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If Brexit related-economic fears recede, the UK will see a strong increase in development over the next two years.


Construction has been relatively weak over the past few years, despite profound supply shortages in many sectors. The focus will be on delivery of more sustainable buildings using new materials and new construction techniques. Net zero carbon will be the target – and environmental objectives could challenge the viability of schemes. Government support may be required to meet these objectives.


Inflation in construction costs looks set to moderate over the next couple of years as the pound strengthens and global demand falls.


This would ease developer concerns over viability and would enable higher volumes. There are two risks to this: firstly, that shortages caused by any changes in immigration policy could push up costs, despite tailwinds elsewhere; and that with many contractors focussed on smaller, manageable sites, the costs involved in larger developments – and the lack of competition – could rise much more quickly. This could particularly apply to urban development hotspots.


Health & wellbeing will become ever more important in building design and management.


Occupiers will become ever more selective in their choice of premises, given the importance now attached to recruitment and retention – and the evident link between health and productivity. Assessments will take centre stage - WELL certified buildings, FitWELL and other schemes and principles for other asset classes. Data on building performance in this area will become more transparent and accessible, driving in turn more emphasis on the importance of healthy spaces. This will not just be confined to the office sector – it is an increasingly a theme in industrial & logistics, as well as education and health.


UK Property Predictions 2020


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