Confidence Returns to UK Real Estate, But Caution Remains
The UK real estate and infrastructure sectors are experiencing a significant rebound in confidence, according to a major sentiment survey conducted by UKREiiF in partnership with Holistic Insight. Based on responses from over 10,800 professionals at the UKREiiF conference in Leeds, the survey shows that 70% of respondents now feel positive about the year ahead, up from 52% in 2024. Negative sentiment has dropped sharply to just 6%.
The optimism spans all UK regions, with particularly strong gains in London, Scotland, Wales, and the South West. Professionals across the industry including developers, investors, consultants, contractors, and public sector bodies also reported a notable rise in confidence.
Despite this renewed optimism, the survey highlights persistent structural challenges. Chief among them is the outdated UK planning system, which over half of developers and more than a third of consultants identified as a top concern. This was echoed by Deputy Prime Minister Angela Rayner at the event, where she called for modernised planning committees and more strategic reform to accelerate housing and infrastructure delivery.
Other key challenges include:
- Geopolitical instability (48%)
- Inflation and cost pressures (41%)
- Political uncertainty (33%)
- Limited access to affordable finance (30%)
Each sector is affected differently, with developers focused on planning, investors concerned with global risks, and contractors wary of political volatility.
UKREiiF Managing Director Nathan Spencer described the findings as a turning point, noting that the industry is eager to move forward but requires government support and coordinated action to overcome long-standing obstacles. He emphasised the importance of continued collaboration between public and private sectors to convert confidence into real progress.
In summary, while sentiment in the UK real estate sector is clearly improving, the road ahead is not without barriers. Addressing planning reform, stabilising the political environment, and improving access to finance will be critical to sustaining the momentum.
