Welcome to This Week in Property, your essential update on the latest UK construction and property news. The market continues to navigate a period of change, with first-time buyer activity, regulatory updates, and environmental initiatives shaping the landscape. In this blog, we explore the latest trends, industry challenges, and outlooks that homeowners, investors, and developers need to know as we head into 2026.

First-time buyer activity

First-time buyers have borrowed a record £82.8 billion this year, demonstrating resilience in this segment despite challenging market conditions. Savills has noted that “home ownership has become more accessible” for certain buyer groups, offering a positive counterpoint to the broader market uncertainty.

Regulatory and safety concerns

The House of Lords committee has criticised delays in the Building Safety Regulator, calling them “unacceptable” and urging faster progress in implementing post-Grenfell safety measures. The BSR is “not yet functioning effectively,” according to industry warnings following the Lords report.

In a concerning development for workplace safety, builders have been fined £500 for asbestos failings, highlighting the ongoing importance of proper hazardous material management in construction projects.

Market recovery projections

RICS has reported that the housing market recovery is likely delayed until spring 2026, with their survey revealing a ‘weakened’ residential market following the recent Budget announcements. According to Estate Agent Today, industry experts are cautioning about prolonged uncertainty in the market.

Despite these challenges, Rightmove data indicates that while asking prices have dipped, hopes are rising for a traditional Boxing Day bounce in activity. Property Wire reports that prices are expected to rise by 2% in 2026 as mortgage rates dip, offering some optimism for the coming year.

Industry commitment to carbon reduction

Scottish Water has committed to a new low carbon threshold, joining the growing number of utility companies focusing on sustainability goals. This commitment aligns with broader industry efforts to reduce carbon emissions in infrastructure projects.

B&Q is now offering the innovative K-Briq, a sustainable construction product that represents a step forward in eco-friendly building materials. Meanwhile, Rightmove’s report indicates that homes are getting greener, albeit at a slower pace than needed to meet climate targets, according to Estate Agent Today.

Industry outlook

The construction industry’s price forecasts have not been significantly impacted by the recent Budget, according to RLB’s analysis. However, Berkeley has warned of a potential skills exodus in the supply chain, raising concerns about workforce capacity as the industry faces ongoing challenges.

Housebuilding has fallen to its lowest level since the pandemic, according to Property Investor Today, highlighting the significant challenges facing the residential development sector despite government targets to increase housing supply.

As the property market adapts to evolving regulations, sustainability goals, and shifting buyer behaviour, staying informed is key. Whether you’re a first-time buyer, investor, or industry professional, keeping an eye on these trends will help you navigate the challenges and opportunities ahead in 2026.

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