Welcome to This Week in Property, your go-to roundup of the latest developments shaping the UK construction and propery sector. From major government policy shifts to green initiatives and emerging market trends, we’ve pulled together the key headlines you need to stay informed.

Construction sector shows signs of financial recovery

The construction industry is showing promising signs of recovery with several major firms reporting improved financial results. Morrisroe has returned to profit and secured a contract to build a new stand at Crystal Palace’s football stadium. Similarly, Willmott Dixon has announced a return to profit while building its order book, and Murphy achieved an impressive 6.3% operating margin.

The broader construction supply chain also shows positive momentum, with builders merchants reporting boosted Q1 results thanks to strong March sales.

Green initiatives and sustainable construction

Sustainability continues to be a focal point in the industry. Hemp insulation has secured Ofgem approval, representing a significant step forward for green building materials. East Riding council homes are receiving green retrofit.

Landlords are being warned to take advantage of green mortgage savings or risk missing out on financial benefits.

Major development approvals

Several significant development projects have received the green light this week. Mace has been approved to start its Natural History Museum project, and Vistry has received approval for a 526-home Derby development. Additionally, Grosvenor’s Belgravia office refurbishment has been approved after delays related to Crossrail 2 safeguarding.

Housing and rental market updates

The Build-to-Rent sector is experiencing significant growth, with investment hitting new highs and record levels of completions in Q1, showing a 50% surge in investment over the past year.

The first-time buyer market remains robust, with first-time buyers accounting for two-thirds of mortgage customers in 2024, and the sector is tipped to be the strongest for the rest of 2025. Rightmove has published an informative piece on what buyers can purchase with the average first-time buyer house price.

Policy changes and government initiatives

Significant policy shifts are underway that could reshape the construction and property landscape. The government has announced reforms to boost SME housebuilding, with Housing Minister Angela Rayner describing smaller builders as “the bedrock for change. The reforms include loosening strings for SME house-builders.

In a move that could significantly impact land banking, councils could get power to seize builders’ land banks.

On the regulatory front, roof garden status has been clarified as not counting as a storey, providing clarity for developers, and the CITB is rolling out new plant training standards.

Health, safety and legal issues

In the property sector, an estate agency boss has suffered devastating financial losses after an assistant stole £166k, while landlords are being warned about ‘ticking time bomb’ air fryers posing potential safety risks in rental properties.

Investment and commercial property insights

The investment landscape shows varied activity across different sectors. HMO conversions are giving investors returns of 10%, while research reveals the capital city postcodes with the best buy-to-let yields.

In commercial property news, a major stake in Manchester Arndale is on the market for £235m.

This week’s developments show a construction and property sector displaying signs of recovery and transformation. Financial improvements at major firms, government support for SME builders, and sustained growth in Build-to-Rent and first-time buyer segments suggest positive momentum. Meanwhile, green initiatives and technological innovation continue to reshape how the industry operates, pointing toward a more sustainable and efficient future.

Stay ahead of the curve by joining us at our upcoming property events. Connect with industry leaders, gain insights from expert speakers, and network with fellow developers, investors, and professionals. Whether you’re new to property or scaling your portfolio, our events are designed to keep you informed and inspired.