After recently navigating the vibrant, often busy and compelling world of the UK Real Estate Investment & Infrastructure Forum (UKREiiF) in Leeds, I’m left with sore feet, a worn-out lanyard, and a lot of ideas for the year ahead.

Having attended the conference each time since it began, it’s one that I always look forward to for the opportunity to connect with old contacts and meet brilliant new people in the sector. With upwards of 16,000 attendees – including ministers, mayors, chief executives and consultants galore – it’s less of a conference and more of a pilgrimage. Think MIPIM without the sunshine of the South of France, although this year Yorkshire was blessed with much better weather than we experienced in 2024.

Consistently, the conference provides a brilliant opportunity to take the pulse of the real estate sector – with a few themes coming through loud and clear. It was welcoming to see that Central Government Agencies such as Homes England and the Government Property Agency are becoming central to regeneration efforts UK-wide and their partnering approach is a key asset in closing viability issues for multiple parts of the UK.

Housing

Top of the bill: housing. The general consensus, expressed with cautious optimism, was that the residential investment market has either bottomed out or is at least getting worse more slowly. Not quite a ringing endorsement, but in a sector where sentiment often drives strategy, the mood music is gently shifting from minor key to something more upbeat.

That said, no one’s dancing just yet. The hoped-for rate cuts that might trigger a proper rebound were dealt a blow midweek with a surprise uptick in inflation. Cue furrowed brows and recalibrated forecasts. We’re probably still three to six months – and a couple of Bank of England nods – away from any real momentum.

But when the turn does come, there’s a veritable wall of capital lining up to flood in, especially from pension funds with mandates to deploy into stable, long-term residential assets. What was striking is the level of creative thinking going into this future investment wave. It’s not just about stacking up units anymore; it’s about multi-tenure, long-term stewardship and genuine community benefit.

One sector poised to benefit is ‘later living’ rental, which several voices suggested could become the breakout star of the next investment cycle. With demographic tailwinds and a glaring undersupply, it ticks every box for the institutional crowd. That’s assuming, of course, we can actually get things built – which brings me neatly to planning.

Planning

Here, there were some positive noises. Several attendees spoke of real improvements in planning approvals and engagement, especially at local level. There’s a sense that lessons have been learned and that, despite staffing challenges, some authorities are progressing at pace.

But – and it’s a big but – the Building Safety Regulator is fast becoming the sector’s pantomime villain. Numerous developers and directors shared stories of delays, dysfunction and a general sense that the system is not just overwhelmed but fundamentally ill-equipped. Residential projects over 18 metres are particularly affected, with approvals grinding to a halt and investor confidence evaporating accordingly. The result is that gains in planning are being undone by a parallel system that’s choking delivery.

Energy

The energy sector was also a keen topic of conversation. Small modular reactors and renewables continue to be areas to watch with talk of energy plants being sited near or in the footprint of data centres. The Heathrow power outage debacle is making the energy sector think imaginatively about co-location opportunities, with ever-increasing security challenges being a consideration.

All in all, UKREiiF as a barometer for the state of the built environment was both heartening and dispiriting – a reminder that the real estate sector remains full of energy and ideas, but still challenged by structural blockages that no amount of networking or deal-doing can fix overnight.

Still, it’s good to know that the industry remains willing to turn up, speak out and, crucially, share stories – especially if you can catch them between panel sessions or while out and about enjoying some sunshine in the North. I left the conference full of positivity, and am looking forward to next year’s discussion already.

First published on Construction News on 12 June 2025.