Development Sector Optimistic Yet Constrained By Market Pressures

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New research reveals that the UK development industry is entering 2026 with cautious optimism but is still held back by deep-rooted staffing challenges that are slowing delivery and squeezing project viability. The Development Index – produced by real estate and construction hiring specialist, Cobalt Recruitment – captures the current challenges, along with the opportunities and pressures shaping the year ahead.

A sector stabilising, but still under strain

Drawing on interviews with industry leaders across the UK’s leading property developers, housebuilders, REITs, and investment firms, the report reveals unsurprisingly low sentiment in the market in 2025, but a quiet confidence across the development ecosystem going into 2026, with slow signs of improvement emerging.

Softening finance terms, potential further interest rate reductions, and anticipated policy clarity, particularly around the National Planning Policy Framework, are helping to rebuild sentiment. Yet the challenges remain significant. Increased planning delays, staff shortages, constrained project viability, a shortage of viable schemes for lenders, rising cost pressures, and an acute lack of end occupiers and buyers, are all taking their toll on the market.

Skills shortages remain a barrier to delivery

While there is cautious optimism, this is at risk of being destabilised by growing skills shortages. The Development Index highlights a sector still grappling with evolving talent gaps across certain skills and locations in planning, land, development, technical, design, commercial, and delivery roles, coupled with a challenging market environment.

Employers are increasingly seeking professionals who combine technical knowledge with commercial acumen, ESG fluency, and digital literacy, especially in AI-enabled appraisal and design tools.

With the continued shift toward refurbishment and regeneration projects, which now represent more than four fifths of new schemes underway, the demand for professionals with skills tailored to complex refurbishment, sustainability standards and evolving regulatory frameworks, is also set to increase.

Commenting on the report, Maria Sinclair, Managing Director of Cobalt UK, said:

“The Development Index highlights a UK development market that remains ambitious but increasingly constrained in its ability to deliver. Economic pressures, planning complexity and ongoing skills shortages are emerging as significant risks to progress across the sector."

"Moving from ambition to delivery will require a renewed focus on execution, with investment in skills, stronger development teams and access to the right expertise becoming critical to navigating uncertainty and unlocking growth."

"At Cobalt, we see first-hand how the availability of experienced professionals can accelerate projects and support delivery. The Index is designed to support that discussion, setting out the key pressure points and what the industry must address to move forward with confidence.”

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Paul Andrews - CEO Family Business United
Mar 18, 2025
2 min read

Leicestershire CCC is thrilled to announce the signing of Pakistan Test captain Shan Masood for the 2025 season.

The 35-year-old will be eligible for all three formats, joining new Club captain Peter Handscomb and Netherlands international Logan van Beek as Leicestershire’s overseas options for the upcoming campaign.

Masood is due to arrive at Uptonsteel County Ground following the conclusion of the Pakistan Super League in mid-May, linking up with his new teammates in time for the Foxes’ Vitality Blast opener on 31 May.

A proven run-scorer, Masood has amassed more than 22,000 career runs since his debut in 2007 - including 45 centuries - headlined by a knock of 239 against Sussex in 2022.

The left-handed opener is fast approaching 12,000 runs - with an average touching 40 - in the first-class arena, while he has also proven a dangerous operator in limited overs cricket. The Kuwait-born batter averages 26.53, striking at 125.3 in T20s, and boasts an average north of 52 in List A matches.

As well as being capped on 70 occasions for Pakistan, Masood holds a wealth of county cricket experience. Having enjoyed a spectacular debut season with Derbyshire in 2022 – scoring 1,832 runs from 28 matches – he joined Yorkshire, with his two-year tenure as captain culminating in promotion to Division One last summer.

Upon signing for the Club, Masood said: “I am really excited to have the chance to play all three formats for Leicestershire. I have always admired the Club and have had great conversations with a lot of the team during the last three seasons."

“I love playing at Uptonsteel County Ground. The fans get behind the team in strong numbers and the games I have been a part of have always been a great spectacle."

“The Club has been very competitive in all formats and produced some fantastic young players over the last few years. It is an exciting time to join the Foxes.”

Director of Cricket, Claude Henderson, said: “We are delighted to welcome someone of Shan’s calibre to Leicestershire. He is a proven talent both internationally and in county cricket, and someone who can win matches in all three formats."

“Shan completes a fantastic lineup of overseas additions to our squad. His leadership and experience will be invaluable to the team both on and off the pitch.”

Masood is set to make his Leicestershire debut against former county Derbyshire on 31 May at Uptonsteel County Ground.

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Development Sector Optimistic Yet Constrained By Market Pressures

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