Office approvals point to construction rebound

The £340 million 1 Silk Street development at Barbican is among major office schemes in the UK pipeline (Image: SOM).

UK office construction could see stronger activity over the coming year after the value of underlying schemes securing detailed planning approval more than doubled in the second quarter, according to Glenigan.

The construction intelligence company says underlying office approvals rose 107% year-on-year during April–June 2026, despite project starts and contract awards remaining below the level recorded a year earlier.

Glenigan has identified more than 1,200 approved office schemes expected to start on site during the next 12 months, with London and the South East accounting for the largest concentrations of projects.

London has 275 schemes due to start over the coming year, while the South East has 161. Glenigan says demand remains focused on Grade-A office space, refurbishment and energy-efficient workplaces in major urban centres.

Allan Wilén, economics director at Glenigan, said: “Although project starts and contract awards fell compared with the previous year, detailed planning approvals more than doubled, signalling a substantial increase in proposed future development activity.”

He added that continuing demand for higher-quality office space was supporting the pipeline despite wider market uncertainty.

The increase in approvals should be treated as a forward indicator rather than evidence of an immediate rise in construction output. Schemes with planning consent can still be delayed, redesigned or cancelled before work begins.

Among the larger projects in the pipeline is the £340 million 1 Silk Street development at Barbican in central London, which Glenigan expects to start in 2029. A separate £70 million retrofit of a former Lloyds Bank building in Bristol is also among schemes securing approval.

For projects valued above £100 million, Glenigan separately recorded office planning approvals worth £3.83 billion during the three months to June, up 149% compared with the same period a year earlier. That figure covers major projects rather than the full underlying office market.

The regional pipeline extends beyond London and the South East. Glenigan has reported particularly sharp year-on-year increases in office approvals in the East of England, East Midlands and Yorkshire & the Humber, although these percentage movements come from smaller regional bases than London.

Glenigan is forecasting a 21% increase in underlying office starts during 2026, based on construction value rather than simply project count. Its latest forecast expects geopolitical disruption to restrain activity next year before growth resumes in 2028.

Major projects already moving through procurement include Landsec’s £282 million 55 Old Broad Street development in the City of London, awarded to Skanska, and the £165 million second phase of Timber Square, also in London.