Construction Look Ahead 2026: What You Need to Know, Key Legislations and Updates

February 19, 2026

In this article, we outline the key recent and anticipated changes affecting the construction industry in 2026 and consider their potential impact on the sector. Some of these developments are already in force, with the relevant legislation enacted, while others remain at the proposal stage and are expected to progress through Parliament or the courts during 2026. In all cases, staying informed is essential.

Legislative Updates:  the Building Safety Levy (BSL) is set to come into force 1 October 2026 (“Effective Date”) and its primary purpose is to establish a fund for the remediation costs of unsafe residential buildings in England following the Grenfell Tower tragedy and the subsequent safety inquiries.  The Levy is set to apply to the residential development sector, and only to Building Control Approval application submitted on or after the Effective Date. It does not apply to applications submitted before this date, even if they are amended afterwards.

BSL is regulated by the Building Safety Levy (England) Regulations 2025, and it applies in only England.

What Developments would this Levy Apply to:

For a new residential development to fall within the ambit of the BSL, it must constitute, or form part of a “Major Residential Development”. This essential means:

  1. New residential developments containing 10 or more new dwellings or 30 or more new bed spaces for Purpose-Built Student Accommodation (PBSA)
  2. Change of use to dwellings or PBSA which creates new residential floor spacing meeting the threshold stated above.
  3. Any extensions that essentially creates new residential floor space meeting the threshold stated above.
  4. In cases of mixed-use development, this would apply only to the residential component of a mixed-use development, provided the residential part meets the “Major Residential Development” threshold.

More importantly, it is the planning application that is used to determine whether the proposal falls within the relevant threshold. Therefore, if your planning application includes a certain number of new dwellings (for example, 15), but your building control approval application includes only 9, the BSL will still apply, as the determining figure is the number of dwellings stated in the planning application.

Exemptions

There are two primary categories of exemption. These are Exempt Persons and Exempt Developments.

1. Exempt Persons: this includes:

    1. Non-profit registered provider of social housing; or
    2. Wholly owned subsidiary of a non-profit registered social housing provider.

    It is important to note that a Joint Venture is only exempt if every party in the joint venture meets the criteria for an Exempt Person.

    2. Exempt Developments: The development itself is exempt if it falls within specific categories of residential or supported housing, including:

    • Social Housing
    • Supported Housing
    • Accommodation for victims of domestic abuse
    • Hospitals
    • Children’s Homes
    • Care Homes and Hospices
    • Hotels/Hostels
    • Prisons/Secure Residents
    • Accommodation for the Armed Forces
    • School accommodation (This means student residential accommodation provided by the school)
    Additional Points on BSL:
    1. Basis of Calculation: The levy is calculated on the residential floor space of the development, and the rates are set per square metre.
    1. Collection Authority: The levy will be collected by the local authority that holds the statutory building control responsibilities for the area where the building is situated.
    1. Potential Discount: Developers may be eligible for a 50% discount on the levy rate for developments on Brownfield land (previously developed land).

    Closely tied to this is the transition of the Building Safety Regulator (BSR) into an independent body from the Health and Safety Executive (HSE) to become an “arm’s length” body of the Ministry of Housing, Communities and Local Government (MHCLG). This took effect on 27th January 2026.

    The purpose of this transition is to lay the foundation for a Single Construction Regulator, with the responsibility of promoting high standards of competency and driving a total culture change across the sector, while supporting the government’s ambition of building more homes and ensuring that every new and existing building is safe for its residents. It also intended to accelerate the remediation of unsafe buildings.

    For the industry, this points toward a more streamlined system in which building safety, construction products, and professional standards all fall under one regulatory body. Consultations on the proposed Single Construction Regulator are ongoing, with the next round scheduled for March.

    On remediation, following the government’s introduction of the Remediation Acceleration Plan (RAP) which was first published in December 2024 and updated in July 2025, the government now plans to bring forward the Remediation Bill, aiming for Parliament to consider it sometime in 2026.

    The main objectives of the RAP as set out are (i) fix buildings faster (ii) Identify all 11m residential buildings with unsafe cladding so that every building with unsafe cladding is found and fixed; and (iii) support residents so that leaseholders and resident of buildings with unsafe cladding can get the support they need.

    Flowing from this, the Remediation Bill is intended to create a legal duty that compels landlords to remediate their buildings within fixed time scale and under these new rules, avoidance is no longer an option as those who fail to remediate risk criminal prosecution. To enforce this, a dedicated Remediation Enforcement Unit will be established within the Building Safety Regulator.

    Key timelines for remediation which the Bill seeks to introduce are as follows:

    1. By the end of 2029, every residential building over 18 metres within government-funded schemes will be fully remediated; and
    2. By the end of 2029, every 11 metres building with unsafe cladding will either have been remediated or have a date for completion. Otherwise, its landlord will be liable for statutory penalties.
    3. By the end of 2029, if a landlord fails to remediate a building over 18 metres without reasonable excuse, they can be criminally prosecuted, face unlimited fines and/or imprisonment
    4. For buildings between 11 and 18 metres, those that have not been remediated or scheduled for completion by the end of 2029 will be referred to regulators for investigation and possible enforcement action. All work on these buildings is expected to be fully completed by 2031,and failure to meet this deadline without a reasonable excuse will constitute a criminal offence punishable with fines and/or imprisonment.

    For key players in the construction industry, the primary takeaway is that given the 2029/ 20231 deadlines that are looming, now is the time to initiate the remediation of defective buildings. Taking a proactive step today is the most effective way to avoid being caught in the upcoming wave of enforcement procedures and potential criminal liability.

    JCT Contract Update: Aside from new legislation, the contractual landscape in construction is also shifting, with major news coming from the Joint Contracts Tribunal (JCT) who have announced that the JCT 2016 edition will be officially withdrawn on 31st March 2026. After this date, the 2016 suite will no longer be available for purchase in either hardcopy or digital formats from the JCT store.

    For business currently planning new projects, this marks a clear transition point to the JCT 2024 edition. While contracts already in place under the 2016 suite remains valid, migrating new instructions to the 2024 suite is the most effective way to align with the current market standards and minimise long term contractual risk.

    Case Law Update:  On the judicial front, the industry is closely waiting on the Supreme Court’s ruling in Triathlon Homes V Stratford Village Development. This landmark case centred around Remediation Contribution Orders (RCOs) under the Building Safety Act. The Supreme Court has allowed an appeal to determine whether the Court of Appeal took the wrong approach to applying the “just and equitable” to make An RCO and crucially, whether the Court of Appeal was wrong to decide that these orders can be made in respect of costs incurred before the relevant parts of the Act came into force in June 2022. You can read more about the Triathlon’s case and the decision of the Court of Appeal here.

    Another interesting landmark decision is the recent Supreme Court ruling in the case of Providence Building Services Ltd v. Hexagon Housing Association [2026] UKSC 1. The decision was published on the 15 January 2026 and in an unanimous ruling, the court found in favour of the employer, determining that a contractor cannot terminate for a “repeated default” because the employer had cured the initial default within the 28 day window and as such the right to terminate never actually accrued.

    In that case, the contractor served a termination notice under clause 8.9.4 of the JCT Design and Build 2016 for late payment without the prior right to terminate under clause 8.9.3. Because the employer had cured the default within the required time period, the employer challenged the notice, arguing that no valid ground for termination existed because the right had not “accrued” to the contractor.

    Reversing the decision of the Court of Appeal, the Supreme Court upheld the argument of the employer and clarified that clause 8.9.4 is “parasitic” and cannot be read independently of clause 8.9.3.

    In conclusion, these updates underscore the importance of staying informed as the construction industry is currently navigating a tidal wave of regulatory and case law changes. This is the most efficient way adapt to this shifting landscape and ensure your projects remain compliant, safe and commercially viable.

    Found any of the points in this article interesting? Our dedicated construction team can offer further guidance and provide tailored advice on the Building Safety Act, including any compliance requirements. Please contact us.

    Esther Michael-John
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    This reflects the law and market position at the date of publication and is written as a general guide. It does not contain definitive legal advice, which should be sought in relation to a specific matter.

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