As we move through 2026, the UK property market presents both challenges and opportunities for developers. **Market Conditions** Interest rates have stabilized, bringing more certainty to development financing. Build costs have begun to normalize after significant increases. **Opportunities** - Strong demand for quality residential developments - Growing interest in sustainable building - Office-to-residential conversions - Build-to-rent sector growth **Challenges** - Planning system reforms - Nutrient neutrality requirements - Skills shortages in construction - Material cost volatility **Our View** We remain optimistic about well-located, quality developments that meet genuine housing needs.