Following today's UK Government Spring Statement, our Head of Research & Strategy, Vanessa Hale gives her take on the announcement.
Today’s Spring Statement was muted as anticipated following the changes in the Autumn Budget. For real estate, the more significant story is how the market is adjusting to structural pressures rather than reacting to fiscal measures. The UK property market has moved into 2026 in recalibration mode. Investment volumes proved more resilient last year than many anticipated, underlining that capital continues to back the UK despite political and economic volatility.
We are operating in an environment of constraint. Vacancy rates remain low across many sectors, development pipelines are restricted by viability and planning friction, and regulatory evolution continues to shape investor decision making. Rents are rising in several segments, but supply is not responding quickly enough. At the same time, long term demand drivers are evolving. An ageing population, smaller households and digitally native generations are influencing how space is designed and used. AI linked infrastructure, including data centres and the energy capacity that supports them, is becoming increasingly strategic. Environmental pressures are also sharpening the focus on operational performance and resilience.
For 2026, we are forecasting investment volumes of around £56 billion, representing steady growth on 2025. Pricing is more stable, capital is more decisive and confidence is gradually returning.
What needs to happen now is greater clarity and delivery. Planning reform must translate into viable development. Energy infrastructure needs to scale at pace to support digital growth. Policy consistency will be critical to unlocking supply. For investors and occupiers alike, the priority is disciplined capital allocation, active asset management and a focus on assets that can deliver resilient income and long-term relevance in a more selective market.
Vanessa's commentary has since appeared in CoStar, Estates Gazette, Property Week, Introducer Today, Edie, and Property Industry Eye.
