenge
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?
Increasing liquidity, more aggressive lending, greed, investor appetites.
Sum up your hopes, fears, and expectations for 2026: Looking ahead to 2026, I expect the real estate market to continue stabilising, with investors becoming more active and market liquidity further improving. I also hope for continued political stability across Europe, as well as the successful implementation of Germany’s fiscal plans, which could provide meaningful stimulus to boost growth across the German and wider European economy. Most importantly, I am hopeful of progress toward peace in Ukraine and the potential economic uplift and improvements in quality of life that such stability could bring to Europe.
Natasha Guerra
CEO, Runway East
Sum up 2025 in one word: Inertia
Do you feel more or less optimistic than you felt 12 months ago?
About the same. A year ago, there were murmurings following the budget and its impact, and those carried into 2025 with whispers of change about the last budget. All the while, businesses were sitting on their hands, cautious and nervous. This year’s budget, I think, has ironed out some concerns and provided a bit more clarity. So, while things haven’t fundamentally changed, businesses will have to take action next year – which can only be a good thing. Across the board, we need to rally together to get things done and work with what we’ve got. This will really rely on partnerships, something we know and do very well. Optimistic at heart, I believe the headwinds are starting to change.
What do you think will be the key watchwords/industry trends in 2026?
Consolidation and partnerships. The last five years have been punishing for business, and we’re seeing companies consolidate or bust. I believe this will continue into 2026. I also think we’ll see more proactive partnerships, because businesses can no longer operate as lone rangers. By working together, we bring different skills and opportunities, and achieve better execution as a result.
Sum up your hopes, fears and expectations for 2026: With a strong pipeline into 2026 and two West End launches ahead, I’m keen to build on what’s worked well for us so far – forming another partnership with a landlord or asset manager that spans multiple sites.
James Townsend
CEO, Kontor
Sum up 2025 in one word: Sluggish
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?
Managed space/hospitality focus in the office market/health and wellness amenity.
Sum up your hopes, fears and expectations for 2026: Capital markets unlocking, with a greater focus on income producing assets and maturing of flex/managed solutions being consumed. The lack of knowledge in the sector provides opportunities for specialist advice and I predict several M&A events to occur through the year. Biggest fear is another 12 months of a sluggish market with external factors impacting confidence. 2026 looks very promising based on current pipeline so quietly confident of a strong central London office market with managed space taking a starring role.
Paul Muldowney
Managing director, Barratt West London
Sum up 2025 in one word: Anticipation
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. The government and GLA’s recent measures to support homebuilding, coupled with efforts to start clearing Gateway 2 backlogs, could be the start of improved conditions for homebuilders in the capital.”
What do you think will be the key watchwords/industry trends in 2026?
From my perspective, key watch words and trends for 2026 will be closely linked to housing demand and supply. I expect to see demand-side stimulus and affordability to be on everyone’s lips, with increased emphasis on helping buyers. While partnerships and Gateway 3 are set to be trending topics on the issue of unlocking housing supply.
Sum up your hopes, fears and expectations for 2026: If the government builds on its initial steps to improve supply by lowering requirements for affordable housing, it will provide homebuilders with the confidence to accelerate delivery. But the next phase of action is critical.
Next year, I also hope to see a stronger, more active approach to supporting purchasers, particularly first time buyers. The affordability gap remains a major barrier, especially in London. Helping overcome this is central to easing the wider housing shortage as it will restore momentum into the market which enables developers to unlock more sites and deliver at scale. With targeted measures in place on both the supply and demand sides, the industry will be far better placed to create the homes and places London and the UK urgently needs.
Camilla Topham
Co-founder, Distrkt
Sum up 2025 in one word: Transitional
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?
For the hospitality and leisure sector the key watchwords will be resilience as the sector continues to face significant headwinds with rising business rates and labour costs on the horizon. In terms of trends, with the success of contrast therapy/saunas we will continue to see the wellness sector evolving and growing substantially as it has in New York and pubs in prime locations will continue to be highly sought after.
Sum up your hopes, fears and expectations for 2026: Whilst operators are struggling with increasing costs and further closures are on the horizon (thank you Rachel Reeves!), the experience economy in tandem is becoming increasingly important to consumers as we seek to make memories and are valuing this over physical purchases. The role of hospitality and leisure is therefore ever increasingly fundamental in our developments and estates and I hope that landlords will work closely with best in class operators and be creative with dealmaking to ensure their success.
I also hope more spaces are unlocked in cultural institutions like Somerset House where we placed four new restaurants this year. I fear that with the pressure that the sector is under that it will contract, particularly in secondary locations as there will be a flight to prime as we have seen with the Shaftesbury Capital estate which is thriving.
My expectation is that it will be another challenging year for the sector with further voids and closures expected, however, this will create opportunities and there are plenty of creative independents on the expansion trail seeking fitted spaces. This will enable landlords to refresh their tenant mix, however, they may need to adjust their expectations. We will also see operators rely more on tech as staff costs rise and I’m excited to see how some of the best operators do this without compromising on hospitality.
Martin Roberts
Principal, Addington
Sum up 2025 in one word: RachelNoIdea
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic – not much more damage can be done to the economy by the current crew and much of the future damage will be delayed for 12 months following government reorganisation post the May elections
What do you think will be the key watchwords/industry trends in 2026?
More capital stack stress, greater regulation and more inflation in residential rents as stock of PRS continues to shrink. Greater homelessness.
Sum up your hopes, fears and expectations for 2026: I am worried about the global outlook for more conflict and the greater polarisation between religious groups. I fear there will be no growth in many parts of the UK economy leading to rising unemployment. Despite all of this, there will be greater certainty in property markets and more trading. We will see activity across the risk curve with more core and core plus deals. Value add will be the biggest source of new money into UK property in 2026. There will be more debt available at lower cost – there will be two reductions in interest rates next year, but it will be greater competition which will be the main driver of the overall cost of borrowing.
My hopes are for a long term solution to global conflicts in Ukraine and the Middle East, that we return to being more tolerant of religious groups, doing the right thing and living within our means. We need a more stable environment politically in the UK where government doesn’t get any bigger and starts listening to the working people. In the property world I hope for an increase in trading activity in the UK markets albeit in a low growth environment.
Peter Allinson
Chief executive, Davitt Jones Bould
Sum up 2025 in one word: Frustrating
Do you feel more or less optimistic than you did 12 months ago?
I’m always optimistic. Yes, it’s been a frustrating year, and there will no doubt be challenges in the coming 12 months. But we’ll meet them head on. As well as being generally positive, and in spite of what seem to be plenty of reasons not to be, market conditions have the potential to improve, thanks to the downward path of interest rates.
I feel there’s a growing sense of collaboration across the legal industry, with firms being open to discussing non-competitive issues in a full and frank way. We’ve certainly seen that aspect of the industry coming to the fore. And the recent Budget wasn’t as awful as some feared it might be even though it had the potential to be anti-growth.
What do you think will be the key watchwords/industry trends in 2026?
Interest rates are going to be key. If they continue to fall – and we believe they will – this can only boost consumer sentiment and follow through with more activity for our industry. Elsewhere, London remains a magnet for overseas investors and many people still want to invest there, despite the challenges which come with that.
That said, pressures on employers to reduce headcount will accelerate, brought about by the National Insurance rise, National Minimum Wage rise and the Worker’s Rights Bill. Despite the rhetoric regarding promoting growth, these measures alone will put increased pressure on business, and sadly I fear unemployment will continue to rise.
Sum up your hopes, fears and expectations for 2026: The Building Safety Act is holding up delivery of residential developments. Too many projects are being delayed, and this needs to be sorted out in the coming months. Construction costs are another elephant in the room, although if interest rates come down and inflation starts to fall as well we may some respite there. On the positive side, I believe we’ll see a rise in deals across the sector. Market activity in 2025 was better than it otherwise might have been, thanks to greater realism around pricing. This is likely to continue.
I also think we’ll see the government respond to some of the criticism of its policies regarding the real estate sector by scaling back its plans or perhaps reversing them altogether. I share the concerns of many who fear that employment costs, both in terms of the national minimum wage and National Insurance, are going to price people out of work. At Davitt Jones Bould we’ll continue to do what we do best. We have been involved in a lot of work in 2025, employing some pretty innovative solutions to get deals over the line. I’ve no doubt we’ll see more of the same in 2026.
Graham Sturge
CEO and founder, RED Construction Group
Sum up 2025 in one word: Sustainable growth
Do you feel more or less optimistic than you felt 12 months ago?
It is very important to be a realist when working in the construction industry and I am well aware of the challenges that we face within the sector. UK construction market volumes were down 6% over 2025, there’s increased tax pressure and the longest period of decline since the financial crash 15 years ago. However, as a stable and mature business now a decade old, we have just celebrated record turnover and our most successful year to date in spite of these obstacles. As a result, this has laid a strong foundation as we head into 2026, with a strong pipeline set to further instigate controlled growth for the business.
What do you think will be the key watchwords/industry trends in 2026?
There will be challenges ahead and we anticipate that projects will progress at a slower rate. However, in terms of what we will see in response, we anticipate that there will be more diversification across the industry. Contractors will need to start expanding into new territory in order to plug the gaps left behind. We have already seen this start to come into practice throughout 2025 and has meant that we have had to evolve our methodologies and strategies in response. This shift shows no sign of stopping for others in the industry, who will also need to remain agile and adaptable in order to be successful.
Sum up your hopes, fears and expectations for 2026: At the outset of 2025, we had predicted that a ‘new norm’ would emerge by Q4, however, this did not materialise. Yet we, as a business, continue to find a way through, seeking and finding a path to sustainable growth, and remained optimistic that better markets were on the horizon. As the year comes to a close, we have learnt that the key has once again been to confidently manage the risks when they come.
Going into 2026, we once again see the shoots of recovery within the sector, but it will be a steady process that is due to build over the year. As a result, we can be innovative in our approach and strategically harness the opportunity to grow our infrastructure during this period, so we can be in the best position going into a stronger economic climate. Ultimately, our aim is to remain stable whilst supporting our essential supply chain partners by both managing risk and adding value to projects for our clients.
Sarah McLaren
Director of hospitality and culture, The Crown Estate
Sum up 2025 in one word: Resilient
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?
In the F&B sector, experiential concepts will continue to drive innovation in 2026, while quality will remain a defining watchword for operators. Localisation and sustainability will also continue to take centre stage, playing a growing role in occupier strategy as brands seek locations that support differentiation, flexibility and long-term value.
Sum up your hopes, fears and expectations for 2026: Hopes – our hopes for 2026 are grounded in London’s enduring position as a global flagship destination and its ability to continue attracting investment and innovation from around the world. We expect to see continued momentum in sectors including hospitality, with new international entrants choosing London as a strategic European base, while established groups expand their presence across prime locations. We also hope to see more local brands growing with confidence in 2026, incubating in the right locations that allow them to develop distinctive, resilient offerings and build loyal customer bases.
Fears – looking ahead to 2026, new openings will continue to be influenced by international economic factors and geopolitical uncertainty. Ongoing cost pressures around produce and operations in F&B supply chains may also encourage a more cautious approach in parts of the restaurant and hospitality market.
Expectations – our expectation is for a resilient London market in 2026, particularly in core and prime West End locations, where strong fundamentals continue to support demand and underpin leasing activity. The most successful operators will be those that stay closely attuned to evolving consumer expectations and market trends, harnessing the power of digital and social engagement to build loyalty, deepen customer relationships and drive sustained footfall over the long term.
John Webber
Head of business rates, Colliers
Sum up 2025 in one word: Disappointing
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?
Let’s start with the 2023 rating list/Covid allowances/that rates bill can’t be right – it must be a typo!
Sum up your hopes, fears and expectations for 2026: My hope is that the government realises that it got the numbers wrong on the multipliers from April 2026 and decides to reduce the smaller retail hospitality, leisure (RHL) multiplier by the full 20p, whilst removing RHL properties above £500,000 from the additional surcharge.
I hope the pressure applied on the government by the sector will bear fruit, allowing it to take a sigh of relief and plan for the future – investing in jobs and bricks and mortar – and actually help grow the economy. The fear is that the penny fails to drop and the Labour government continues to damage confidence in the economy by taxing UK plc into oblivion.
My expectation is that only electoral carnage in the May local elections will alter the leadership of the Labour party and set them on a different course. The continued pressure from opposition MPs, trade bodies and large ratepayers will then bring them to their senses allowing the reset to happen. The reversal of the VOA into HMRC will result in a more pragmatic conclusion to what will be a large backlog of appeals in the CCA system.
Maja Nesdale
Principal, Arcadis
Sum up 2025 in one word: Zombie (not dead, but barely alive).
Do you feel more or less optimistic than you felt 12 months ago?
The same but different. Change is happening, but at a snail’s pace.
What do you think will be the key watchwords/industry trends in 2026?
Innovation in design and delivery through applicable AI tools and processes.
Sum up your hopes, fears and expectations for 2026: While I don’t think anyone can expect the geopolitical or economic landscape to change positively, I think 2025 has taught us how to function through the chaos. This resilience will help our industry to weather future storms, but we have to work together and more innovatively to get us there. Yes it is broken and we must fix it. I hope we embrace new technologies and ways of working while still putting the human first. Great architecture and design has always been a response to the challenging needs of the times and as architects we need to acknowledge that our role and profession has changed.
2026 will not be the year the market returns. It will be the year it clarifies. Work will exist, but unevenly. The public sector will dominate pipelines, frameworks will set the rules, and architects will increasingly operate inside pre-defined systems rather than shaping them.
Private sector housing will remain the unresolved problem. Viability will continue to trump ambition and many schemes will stall between planning and procurement. We will be asked to redesign the same projects repeatedly, but that won’t get us to the right answer quicker. We must embrace technology and innovate our processes in order to compete.
Design quality will survive, but only where it proves its usefulness. 2026 won’t bring dramatic positive change, but my hope is that it is always darkest before the dawn and maybe that’s where we are now.
James Brown
Investment manager, ARGO Real Estate
Sum up 2025 in one word: Opportunistic
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?
Investors will continue to allocate capital to ‘beds and sheds’ as these sectors continue to benefit from structural tailwinds supporting income and capital growth.
Sum up your hopes, fears and expectations for 2026: Economic indicators are trending better with inflation and interest rates falling, which should ultimately prove more positive for real estate as an asset class. I hope that we have more political stability, both internationally and in the UK, which should help release pent up investor capital that has been waiting on the sidelines. More of the same stasis seen in 2025 would be frustrating but I expect to see a cautious start to 2026 from the market.
I am confident that we will continue to see compelling opportunities in the multi-let industrial space, particularly assets that require full brown-to-green refurbishment, providing the opportunity to significantly add value. These assets offer attractive risk-adjusted returns where those with the right asset management skillset can unlock the reversionary income and significant capital upside.
Dominic Smith
Head of UK research, CBRE Investment Management
Sum up 2025 in one word: Sixseven (because every MSCI Monthly Index return for the first nine months of the year was 0.6 or 0.7).
Do you feel more or less optimistic than you felt 12 months ago?
Twelve months ago I’d hoped (and excepted) 10-year gilt yields to be close to 4%, annual investment volume to be over £55bn and MSCI total returns to be pushing 10%. The numbers have disappointed me on all three counts. Do I expect those marks to be hit in 2026? Probably not, at least not all three, so on that basis I may be slightly more pessimistic.
That said, people tend to obsess about the gilt yield too much. Thinking the spread over gilts tells us something about the property market’s performance, when evidence tells us it actually doesn’t – there is literally no correlation between spread and subsequent performance. Liquidity in the market gained momentum in 2025, a trend that should continue into 2026. Asset values are on a steady upward trend in most key locations and sectors, driven by solid occupier demand and restrained supply – this should continue. So actually, my glass is half full!
What do you think will be the key watchwords/industry trends in 2026?
Investors will be focused on bond markets, geopolitical risk and potential shocks. In the UK, political risk could increase and there’ll be permanent focus on signs of economic growth. Rental growth has been the bedrock of real estate’s performance and is the main (in some cases only) component of many forecasts of capital growth. There’s been consistent nervousness about its ability to keep delivering and it’s consistently exceeded expectations. This is where investors eyes will likely be drawn when assessing prospects.
And with sector forecasts converging, portfolio performance will increasingly be bottom-up driven rather than top-down – less about big allocation bets driving out performance and more about driving upside from individual assets. That upside will primarily come from the rental side.
Sum up your hopes, fears and expectations for 2026: I hope we can look back on 2026 as being when government policy decisively oriented itself to firmly driving economic growth, but I fear it won’t be the case. I expect investment will be strong across the board in residential. Within the legacy sectors I expect more nuanced if not polarised demand at the asset level differentiated by buyers’ views on income growth prospects. I also expect my kids to still be driving me mad with the sixseven chat.
Simon Stewart
Associate director, Rund
Sum up 2025 in one word: Reset – after several years of disruption, 2025 has been about recalibrating – from land values and build costs to policy expectations and delivery models.
Do you feel more or less optimistic than you felt 12 months ago?
Cautiously more optimistic – there is greater clarity than there was 12 months ago. While viability remains tight, particularly for SME developers and mid-rise schemes, the industry is adjusting to the new normal. Developers, funders and local authorities are beginning to align more realistically on what is deliverable, rather than what is theoretically desirable.
What do you think will be the key watchwords/industry trends in 2026?
Viability realism – honest conversations on policy, land value and delivery risk.
Regional city growth – places like Bristol, with new urban quarters such as Brabazon taking centre stage.
Planning pragmatism – outcomes focused and decision making, over process.
Delivery partnerships – stronger collaboration between public and private sectors.
Efficiency – more innovative design, procurement and construction to protect margins.
Regulatory navigation – particularly around building safety, biodiversity and net zero.
Sum up your hopes, fears and expectations for 2026: I hope 2026 is the year when delivery regains momentum, particularly in regional cities where demand fundamentals remain strong. Developments such as the new Brabazon neighbourhood demonstrate what is possible when long-term vision, infrastructure investment and collaboration come together, and I expect these emerging urban centres to play a far greater role in meeting housing need.
My primary concern is that, while regulation is well-intentioned, it continues to outpace viability. The cumulative impact of building safety reform, environmental requirements and planning obligations risks stalling schemes that are otherwise sustainable and needed. With greater flexibility and pragmatism, more homes will get built.
That said, I expect the industry to adapt. We are seeing more realistic appraisals, earlier engagement with local authorities and a growing acceptance that quality, safety, and deliverability must be balanced. If policy and practice can align, 2026 could mark a shift from stagnation to steady, sustainable growth in residential delivery.
Justin Tuckwell
Managing partner, Rapleys
Sum up 2025 in one word: Hard-work!
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?
Strategic growth, planning policy, alternatives, talent, tenacity.
Sum up your hopes, fears and expectations for 2026: 2026 will be another year of hard work, tenacity and commitment which, we hope will also be rewarding for our business. The industry itself is set to see more government policy changes which we hope will start to come together to move crucial elements, like the delivery of housing and infrastructure, forwards.
The business rates reforms will have an impact – both positive and negative – across the various sectors and our industry is well-primed with professionals to help advise at both ends of the spectrum. Another key topic we will be watching out for is the skills gap and how we can bring talent through, particularly in building surveying and planning where there are notable gaps but lots that needs to be done to support the built environment and we are keen to collaborate with others on this topic.
Other trends we will see more of will be a focus on healthy homes – across both the private and public sector – a continued interest in alternative assets as investors seek to diversify, and ongoing asset management and operational real estate strategies to maximise efficiencies amid rising costs and the need for returns.
For Rapleys, we turn 75 in 2026 and this is a major milestone for our business which has undergone huge growth, repositioning and seen success in recent years. We will be maintaining our commitment to sustainable growth and to our people throughout the next 12 months and beyond.
Robert Schogger
Co-founder & CEO, MetSpace
Sum up 2025 in one word: Evolving
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. Compared to this time last year, there’s a greater sense of realism in the market. Expectations are more aligned with what occupiers actually want and what buildings can genuinely deliver. Towards the end of 2025, confidence started to return and decisions are being made again and that momentum makes a difference.
What do you think will be the key watchwords/industry trends in 2026?
Occupier-led demand will continue to shape the market, particularly for thoughtfully-designed, properly managed space that’s delivered seamlessly. Businesses are no longer prepared to compromise on quality or experience, and getting the fundamentals right will matter more than ever. We’ll also see continued consolidation as recognition of experienced operators as an investable asset class grows. Those who prioritise quality and genuine landlord-operator collaboration will see the biggest success.
Sum up your hopes, fears and expectations for 2026: There’s been a noticeable shift in sentiment toward the end of 2025, particularly post-budget. Decision making has picked up, confidence is improving, and that’s crucial. Businesses thrive on confidence and the goodwill in strong, long term relationships they have.
My hope is that this momentum continues into 2026 and allows the sector to continue to mature in a more considered way, with a clearer understanding of what managed space should be and who it’s really for (I might be biased, but thoughtfully-designed managed offices are the future). We’re seeing better conversations, more informed occupiers and landlords increasingly open to working with experienced operations rather than trying to do everything themselves, and, in turn, missing out on the benefits that come from industry experts.
The concern is that confidence, as ever, is still fragile. A misstep next year – particularly from the Spring Budget – could knock sentiments back again. It feels like we’re making progress, but it may not be a straightforward line – there’s always the risk of two steps forward, one step back. That said, the direction of travel is right, and the fundamentals of the sector remain strong.
Ed Clough
Head of real assets, Octopus Capital
Sum up 2025 in one word: Reset. It was a year of getting back to fundamentals – reassessing viability, rebuilding confidence and working out what’s genuinely deliverable.
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. A year ago, the market was still waiting for the next shock. Now, conditions are steadier, conversations are more constructive and developers are returning with clearer plans. It’s not a surge in confidence, but the direction of travel is better. The sector feels more aligned on what needs to be delivered and what good capital should support.
What do you think will be the key watchwords/industry trends in 2026?
Delivery: viability, planning and execution will matter more than headline demand.
Purpose with proof: sustainability and social value shifting from claims to measurable outcomes.
Flexibility: capital structures that adapt to real-world conditions, not rigid templates.
Operational strength: schemes with strong operators and higher service standards will attract capital faster.
Sum up your hopes, fears and expectations for 2026: I’d like 2026 to be the year we make meaningful progress on delivery. The need across the living sectors, from affordable homes to later living, is well understood. What matters now is getting viable schemes moving, with capital and operators working more closely together to raise the standard of what gets built and how it’s run. My main concern is the friction that continues to slow good projects: planning delays, rising regulatory requirements and the cost of meeting modern sustainability expectations. These issues remain the biggest constraint on supply.
Even so, I expect 2026 to be more constructive than the past few years. Financing markets are normalising and there’s a stronger appetite for partnership-based approaches that reflect the realities on the ground. Those who stay flexible, stay close to delivery and focus on long term value rather than short term noise will be well placed. The opportunity is there – the challenge is execution.
Costas Demetriou
CEO, Wifinity
Sum up 2025 in one word: Optimisation
Do you feel more or less optimistic than you felt 12 months ago?
Cautiously optimistic. A year ago, too many schemes were stalled and it was uncomfortable. We are now seeing projects begin to unblock, with decisions being made and momentum slowly returning. It is still difficult, but the direction of travel is more positive.
What do you think will be the key watchwords/industry trends in 2026?
The Building Safety Act for sure. This comes up in every conversation. Alongside that, IoT, additional revenue sources and sustainability are the main requirements of the tenders we see.
Sum up your hopes, fears, and expectations for 2026: 2026 is still going to be a challenging economic climate. Whether new build or retrofit, residential or commercial, the industry needs every property operating at its peak. At our recent industry roundtable with BE News, senior leaders talked about serious investment in digital platforms and ‘day one’ smart building applications. Things like access control and surveillance to building management tools, compliance sensors and resident-facing services. None of this works without a stable, well-designed network.
We’re banging the drum to raise awareness that connectivity still appears too late in the process. The issue for the industry is that leads to gaps at handover, operational friction and pressure on last-minute fixes. Digital infrastructure will increasingly determine how resilient, efficient and sustainable BTR portfolios become.
My hope for 2026 is that the industry will settle into a more consistent planning cycle and that the Building Safety Act will enable, rather than hinder development. The government set an ambitious building target and I know that developers are hungry to meet it and up safety and sustainability standards.
Richard Dudzicki
Founder, RDA
Sum up 2025 in one word: Rollercoaster!
Do you feel more or less optimistic than you felt 12 months ago?
I’m an optimist. If I’ve learnt anything in business over the last 30 years, it’s that despite the downturns, things do pick themselves up again. 2025 has been gruelling, but surviving is thriving.
What do you think will be the key watchwords/industry trends in 2026?
The high street – I think this slipped off the radar last year, so in 2026 we’ll be talking about it again, but not in terms of collapse this time, rather its renaissance. The flip side of the geopolitical madness we find ourselves in is a renewed focus on local enterprise and business. I’m a high street business and I see the shops around me thriving because we’re all searching for community because that is our safety. Moving into 2026, I think we’ll see more independents and smaller chains on high streets, with out-of-town sites increasingly converted into homes and offices.
Housing and development – since Angela Rayner left her post, there has been a sense of stalled development. With just three years to go, the Labour party needs to pull out all the stops on housebuilding. I think we’ll finally see some large sites pushed over the line next year – ideally with smaller architectural practices delivering phases, so we can get things done.
Sum up your hopes, fears and expectations for 2026: At RDA Architects, we’re known for our design quality and our commitment to Passivhaus and retrofit. We already do this work for a number of independent clients, but next year I hope to do more with developers and local authorities. Legal requirements are now in place, but more importantly, we’ve identified a pressing need to transform homes into genuinely healthy places to live.
Christopher Holloway
Chief revenue officer, ASK4
Sum up 2025 in one word: Exciting
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. Over the past 12 months we’ve focused on positioning ASK4 for sustainable growth across our key UK and European markets. We’re starting to see positive momentum returning, from early green shoots in construction licensing in cities such as Milan, to increased clarity around the UK’s Building Safety Act, which is helping to unblock delayed projects and restore confidence among developers and operators.
We design, engineer and manage intelligent networks and smart systems that integrate seamlessly into a building’s architecture, so as projects move forward again, that long term, infrastructure-led approach puts us in a strong position to support our clients’ growth ambitions.
What do you think will be the key watchwords/industry trends in 2026?
Future-proofing, performance and intelligence will be the defining watchwords as we move into 2026. Owners and operators will increasingly expect next-generation performance and reliability as standard, not as a premium. At ASK4, we’re setting a new benchmark with the rollout of wifi 7, enabling clients to future-proof their investments and ensure every building is ready to support smart building technologies alongside high-performing resident networks.
AI will also accelerate rapidly in importance, underpinning smarter, more responsive building operations. Through our proprietary technology and expert engineering, including specialist networks and wifi designed for critical building systems, we’re enabling environments that run smoothly, efficiently and insightfully. Together, these trends point to a clear shift: digital infrastructure that behaves like part of the building itself, delivering resilience, intelligence and long term value.
Sum up your hopes, fears and expectations for 2026: My hope for 2026 is a more stable global backdrop, starting with an end to the conflicts we are currently seeing and a return to greater international cooperation. Stability matters not just geopolitically, but economically and socially, particularly for sectors reliant on long-term investment and confidence. My main concern is continued political and economic volatility, alongside the growing complexity of regulation and security. An increased focus on cyber security is both necessary and welcome, but it must be balanced carefully to avoid compromising privacy and freedom of speech.
Despite these challenges, my expectation for 2026 is one of continued progress and resilience. ASK4 will continue to strengthen its position as a leading managed service provider in the living sector across the UK and Europe. By delivering the digital infrastructure that provides the backbone of connected living we will keep enhancing resident experience, reducing operational complexity, and elevating building performance. Even in uncertain times, well-designed, intelligent infrastructure remains essential and that is where we will continue to focus.
Paul O’Brien
Director of leasing & commercialisation performance, Hammerson
Sum up 2025 in one word: Progress
Do you feel more or less optimistic than you felt 12 months ago?
We’ve been feeling very confident in our strategy and our assets for some time now, and if anything, the last 12 months has only strengthened that view. The right assets in the best locations are clearly a focus for leading local, national and international brands. As we have evolved Hammeron’s platform, we are well placed to continue supporting our brands and occupiers, achieving collective growth and success. But there is always plenty to do!
What do you think will be the key watchwords/industry trends in 2026?
I expect to see a strong focus on two key trends in 2026: personalisation and experience. The unified commerce model used by leading by brands means consumer journeys will be even more tailored to their needs and, at its core, brands will continue to focus on ensuring the best possible customer experience.
Sum up your hopes, fears and expectations for 2026: I hope that we’ll continue to see confidence to invest. This includes new experiences and concepts coming into our markets and engaging in innovative ways. I probably fear the most regulatory intervention, especially with unintended consequences. I hope common sense prevails and that we can continue to deliver growth which helps our business, our brands, our partners and the very cities and communities we serve.
Olga Turner-Baker
Managing director & co-founder, Ekkist
Sum up 2025 in one word: Progress
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. Over the past year we’ve seen a clear shift: health in all property sectors is no longer viewed as a “nice-to-have,” but as a strategic necessity. While commercial property has been pushing this sentiment forwards over the last five years or so, 2025 felt like a turning point for housing. Awaab’s Law coming into force was a big driver and alongside it a renewed focus on all aspects of health in housing becoming a key priority for all types of developers and housing providers. The enthusiastic interest in and uptake of the Healthy Homes Checklist by developers, housing associations and local authorities has shown us that the industry is genuinely ready to embed health outcomes into residential design. We’ve been in parliament twice to discuss this, and it feels like the government is also paying attention. That wave of engagement gives me more confidence today than I had a year ago.
What do you think will be the key watchwords/industry trends in 2026?
Transparency – the consumer demand for honesty and clearer reporting on indoor environmental quality and building-level health metrics is growing. Developers now need to design with intention and the awareness that the end occupant wants proof that their home or office will have a positive impact on their health outcomes.
Health accountability – I think we will see an increasing movement within the industry of obtaining measurable, evidence-based performance data on healthy developments.
Data-driven design – this starts with mass adoption of evidence-based frameworks/tools/ratings. Once developers have gathered their own post-occupancy data, they can then begin using that to further refine design decisions and operational strategies on existing and future schemes.
Housing resilience – design responses to overheating, air quality, and climate-driven vulnerabilities.
Sum up your hopes, fears and expectations for 2026: 2026 will be a pivotal year for housing. My hope is that the industry embraces a genuine culture shift: one where every new home is judged not only by cost and carbon, but by its ability to support physical and mental health. With the Healthy Homes Checklist becoming the UK’s National Registry for Health in Housing, we expect to see far greater clarity on what “good” really looks like – and far more accountability for delivering it.
My concern (likely shared with many) is that economic pressures could tempt some organisations to deprioritise health at the time when it matters most. But overall, I expect 2026 to be the year when health becomes a mainstream performance metric for homes – not an aspiration. The momentum built in 2025 makes me confident that we’re moving firmly in that direction.
Ed Hughes-Power
Partner in the commercial real estate department, Mishcon de Reya
Sum up 2025 in one word: Polarised
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic – the past year has forced a reset with sticky inflation, elevated interest rates and global macroeconomic volatility, but we’re emerging with more appetite for risk and investors ready to re-engage in the sectors that truly work.
What do you think will be the key watchwords/industry trends in 2026?
Regulatory drag, Gateway 2 shaping viability; single-family rental as an institutional alternative sector to avoid Gateway risk; operational risk vs delivery certainty; flight to quality.
Sum up your hopes, fears and expectations for 2026: 2026 will be a year where clarity returns, but only for the sectors with true structural resilience. PBSA will continue to outperform, driven by sustained student demand and investors who value certainty and stable occupancy. BTR will remain more challenging, with viability pressures and prolonged Gateway 2 determinations slowing momentum and narrowing the pool of deliverable schemes.
My hope is for a more consistent regulatory environment that allows good projects to progress without unpredictable delays, but my concern is that inconsistency with the Gateways could continue to stall otherwise high-quality development. Overall, however, expectations for 2026 are cautiously positive building on a foundation of pragmatism, and I trust the strongest themes – PBSA, viable BTR schemes, single-family rental, high quality ESG-led offices, logistics and data centres – will guide the market back toward steady growth.
Laura Cassullo
Board director & head of London studio, Stride Treglown
Sum up 2025 in one word: Impact
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. 2025 has been a year of recalibration, but it has also created real strategic momentum. There is greater clarity across the industry about risk, value and delivery, and a stronger appreciation of the role design leadership plays in unlocking complex, long-term opportunities.
What do you think will be the key watchwords/industry trends in 2026?
Regeneration, partnership, retrofit, experience and delivery confidence. We will continue to see growth in mixed-use urban projects and retrofit-led development, with increasing emphasis on teams that can operate confidently across public and private sector interfaces.
Sum up your hopes and expectations for 2026: 2026 feels like a year where clarity of intent translates into delivery at scale. The most meaningful opportunities sit in strategic growth areas that bring together public sector ambition and private sector investment to shape long term outcomes for cities. At Stride Treglown, our focus is on investing in these strategic growth areas, using collaboration between public and private clients as a catalyst for sustainable growth.
Our expansion in London is a key part of this approach, positioning us closer to complex urban projects, national clients and long term programmes, while strengthening our ability to work across sectors. My expectation for 2026 is a market that increasingly rewards practices who can lead confidently across disciplines, stakeholders and sectors, and who are clear about the value they bring beyond individual projects.
Alex McCulloch
Director, CACI
Sum up 2025 in one word: Traction – amid notable headwinds we have still seen forward movement through the year with growth in liquidity, shopping centre investment, some clear retail winners and an engaged consumer.
Do you feel more or less optimistic than you felt 12 months ago?
On balance, more optimistic (just). It’s taking longer to slip the malaise of the last five years than would be hoped, however, more market liquidity, falling inflation, AI gains and a gritty resilience make me think we’re still going in the right direction.
What do you think will be the key watchwords/industry trends in 2026?
Look out for “rate-watch” symptoms as interest and inflation continue to fall and liquidity rises, and prime shopping centres lead performance as new owners drive leasing activity with rental tension. For consumers, identity beats ubiquity, a clear brand proposition winning with consumers and a seeking out of in-person experiences.
In fashion, we anticipate a heritage revival. Country-set classics in the UK – think tartan, tweed, and quality – and 30’s-50’s Americana as the US dominates the news cycle. Additionally, we are likely to see the growth of smarter workwear including formal shoes, a Cos revival, UNIQLO knits, shirts and post-ironic ties. In catering it will be a big year for big sandwiches with maximalist fillings and flavours being the grab and go trend for 2026, whilst the Gen Z protein obsession will continue unabated as the new salad operators expand out of London.
Leaning into consumers’ conflict between wants and needs, expect more low x high collaborations between everyday high street brands and luxury, to bridge the gap for customers who want more for less Could it be that we also see the start of an AI-content backlash, as people tire and prioritise low-fi realism and quality, but also, simultaneously start leaning into agents that remove consumer friction?
Sum up your hopes, fears and expectations for 2026: I hope we see a calmer, more stable landscape, with falling inflation and rates leading to growing consumer confidence and spend bouncing back after a Christmas wobble. This will drive investors to seek sustainable income, investing to unlock it with prime centres, outlets, and retail parks all performing well.
I would expect that with another summer of sport (and hopefully success!) on the horizon in 2026, with the Women’s T20 World Cup and Commonwealth Games taking place in the UK, we can expect a further boost in consumer confidence.
As businesses start to implement AI driven strategies, we are also likely to see productivity grow, especially as consumers and workers gain confidence in the technology, leading to a strong economic uptick.
My fears are that political in-fighting, global events and a narrative of fiscal tightening instead suppress consumer confidence, whilst an AI media-led backlash sows further uncertainty resulting in spending stagnation and delayed decision-making. The sectors that were bouncing back hold firm, but further growth slows, and we enter a holding pattern as we await stability. But I’m an optimist – there are enough reasons to be hopeful and for the UK to find sustained growth after the last few years.
Louise Ioannou
Head of workspace UK, HB Reavis
Sum up 2025 in one word: Traction
Do you feel more or less optimistic than you felt 12 months ago?
More optimistic. In 2025, we saw positive traction across transaction activity, reflecting a wider market where demand remains strong in core submarkets for high quality, service-led workspaces. Occupiers are becoming more intentional about where they locate, choosing offices that genuinely support collaboration and team engagement.
What do you think will be the key watchwords/industry trends in 2026?
The trends I expect to shape the market include experience-led workspaces, hospitality-driven service, amenity personalisation, connection and community. Landlords and operators will increasingly focus on delivering environments that enhance the employee experience and support evolving ways of working, while organisations seek spaces that reflect their culture and brand.
Sum up your hopes, fears and expectations for 2026: This year, the workplace feels both promising and ambitious. Occupiers will continue gravitating towards offices that provide genuine experience – spaces that shape culture, support wellbeing and foster a sense of belonging. Amenities will evolve beyond physical features to blend wellness as well as opportunities for social interaction.
My hope is that the industry maintains its momentum in creating thoughtful, human-centred workplaces. Onsite teams who curate activity and build community will be a key differentiator, driving attraction, loyalty and ultimately, long term retention.
The challenge will be ensuring offices remain spaces for meaningful, human connection. As AI becomes more embedded, there is a risk work feels overly automated. The workplaces that thrive in 2026 will be those that leverage technology and flexibility while maintaining the human touch and prioritise creativity, collaboration and engagement.
Just how good is the biggest transfer deal of the summer?