Confidence is returning to the UK real estate and infrastructure industry, according to the 2025 UKREiiF Real Estate Market Sentiment Survey. Based on 10,874 responses from professionals who attended UKREiiF 2025 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, when respondents were asked what their main challenges were, the top five highlight the impact that pressures both in the UK and overseas are having on the industry, and the issues that need to be overcome:
- Geopolitical instability (48%)
- Inflation and rising costs (41%)
- The UK planning system (35%)
- The UK political landscape (33%)
- Cost and availability of finance (30%)
Half of property developers cited planning as one of their top three concerns, a sentiment 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 to drive activity. 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 response to the findings, industry influencers share their reactions.
Melanie Leech CBE, Chief Executive, British Property Federation: “Whilst headwinds remain, and some of the welcome policy decisions that the Government has taken to support the delivery of homes, workspaces and communities will take some time to feed through, it’s clear that the UK remains an attractive destination offering a wide range of opportunities across the country for global and domestic capital. This is reflected in the report produced by Holistic Insight for UKREiiF and the number of people who converged at the event.”
Dr Victoria Hills, Chief Executive of the Royal Town Planning Institute: “It’s encouraging to see such a strong uplift in industry confidence. This growing positivity reflects a sector that is ready to move forward, but it also underscores the importance of addressing the challenges we are all still facing. It’s no surprise that the UK planning system features prominently in these findings. We are acutely aware of the pressure points and remain steadfast in our work to ensure that the Planning and Infrastructure Bill delivers on its potential. This is a once-in-a-decade opportunity to secure meaningful, long-lasting reform, one that cannot afford to miss.”
As reflected by industry reactions, Nathan Spencer, Managing Director of UKREiiF, added: “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.”
Nicola Hanser, Director of Holistic Insight, added: “What’s particularly powerful about this survey is that it captures sentiment from across the full breadth of the sector. It shows not only where confidence is growing, but what’s driving it – and where challenges remain. Through the survey, we now have clear insight into the areas that need attention such as planning reform, policy clarity, access to finance, ESG delivery and long-term talent development. It’s a great resource for the property industry as it navigates an uncertain market and plans ahead.”