As 2026 begins, confidence around planning reform is being closely tested — particularly in the commercial property sector. While policy changes were intended to unlock development and stimulate growth, new commercial starts remain slower than expected. At Ives & Co, our commercial conveyancing team is seeing how planning uncertainty continues to affect investment decisions, transaction structures, and development timelines.
Why Planning Reform Hasn’t Accelerated Commercial Starts
Although planning reform aimed to streamline approvals, several practical barriers continue to limit progress across commercial schemes.
➜ Developers remain cautious amid higher construction and financing costs
➜ Local authority backlogs continue to slow commercial planning decisions
➜ Infrastructure and Section 106 obligations delay project viability
➜ Mixed-use and regeneration schemes face added complexity
In many cases, planning consent alone is not enough to trigger immediate development.
What This Means for Commercial Property Supply in 2026
With fewer new commercial developments entering the pipeline, supply constraints are becoming more noticeable across certain sectors.
✔ Limited availability of new industrial and logistics space
✔ Slower rollout of retail and mixed-use regeneration projects
✔ Increased competition for well-located commercial premises
This imbalance is influencing both pricing and lease negotiations in key markets.
Impact on Commercial Buyers and Investors
For buyers and investors, slower development is shaping acquisition strategies and risk assessment.
➜ Greater focus on existing assets rather than new-build opportunities
➜ Increased due diligence around planning status and future use
➜ More cautious lending tied to development timelines
➜ Stronger emphasis on flexibility in permitted use
Investors are placing greater value on certainty and long-term planning clarity.
Impact on Landlords and Developers
Landlords and developers are navigating a more selective and cost-conscious market in 2026.
✔ Phased development is becoming more common
✔ Pre-let agreements are playing a larger role in funding decisions
✔ Sustainability and ESG considerations are influencing planning outcomes
Where projects do proceed, preparation and documentation are critical to keeping transactions on track.
Key Commercial Planning Issues to Watch in 2026
As the year progresses, several factors will determine whether planning reform delivers meaningful results for the commercial sector. These include the speed and consistency of local authority decision-making, the availability of development finance, the level of government support for regeneration and brownfield sites, and any further amendments to planning and infrastructure policy. Together, these factors will play a direct role in shaping transaction timelines and overall deal certainty.
Final Thoughts for Commercial Property in 2026
While planning reform remains a central policy focus, doubts persist over its ability to quickly stimulate new commercial development. For now, constrained supply and planning uncertainty continue to shape the commercial conveyancing landscape. Businesses and investors who understand these pressures are better placed to navigate negotiations, manage risk, and plan strategically as 2026 unfolds.
