Introduction
According to the Glenigan Index of Construction Starts October 2026, up until the end of September 2026 (Q3) the value of underlying work starting on construction sites across the UK was down by 2% when compared with the previous quarter and down by 18% year-on-year. Residential construction starts fell by 8% comparing Q3 with Q2 in 2026 and were down by 33% year-on-year. The situation in commercial construction starts saw a 15% quarter on quarter decline and a 16% year-on-year decline. The only positive area of growth was civic infrastructure projects which saw a 101% increase in Q3 versus the previous quarter and was up by 43% year-on-year.
The main reasons for a decline in activity across the residential and commercial construction sectors has been cited as tough market conditions, high borrowing costs and industry caution under a new Prime Minister with businesses looking to see what sort of support or relief they might get given in the Autumn Budget.
Drilling down into sub-sections of the commercial sector, office construction was down 13% quarter-on-quarter and 15% year-on-year. The hotel and leisure sector saw a fall of 20% in Q3 vs Q2 and down by 25% compared with the same period in 2025 and retail saw a concerning 23% quarter-on-quarter drop and was down by 26% year-on-year.
Businesses, property developers and landlords looking to build, improve and renovate commercial and housing properties can seek grants and loans from local authorities to help with eligible costs. Council funding priorities permit funds being allocated first for improving empty homes so they can be brought back into use, home improvement activity to improve living standards for existing tenants and conversion grants to change unused commercial premises into new housing dwellings or renovate and improve for change into other commercial uses.
What Are Some Of The Latest UK Property Development Grants Funding Opportunities Available?
i) Property Development Fund
Swansea Council and the Welsh Government are providing funding via the UK Local Growth Fund and Pride in Place Impact Fund to support the creation and/or upgrading of commercial floorspace at strategic employment sites in Swansea. Funding up to £500,000 is available.
Application Deadline: Applications are invited on an ongoing basis
ii) Conversion Grant
Cheshire West and Chester Council is running a scheme providing grants to property owners for conversion projects on empty homes and premises to provide new units of private rented residential accommodation. Funding up to £75,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iii) Town Centre Vibrancy Fund
Carmarthenshire County Council is running a scheme that will fund works to bring ground floor vacant properties back into commercial use. This can include works to the interior, exterior and curtilage of commercial buildings. Funding up to £50,000 is available.
Application Deadline: Applications are invited on an ongoing basis
iv) Empty Properties Funding
Dumfries and Galloway Council is providing a scheme for private landlords to access funding towards the cost of works required to bring their empty properties back into use. Funding up to £20,000 is available.
Application Deadline: Applications are invited on an ongoing basis
v) Repair to Lease Grant
Harrow Council is running a scheme providing grants for landlords to help them repair their residential properties and lease them to tenants. Eligible costs include renewing a defective kitchen or bathroom, repairing a hot water system, rewiring, damp proofing, fixing damaged roofs, repairing windows and doors. Funding up to £10,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vi) Minimum Energy Efficiency Standards Support Grant
London Borough of Camden is running a scheme providing funding to landlords towards the cost of improving the energy efficiency of properties to band C where the property has an existing energy performance certificate rating of band D to G. Funding up to £10,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vii) Conversion Grant
Brent Council is running a scheme providing grants for the owners of empty residential properties to repair and refurbish their properties, or converting commercial premises into homes. Funding up to £6,500 is available.
Application Deadline: Applications are invited on an ongoing basis
viii) Warmth and Security Grant
Hackney Council is providing grants for landlords and owner-occupiers to improve the security and energy efficiency of their homes. Eligible works include loft insulation, pipe and tank lagging, draught-proofing, boiler replacement, fitting thermostatic radiator valves, fitting window and door locks and bolts, door chains and viewers and security lighting. Funding up to £6,000 is available.
Application Deadline: Applications are invited on an ongoing basis
How To Apply For Property Development Funding Schemes
Full details about how to apply for schemes and the eligibility criteria is available on each individual scheme page on the relevant website. Any deadlines, who can apply and what eligible costs the grants will cover will also be outlined on these pages. Interested individuals and businesses can speak to advisors based at each provider who can guide them through requirements and eligibility criteria to see if the relevant funding is a match with their needs and help them to apply. There are also application forms and other supporting guidance available on scheme pages as well.