Welcome to This Week in Property, your essential update on the latest UK construction and property news. The UK property market has entered 2026 with a mix of renewed optimism and ongoing caution. From encouraging price movements and rising buyer activity to major planning approvals and shifting investment trends, there are clear indicators that confidence is beginning to return. At the same time, regulatory changes, enforcement action, and uneven performance across different market segments highlight the need for developers, investors, and agents to stay informed and adaptable.

Positive signs in the housing market

The housing market is showing early signs of recovery. January asking prices rose at the fastest pace in a decade, according to Rightmove. The MHCLG has pointed to ‘green shoots of recovery’ as English construction starts rise 18%. Estate agents have also started 2026 strong with increased buyer enquiries, viewings, and offers, while RICS reports sales expectations have hit a 14-month high as property market confidence returns.

However, there are still some challenges, as country house prices fell again in Q4 2025, though the rate of decline is slowing.

Major residential developments

Several major residential developments have recently received approval. Ballymore has secured planning permission for 1,685 homes in Newham, East London. Meanwhile, HUB has submitted plans for a 490-home, mixed-use development in Hackney. In Leeds, Pullans won approval for a 14-storey PBSA tower.

Commercial property & investment trends

In the commercial property sector, JLL predicts offices will attract the highest real estate investment in 2026, indicating a potential shift in investment priorities.

The Build to Rent (BTR) sector is also showing strong growth, with investment volumes rising 14% year-on-year to £4.7bn according to CBRE. This reflects how UK Build to Rent investment gained ground in 2025.

Legal & regulatory news

In regulatory news, Westminster has adopted a retrofit-first policy, signalling a potential shift toward renovation rather than demolition.

Enforcement remains a key issue, as a builder was fined after failing to comply with HSE notices, highlighting the importance of regulatory compliance.

More seriously, six people have been arrested over a suspected £300m fraud at Home REIT, as the Serious Fraud Office launches a fraud and bribery probe.

Technological adoption

The industry is increasingly embracing technology, with half of agents planning to adopt AI in 2026. However, there is a size divide in AI adoption among estate agents, suggesting larger firms may have an advantage when implementing new technologies.

Overall, the latest updates suggest a market that is slowly regaining momentum, supported by increased activity, strategic investment, and growing adoption of technology across the industry. While challenges remain, particularly around compliance and certain pricing pressures, the direction of travel points toward gradual recovery. For property professionals, keeping close to these trends will be key to identifying opportunities and navigating risks as the year unfolds.

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