Planning reform, Net Zero, and a new political era | Q&A with Edge’s Nick Phelan

With planning policy, sustainability targets, and regional investment all in flux, Place Yorkshire spoke to the consultancy’s founding director about why political uncertainty and the potential rise of Reform is forcing the built-environment sector to rethink how it plans, delivers, and grows.

As the South Yorkshire-based firm enters its 10th year as a business, we asked Phelan to reflect on the major shifts in the UK construction landscape and what he believes lies ahead.

Q. Looking back over the past decade, what would you say is the single biggest shift in the UK property and construction landscape?

A. The past decade has been very unpredictable. Covid, political changes and new policies has kept the market on its toes. When the pandemic hit, aviation was one of our biggest sectors, but overnight that work disappeared. We had to adapt quickly, pivoting into sectors like healthcare and retail. That agility paid off and we came out of Covid twice the size we were going in.

On the delivery front, sustainability and ESG is arguably the biggest shift. Net-zero targets have transformed how projects are designed and delivered. Integrating renewable energy systems and low-carbon materials has added both complexity and cost. Clients now expect more demonstratable social value impact too, with projects required to support local jobs and add long-term community benefits. At EDGE, we’ve seen frameworks increasingly mandate ESG compliance.

Q. Which market or sector trends have surprised you most since 2016, and how have they reshaped client expectations or delivery models?

A. Build-to-Rent and co-living have grown faster than anyone expected. Retail has been turned on its head, with Covid further accelerating the shift to online – while the high street struggled, online shopping, DIY and food retail went through the roof.

Logistics and industrial demand has surged too, and public sector investment in infrastructure and regeneration has been stronger than predicted, even with tight local budgets. The sector has been more reliant on public sector frameworks than many would have predicted in 2016.

Our clients now want added flexibility but also cost certainty and data-backed decisions. Today, fewer businesses focus exclusively on one or two sectors. Economic pressures have driven consultancies like ours to diversify, building expertise across multiple disciplines and balancing work between public and private markets.

Q. With the political landscape shifting, how do you see a potential transition from a Labour government to a Reform-led one impacting the property and construction sector – particularly in areas such as planning policy, infrastructure investment, and regional development?

A. Labour is trying to drive affordable housing, green infrastructure and planning refinement – tackling long-term challenges like climate resilience. A Reform-led government, on the other hand, would likely push for more deregulation, cutting through planning constraints and chasing quicker wins for the private sector.

Any big political shift brings uncertainty, especially with the Greens gaining ground too. That means regional funding could be unpredictable in the short term. For us, and for the sector, it’s all about scenario planning and staying adaptable – both for our clients and our own pipeline.

Q. Over the last 10 years, what technological advancements have had the most meaningful impact on project delivery?

A. Tech has transformed how we work. Building Information Modelling has now become industry standard for efficiency, consistency and risk reduction. Cloud-based platforms have made projects more transparent and accurate, and off-site construction has sped up delivery while improving quality and cutting down waste, especially in healthcare and residential.

For us, investing in digital workflows and data analytics isn’t optional – it’s part of the day job. We continually train our teams on emerging tech because staying ahead is the only way to deliver the best outcomes for our clients.

AI is already changing the game – predictive analytics for cost and risk, automated reporting, and real-time client engagement are quickly becoming part of everyday delivery. Intelligent AI-driven market and sector analysis will give us deeper insights into the construction landscape.

Q. From your vantage point, how has the relationship between developers, local authorities, and consultants evolved – and what has this meant for regional markets like the Midlands, Yorkshire and the North East?

A. It’s definitely become more collaborative. Early engagement is now key to speeding up planning and reducing risks down the line, which is vital in a sector where developers have seen profit margins tighten in recent years. Local authorities are pushing sustainability and social value harder than ever, and initiatives like Levelling Up have created real opportunities in regions like the Midlands, Yorkshire, and the North East.

Q. As you look ahead to 2026, what do you see as the biggest opportunities for organisations operating in the built-environment sector?

A. Retrofit and decarbonisation are huge opportunities, driven by net-zero targets. Infrastructure investment is growing fast, especially in transport and energy. Logistics and industrial will keep booming thanks to the growing dominance of e-commerce, and data centres are the hot topic right now because of AI and the digital economy.

Housing simply ‘needs’ to pick up beyond Build-to-Rent if the government wants to hit its 1.5m homes target. The housing sector has been challenging in recent years due in part to regulatory changes, but there are signs of green shoots on the back of recent budget announcements around affordable housing. Hopefully projects can start to get to site quicker from 2026.

We’re also seeing strong opportunities in education and healthcare, as big institutions look to decarbonise and rationalise their estates while improving user experience.

On top of that, defence and judicial are set for strong growth, driven by government investment and the need for modernisation. Combined with the UK’s wider push for resilience and security, this will create significant opportunities for those ready to adapt.

Q. What emerging challenges do you think will define the next decade – whether from regulation, talent shortages, sustainability targets, or economic volatility?

A. Talent shortages in construction are still a big issue. Upskilling and apprenticeships are moving in the right direction, but it’ll take time to see that filter through the system and deliver tangible benefits at scale. Regulations around carbon, biodiversity and building safety will keep adding complexity, and economic volatility doesn’t appear to be going anywhere – affecting everything from funding and procurement to the cost of raw building materials.

There’s a growing need for more resilient supply chains across the UK, which is no easy task given the rising business costs SMEs face and the challenges in sourcing skilled workers.

Q. If you could give one prediction about how the property market will look in another 10 years, what would it be?

A. It’s hard to predict exactly, because so much depends on the UK’s political priorities. But I’d like to think carbon-neutral developments will be the norm. Sustainability won’t be optional, it’ll be the baseline.

Alongside that, we’ll see the rise of truly smart cities, where IoT and data-driven infrastructure allow real-time monitoring of everything from energy use and traffic flows to environmental performance and footfall.

These advancements will completely change how we design, build and manage assets. Automation and digital tools will become central to construction delivery. A visible and predictable government construction pipeline will also be crucial to help the industry prepare for future growth.