With a raft of regulations and legislation still stuck at consultation stage, Richard Steer FCIOB calls on the government to give construction greater clarity in 2026.
Every January, millions of us dutifully announce our New Year’s resolutions. As we enter 2026, I am wondering what resolutions the Labour government has set for itself. And more importantly, which ones it actually intends to keep.
Several of the most important policy commitments shaping our industry’s future remain stuck in a familiar holding pattern – high on ambition, low on delivery. This risks stalling investment, slowing decarbonisation and undermining confidence across the built environment.
Take the Future Homes Standard (FHS) and Minimum Energy Efficiency Standards (MEES). The 2023 consultation for the FHS promised clarity on low-carbon homes. MEES was meant to do the same for the performance of non-domestic buildings.
Yet the detail is still nowhere to be seen. The FHS was expected last autumn; instead, we were told it was “possibly” weeks or months away. That kind of ambiguity leaves project teams guessing: will thermal thresholds tighten? How will heat technologies be judged? What happens to schemes already in design? Without answers, decisions stall.
Reform of the Energy Performance of Buildings regime – widely welcomed for proposing EPCs that reflect real-world performance – has also drifted. Consultants are modelling outcomes based on assumptions; clients are getting scenarios instead of solutions. The industry can adapt quickly when required, but it cannot plan on shifting ground.
The same fog surrounds the Decent Homes Standard. Councils and housing associations accept the need for modernised criteria on safety, accessibility and energy performance. But until the legislation lands, it’s impossible to embed requirements into long-term investment plans. In a climate of stretched budgets, committing major capital on hypothetical guidance is unrealistic.
Planning reform is similarly stilted. CIOB has been proactive in responding to the government’s working papers on site thresholds and build-out rates – technical issues with major practical consequences. Yet nothing is confirmed, and planning risk continues to increase. Developers respond by adding contingencies, stretching programmes and slowing delivery.
New home delivery slows
There are some scary statistics that show the state of our sector at the moment. The number of housebuilding applications received in the year ending September 2024 was the lowest on record (going back to 2005). It is not improving 12 months on. Savills UK says that new home delivery has dropped to a seven-year low (excluding covid) and cited the planning system as the main problem. Meanwhile, in a report from the Home Builders Federation, 88% of developers (a record high) said planning delays were “a major constraint on delivery”.
Against this background, the total number of people employed in construction fell to its lowest level in more than a quarter of a century in Q3 2025, and the sector’s share of overall UK employment dropped to an all-time low.
In terms of improving delivery in the built environment, ambition is high, but policy certainty is low. Contractors want to plan; designers want to commit; clients want to invest; cost managers want to budget responsibly. Instead, they’re modelling multiple futures because the government hasn’t settled on one.
Construction is one of the most resilient sectors in the UK economy. When given clear rules and realistic timelines, we deliver: on safety, sustainability and scale.
But uncertainty slows everything. It depresses investment, inflates costs and drags on productivity. If the government wants this industry to help drive growth, decarbonisation and the housing pipeline, it must provide the frameworks that make planning possible.
Like any New Year’s resolution, success starts with the basics: set a goal, stick to it, communicate clearly, and review when needed. Progress only begins with a decisive first step. If the government can take that step this year, the industry will do the rest.
Richard Steer FCIOB is chair of Gleeds Worldwide.
