top of page

Development Sector Optimistic Yet Constrained By Market Pressures


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.”






Most Read

Family Business Founders Awarded Freedom Of The City Of London

Family Business Founders Awarded Freedom Of The City Of London

Dan Drogman and Tom Drogman, co-founders of Smart Spaces, have been made Freemen of the City of London, in recognition of their contribution to the City, innovation in the built environment, and international business leadership.

Leonard Curtis Secures £15M Finance Deal For Charles Trent

Leonard Curtis Secures £15M Finance Deal For Charles Trent

Leonard Curtis has secured a £15 million refinancing and growth facility for Charles Trent Limited, providing increased working capital and long-term headroom to support continued expansion, investment in innovation and the scaling of its circular-economy operations.

Bechtel Secures Contract Extension At Waste Isolation Pilot Plant

Bechtel Secures Contract Extension At Waste Isolation Pilot Plant

Bechtel announced it received a three-year extension from the U.S. Department of Energy (DOE) to continue managing and operating the Waste Isolation Pilot Plant (WIPP) in Carlsbad, New Mexico.

Categories

  • lindaandrews071
  • Mar 27, 2025
  • 2 min read


Despite the race to attract and retain top talent heating up this year, company financials will still be taking centre stage for many businesses. Concerningly, only 1 in 10 professionals feel like their employer will be listening to what their employees want.


In a recent survey – from global talent solutions business Robert Walters – 69% of professionals stated that company financials will be the leading factor driving change in their workplace – followed by the wider economy (12%), what workers want (10%) and competitors (8%).


Chris Eldridge – CEO of Robert Walters UK and Ireland:

"The war for talent is intensifying, and businesses can no longer afford to stand still. The most forward-thinking companies are already doubling down on adaptability, digital transformation, and a human-first approach to stay ahead. In an era where workplace change is being shaped by employee demands more than ever, the ability to discern key employee values and apprehend them to create a culture where top talent thrives will define the winners and losers of this evolving landscape."

As businesses brace for the workforce of tomorrow, the latest Talent Trends 2025 report from Robert Walters reveals the game-changing shifts redefining hiring, leadership, and workplace culture.


From AI-powered recruitment to ‘window working’ and human-centric leadership, here’s what’s shaping the future of talent:


  • AI in Hiring – 3 in 10 companies are integrating AI, but while automation accelerates hiring, the human touch remains irreplaceable. Smart businesses will balance tech with human judgment.

  • People-First Leadership – Organizations that embrace empathy, flexibility, and purpose-driven leadership are 2.6x more likely to achieve business success.

  • Candidate Experience is Everything – 83% of professionals say a poor interview experience can change their perception of a business. Companies must treat applicants like valued customers.

  • Hybrid Work Reimagined – As the quest for flexible work continues, a variety of concepts will be trialed and tested from the 4-day week to ‘window working’ - offering structured flexibility to maintain engagement and productivity.

  • Climbing the Career ‘Lattice’ – The traditional career ladder is out. Employees are opting for lateral moves, cross-functional growth, and skills-based progression over rigid hierarchies.

  • The ‘Un-Retiring’ Boom – Over 2.8m retirees in the UK have re-entered the workforce, bringing invaluable experience to multi-generational teams.

  • Future Skills Are Key – 39% of job market skills will change by 2030, with businesses needing to upskill employees in both tech and soft skills to stay ahead.

Most Read

Family Business Founders Awarded Freedom Of The City Of London

Family Business Founders Awarded Freedom Of The City Of London

Dan Drogman and Tom Drogman, co-founders of Smart Spaces, have been made Freemen of the City of London, in recognition of their contribution to the City, innovation in the built environment, and international business leadership.

Leonard Curtis Secures £15M Finance Deal For Charles Trent

Leonard Curtis Secures £15M Finance Deal For Charles Trent

Leonard Curtis has secured a £15 million refinancing and growth facility for Charles Trent Limited, providing increased working capital and long-term headroom to support continued expansion, investment in innovation and the scaling of its circular-economy operations.

Bechtel Secures Contract Extension At Waste Isolation Pilot Plant

Bechtel Secures Contract Extension At Waste Isolation Pilot Plant

Bechtel announced it received a three-year extension from the U.S. Department of Energy (DOE) to continue managing and operating the Waste Isolation Pilot Plant (WIPP) in Carlsbad, New Mexico.

Categories

Best-Selling Author To Speak At Tank Museum

Best-Selling Author To Speak At Tank Museum

Best-selling Dorset author of ‘Motherkind’ Zoe Blaskey is to talk at the Tank Museum on ‘why becoming a mum changes everything (and why no one warned us)’.

Property Expert Miles Lester Joins Expanding Law Firm’s London Team

Property Expert Miles Lester Joins Expanding Law Firm’s London Team

A top real estate specialist has joined a London and south coast law firm to act for clients on property issues.

HMG Paints Support River Stories Arts And The Environment Exhibition

HMG Paints Support River Stories Arts And The Environment Exhibition

HMG Paints is combining its passion for Art and the local environment by supporting an upcoming exhibition entitled “River Stories” focusing on the River Irk, the very river that runs through the heart of the companies Manchester site.

Recent Posts

bottom of page