HEALTH SECTOR NEWS
Positive outlook for healthcare construction market
A new report from Rider Levett Bucknall has found that the UK healthcare market remains one of the more resilient segments of the construction sector. In its Construction Market Intelligence Q3 report, healthcare construction management consultancy RLB found that despite wider market uncertainty, healthcare continues to offer a relatively stable pipeline, supported by NHS estate renewal requirements, long-term capital investment programmes, and a growing need to modernise ageing healthcare infrastructure. The report found that, after a challenging period, the market returned to modest growth in 2025, with public sector investment in healthcare providing a significant proportion of activity. This growth should strengthen through 2026 and beyond, although it is likely to be measured rather than rapid. New hospital developments, estate rationalisation programmes, community healthcare facilities, and backlog maintenance projects are all
supporting demand. The report reveals that key growth
drivers include: n NHS estate modernisation: a significant proportion of the NHS estate is ageing and requires major refurbishment or replacement. The government’s New Hospital Programme remains a cornerstone of healthcare construction activity. The programme was reset in 2025 to provide a more realistic timetable aligned with funding and market capacity.
n Capital investment: NHS England continues to allocate significant capital funding (circa £5bn for 2025/26) to support operational improvements, backlog maintenance, equipment replacement, and strategic developments.
n Community and outpatient care: the shift towards community-based healthcare and integrated care systems is generating opportunities beyond acute hospital projects continues. Investment in diagnostic centres, community hubs, mental
health facilities, and primary care estates is expected to increase seeking to reduce pressure on hospitals while improving patient access.
RLB’s national head of healthcare Adam Hurst said: “The outlook for UK healthcare construction market is positive. While funding constraints and delivery challenges remain, healthcare benefits from strong underlying demand, political priority, and a substantial pipeline. Public investment in health infrastructure is expected to remain a key contributor to construction growth through the remainder of the decade. “For consultants, supply chain
partners, and contractors, the healthcare sector represents an attractive construction market. Success will depend on sufficiently skilled workforce, proven healthcare delivery experience, capability in modern methods of construction (MMC), and the ability to navigate evolving NHS procurement and sustainability requirements.”
Solar and battery solution for Devon NHS Trust
A new 1.042 MW solar array and battery storage solution has been switched on at Langdon Hospital in Dawlish, Devon. The installation – funded through a national clean energy grant awarded to Devon Partnership NHS Trust by the Department for Energy Security, Net Zero and Great British Energy – is set to save the hospital nearly £185,000 a year, meeting over 60 per cent of its electricity needs. Following its official switch on
by Martin Wrigley, MP for Newton Abbott and Phill Mantay, chief executive at Devon Partnership NHS Trust, the ground-mounted solar-park and battery storage installation – designed and delivered by renewable energy specialist SunGift Solar – is now generating clean power which feeds directly into the hospital’s operations. The project is expected to
reduce carbon emissions by over 145 tonnes annually. Central to the project’s
‘Living skies’
ceiling installation for Cornish hospital
Patients recovering from surgery at St Michael’s Hospital in Hayle, Cornwall are now benefiting from an enhanced recovery environment. A ‘living skies’ ceiling has been installed in the Theatre Recovery Unit, funded by a £2,340 donation from the Royal Cornwall Hospitals Charity. The innovative ceiling feature
creates the illusion of looking up at a bright blue sky, helping to transform a clinical space into one that feels more calming and reassuring.
For patients recovering after
treatment, the soothing visual environment can help reduce anxiety, promote relaxation, and improve their overall hospital experience. It also creates a more pleasant and supportive workspace for the staff who care for patients every day. The installation is part of
performance is the combination of high-efficiency JA Solar panels with Sigenergy’s hybrid inverters and battery storage solution. Across approximately 3.5 acres of
land, 1,628 solar panels have been installed using an innovative low carbon steel ground mount structure made by Solarport, which results in a 66 per cent reduction in embodied CO₂ compared to conventional mounting frames. The benefits of the PV system are maximised using onsite batteries. These enable Langdon Hospital to store excess solar energy generated during the day, which can then be drawn on overnight or during high-
demand periods. This significantly reduces the hospital’s reliance on – and exposure to – peak demand grid prices, and opens up the potential for energy exports to the grid, that could bring in thousands of pounds of income to the Trust. Phill Mantay, chief executive at
Devon Partnership NHS Trust, said: “This investment not only supports our commitment to sustainability but also ensures significant cost savings that can be redirected into enhancing patient care. By embracing renewable energy, we are taking a crucial step towards a greener future for our organisation and the wider NHS community.”
Royal Cornwall Hospitals Charity’s ongoing commitment to improving hospital environments across Cornwall and the Isles of Scilly, helping to create spaces that support wellbeing, comfort, and recovery. Shelley Jackson, clinical
matron, said: “We are absolutely delighted to have the living skies ceiling installed in our Theatre Recovery Unit. Recovering from surgery can be an anxious time for patients, and being able to wake up to a calming image of the sky can make a real difference to how they feel during those first moments after their procedure. “The feedback from staff has been incredibly positive, and we know this enhancement will help create a more comforting and reassuring environment for the many patients who pass through our department each year.”
November 2026 Health Estate Journal 23
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