The Week That Was - 27 March 2026

Welcome to the week that was, a round-up of key events in the construction sector over the last seven days.

Construction Sector Welcomes Retention Ban but Warns of Loopholes

The Department for Business and Trade (DBT)has announced that it will outlaw the use of retention payments in construction contracts, meaning money now cannot be withheld as security against defects or incomplete work. 

The construction industry has welcomed the Government's intervention, suggesting it will "supercharge the supply chain" but warning of the need to ensure there are "no back-door loopholes to get around the ban".  In this regard, the DBT has acknowledged that some firms may seek to ignore the ban, but this could be remedied through adjudication.  There is also a risk that firms might attempt to circumvent the ban by adjusting payments to the supply chain, with payments moved to later in the project schedule.  However, the DBT consider this risk (which is said to be 'material') is "not likely to outweigh the potential benefits to be gained through protecting retentions from insolvency and abuse".

For more information, see here [May require subscription] and here.

Awards for Wirral Council North West Contractor Framework

Wirral Council has awarded places on a four-year North West contractor framework worth £1.2bn across 13 Lots. The framework is due to run from 1 April 2026 to 31 March 2030. 

The 11 winners of Lot 6 relating to construction projects above £30m (worth c.£220m) are BAM Construction, Bowmer and Kirkland, Galliford Try Construction, John Graham Construction, John Sisk & Son (Holdings), Kier Construction, Morgan Sindall Construction & Infrastructure, Tilbury Douglas Construction, Vinci Building, Wates Construction, and Willmott Dixon Construction.

Read more in Construction News here for further details of the winners [May require subscription].

SME Home Builders Pessimistic about Success of New Projects

The Home Builders Federation's SME Developer Sentiment Survey March 2026 has found that 70% of SME housebuilders reported that current market conditions are reducing their appetite for starting new sites. In addition, 25% of SME housebuilders reported that they expect to cut back on land purchasing. Respondents reported concerns including a lack of buyers, higher taxes, and costs constraining delivery. London-based developers are the most pessimistic.

Read the Survey here.

Renters' Rights Act Information Sheet released

The Government has released the Renters' Rights Act Information Sheet 2026 (the Information Sheet) that is to be provided by Landlords (or their Property Managers) to all tenants by 31 May 2026.

The Information Sheet provides a summary of the new rights and protections afforded to tenants from 1 May 2026 as a result of the Renters' Rights Act 2025.  This includes (amongst other things) protections in relation to rent increases, the abolition of no-fault evictions (previously known as section 21 evictions), and the right for tenants to request to keep a pet.

Failure by Landlords to provide the Information Sheet to tenants by the deadline could result in a fine of up to £7,000.

You can find the Information Sheet here and also find further details about the reforms in RPC's updates here.

BCIS Report Price Rises and Concerns about Middle East Unrest

The Building Cost Information Service (BCIS) have reported a "strong appetite to tender" among contractors and an increase in tender prices of 0.7% between Q4 of 2025 and Q1 of 2026.  This has resulted in 2.8% annual growth in the BCIS All-in Tender Price Index.

However, there are concerns that the conflict in the Middle East could affect supply chains and material costs, thereby disrupting project pipeline growth.  Although the unrest has not yet influenced tender prices, this is likely to change if the conflict continues.

It is also reported that material and labour availability is generally good, but skills shortages remain, particularly in relation to fire safety works (such as sprinkler installation and façade works).  In addition, delays are reported as a result of the Building Safety Regulator Gateway 2 approvals.

You can read BCIS' full update here.

Court of Appeal clarifies meaning of "building"

In SGL 1 Ltd v FSV Freeholders Ltd [2026] EWCA Civ 267, the Court of Appeal revisited what counts as a “building” under Part 1 of the Landlord and Tenant Act 1987( the Act) and the validity of section 5 offer notices. 

The dispute concerned four blocks at Fox Street Village, Liverpool, and whether they formed one building or several.  This was a key issue for whether the landlord had to sever the proposed disposal under section 5(3).  The High Court had held they were a single building and that the section 5 notices were invalid.

The Court of Appeal disagreed. For the purposes of Part 1 of the Act, the term "building" does not extend to multiple structures merely because they share appurtenant premises. The focus is on a functionally integrated built envelope. On the facts, Block A was a separate building; Blocks C and E formed one building; and Block B formed part of the same building as Block C and E.  The Court held that the section 5 notices were valid. 

You can read Lexis+ UK's case summary here or the full judgment here.

Seven new towns named to close homes delivery gap

Government ministers have unveiled seven proposed new towns which could deliver up to 200,000 homes. Each location is expected to deliver at least 10,000 homes, with several schemes scaling up to 40,000. The sites span London and key regional growth corridors, with a strong focus on investment on transport links alongside the new sites to help unlock development and support jobs.

To speed up delivery of the projects, the Government is reviving development corporations and are bringing funding through a new National Housing Bank launching on 1 April 2026 with up to £16bn of capacity and which is expected to unlock more than £53bn of private investment.

For more information, see here.

With thanks to Zack Gould-Wilson, Ella Green, Harry Langford-Collins, Nishtha Guha

Disclaimer: The information in this publication is for guidance purposes only and does not constitute legal advice.  We attempt to ensure that the content is current as at the date of publication, but we do not guarantee that it remains up to date.  You should seek legal or other professional advice before acting or relying on any of the content.

If you have any queries please do get in contact with a member of the team, or your usual RPC contact.