TerraQuest says agility is key to property sector success as it reveals the real estate trends developers need to know in 2026

TerraQuest, the operator of Planning Portal, says an agile footing will continue to be critical to property industry success as it unveils a report distilling the key real estate trends built environment professionals need to know for 2026. 

The report brings together insights from across land, property and planning to give an overview of the state of the residential and commercial markets. Coming at a pivotal moment for the UK real estate sector as the government’s planning reforms continue to take effect, the report highlights opportunities across build-to-rent, sustainability, prop-tech and commercial markets.  

Notably, it finds that shifting regulatory, macroeconomic and social trends are driving increased interest in models beyond traditional market housing and commercial leases, including accelerated interest in build-to-rent, co-living and retail warehousing, as well as a resurgence in mixed-use developments. Planning Portal data supports this shift, showing that co-living dwellings in London increased by 77.8% compared with the same period last year, with 3,559 new co-living homes applied for across the capital so far in 2025. 

The 18 months since the general election have seen a raft of changes to planning rules, with two updates to the National Planning Policy Framework (NPPF) and the passing into law this week of the Planning and Infrastructure Act. At the same time, the imminent Future Homes Standard and stricter environmental standards are impacting what, where and how developers can build.  

Geoff Keal, CEO at TerraQuest, said: “More than ever before, agility will be key to property industry success in 2026. We’re standing at the frontier between the reform and delivery stages of the government’s mission to get the country building, with the built environment industry now grappling with the challenges and opportunities this brings. At the same time, we’re seeing the consolidation of several long-term macro trends including returns to office working and a continued shift towards co-living. 

“These rapid changes make the future less predictable and flexible approaches more important.” 

TerraQuest’s guide to UK Real Estate Trends can be downloaded here.