Confidence returns to UK real estate but challenges remain, says UKREiiF study

LONDON, May 28, 2025 /PRNewswire/ -- Confidence is returning to the UK real estate and infrastructure industry, according to the UKREiiF Real Estate Market Sentiment Survey. Based on 10,874 responses from professionals who attended UKREiiF in Leeds last week, the survey revealed a sharp rise in optimism across all regions and professions, despite ongoing concerns around planning, costs and geopolitical instability.

The research, conducted by UKREiiF in partnership with Holistic Insight, showed a marked increase in confidence, based on responses from industry professionals who were asked to rate how positive they feel about the year ahead compared to how they felt this time last year.

• Positive sentiment increased from 52% to 70%, while negative views dropped from 17% to just 6%
• All UK regions reported improvements, with London, Scotland, the South West and Wales each recording gains of 17 percentage points or more
• Developers (+18 points), contractors (+14 points), investors (+16 points), consultants (+18 points), occupiers (+14 points) and public sector bodies (+16 points) all reported feeling more positive about the year ahead.

However, optimism is not uniform, and several challenges remain. Chief among these is the planning system. Over half of developers surveyed cited planning as one of their top three concerns, joined by 36% of consultants. This sentiment was reflected in Angela Rayner's speech at UKREiiF, where the Deputy Prime Minister and Housing Secretary acknowledged the need to modernise planning committees and introduce strategic planning reforms.

Rayner's comments echo the findings of the survey, which indicate that planning delays, policy ambiguity and delivery bottlenecks remain key barriers to unlocking housing and infrastructure growth.

In addition to planning, the survey highlighted five consistent challenges across the industry:

1.  Geopolitical instability (48%)

2.  Inflation and rising costs (41%)

3.  The UK planning system (35%)

4.  The UK political landscape (33%)

5.  Cost and availability of finance (30%)

These challenges affect each part of the sector differently, with the top concern varying by group:

• Developers most frequently cited the planning system as their key barrier
• For investors, geopolitical instability topped the list – which was the same for the public sector
• Contractors were most concerned about the UK political landscape

Nathan Spencer, Managing Director of UKREiiF, said: "Our survey highlights an industry that is ready to move forward, with nearly 70% of professionals expressing optimism about the year ahead. That confidence is visible across all UK regions and every part of the project lifecycle. However, the findings also make clear that barriers remain – particularly around planning. It's encouraging to see this echoed in the policy discussions taking place at UKREiiF.

"There is a real opportunity now to convert that optimism into action, and UKREiiF has a unique role to play in that. By bringing together every side of the industry – public and private – we create a space where shared challenges can be addressed collaboratively. We hope to see this spirit of collaboration continue beyond the event."