As 2025 draws to an end and thoughts turn to the year ahead, in this series of articles we’ve sourced the viewpoint of various leading industry figures. This time we’ve sought the input of individuals from Ayvens, CBRE NI, SFS, Stonewater, and Wetherby Wall Systems Ltd, to gather their opinions on how the last 12 months have been for construction and to get their predictions for 2026.
Suzanne Phillips, UK Head of Specialist Sales at Ayvens:
“Above all, going into 2026, the construction industry should be aiming to build on the successes of 2025 in sustainability. Our most recent ‘Fleet Sustainability Ranking Report’ showed marked progress in the UK construction sector, which recorded significant positive results across all metrics the report measured. For example, the industry share of diesel vehicles was slashed from nearly 12 per cent in 2022 to just more six per cent in 2024 – a massive step towards cutting emissions.
“Whilst the progress was clear, there were industries that outperformed the construction sector, which sat sixth out of the nine industries measured in the report. This shows a fast pace being set nationwide for sustainable practices as electrification becomes an operational and financial reality. However, it equally demonstrates the possibility for all industries to overcome their limitations and make significant progress.
“The construction industry faces unique logistical and cost challenges – such as the reliance on van assets more so than some other industries – and this demands tailored solutions. To navigate these effectively and progress toward low-and zero-emission mobility, we need to see more businesses in the industry make full use of their fleet data and draw on the expertise and on-the-ground support available.”
Brian Lavery, Managing Director at CBRE NI:
“Anybody who has been involved with, or studied, the property market will know that it is cyclical in nature. This is not always a boom-and-bust scenario, sometimes it is a period of malaise. The intrinsic issues within the Northern Ireland market have been heavily reported, with perhaps the most significant being a difficult planning process which is both uncertain and lengthy in nature.
“Planning problems are often exacerbated by a lack of co-operation between appointed officers, councils and utility boards, with shortages in power allocation and mains water and sewage solutions being extremely difficult to overcome. Underinvestment in our utilities has created a situation in which new development is almost denied before it has even entered the planning system.
“Another factor impacting the construction sector is the high cost of finance, with many high street banks opting not to back construction projects in favour of the deposits and commercial banking sectors. The general increase in labour and raw materials costs is also proving detrimental – in some cases we have seen an estimated doubling of costs for square footage built in the commercial sector.
“On a more positive note, there is increased demand within the medical and healthcare sector, and also to some extent in the purpose-built student housing market, although this will inevitably reach saturation point in the coming years and build to rent projects should take its place.
“To kickstart construction in the commercial market in 2026, the sector will require an improvement in the money markets along with a marked improvement in planning, utility provision and government support for development.”
David Wigglesworth, Head of Region Northern Europe and Member of Segment Management at SFS:
“As 2025 comes to a close, our industry has spent much of the year adapting to the realities of the Building Safety Act (BSA) and the requirements of Gateway 2. These measures are vital for raising safety standards, but the practical challenges have been considerable. Extended planning timelines, heavier documentation demands, and inconsistent interpretations of regulations have, at times, unsettled project teams and dampened investor confidence – creating hesitation when clarity and certainty are needed most.
“This year has also underscored the critical role manufacturers play. The Code for Construction Products Information (CCPI) continues to drive a cultural shift toward accuracy, transparency, and integrity in product data. 2025 reaffirmed that reliable, well-structured information is not just helpful; it is essential for principal designers and contractors navigating this new regulatory landscape.
“Sustainability has also become a defining factor in decision-making. Carbon reporting, material efficiency, and the long-term environmental impact of construction products increasingly influence design choices and investment strategies. Clients now expect solutions that deliver both compliance and climate responsibility.
“Looking ahead to 2026, we have an opportunity to move forward with greater confidence. By strengthening collaboration between manufacturers and project teams, embracing clearer product information, and keeping sustainability at the forefront, we can unlock delayed projects, rebuild trust, and continue shaping a safer, more secure, and more sustainable built environment.”
James Bradbury, Group Director of Growth and Development at Stonewater:
“We saw two realities in the construction and wider housing sector in 2025: economic pressure and regulatory necessity. The viability gap remained the biggest challenge, due to high labour costs and the new building safety regulations. This forced tough decisions, but it also sharpened focus on efficiency.
“A welcome signal in the Autumn Budget was the £48m to fund 350 new planners. The bottleneck of planning approvals has been a major inhibitor of speed and volume, and this investment is a critical first step towards unblocking the pipeline towards the 1.5m homes target.
“The government’s commitment to the Warm Homes: Social Housing Fund has been a lifeline. This year, we were allocated over £18m in Warm Homes funding, which will support the retrofit of over 1,600 homes.
“This funding is essential for meeting the Future Homes Standard across our existing stock, aligning our social and sustainability goals. However, we urge the government to publish the full Warm Homes Plan promptly to give the supply chain the long-term confidence it needs to scale up.
“Looking ahead to 2026, the focus is maximising delivery within the Social and Affordable Homes Programme (SAHP). We anticipate increased reliance on Strategic Partnerships and for-profit involvement for funding certainty and flexibility to aid a strong delivery pipeline. Meanwhile, Section 106 remains a steady and regulated source for local infrastructure and affordable homes. These approaches, among others, will help the sector move from strategy to accelerated, high-quality affordable housing delivery.”
Joe Ragdale, Technical Director at Wetherby Wall Systems Ltd:
“2025 has been a year shaped by rising demand for retrofit and energy-focused upgrades. With households facing higher energy bills and public funding directed towards decarbonisation, councils, housing associations and private landlords have renewed their focus on improving existing stock. Although the wider construction market has been uneven, retrofit programmes have provided a steadier route forward, particularly across regions with older housing and higher heat-loss issues.
“Planning delays and labour shortages have continued to create challenges through 2025, yet demand for energy-focused upgrades remains steady as retrofit programmes gain more attention across housing and public-sector work. Public funding set out in the recent Spending Review is expected to support activity into 2026, particularly for schools, hospitals, social housing and wider programmes linked to energy performance. Skills remain a major concern, as the gap between available workers and project demand has widened, but new apprenticeships, skills bootcamps and updated training routes introduced this year are helping to expand the number of qualified installers.
“Looking into 2026, we expect momentum to grow as housing and public sector funding flow into practical delivery. The Future Homes Standard and wider net-zero goals will drive more attention towards fabric upgrades, and this places insulation at the centre of long-term planning.
“We hope that continued investment gives the sector a consistent programme of work that allows firms to train, plan and deliver at scale. If this happens, the retrofit market will be one of the most stable parts of construction over the next year.”