The first week of January 2026 marks a noticeable transition in London’s construction market. After a prolonged period dominated by regulatory reform, consultations and delayed decision-making, the capital is now moving decisively into a delivery-led phase, particularly across high-rise commercial schemes and complex transport infrastructure.
What is emerging is not a sudden boom, but a compression of risk: multiple large projects entering procurement or early works at the same time, against a backdrop of constrained labour, unresolved housing delivery issues and major infrastructure dependencies.
Major Project Starts and Live Tenders (Week Commencing 5 January 2026)
Several significant schemes are either entering procurement or approaching physical start on site:
King’s Cross – LNER First Class Lounge Refurbishment
A major refurbishment of the LNER First Class Lounge at King’s Cross Station is scheduled to begin on 26 January 2026, with the facility closed until spring. While modest in value compared to wider station upgrades, the works are operationally sensitive, requiring careful phasing within one of London’s busiest transport hubs.
Mayfair Redevelopment – Crown Estate
The Crown Estate has launched a main contractor procurement for the redevelopment of 56–64 Conduit Street and 11 New Burlington Place. The design-and-build scheme enters eligibility assessment phase with a 16 January 2026 deadline, followed by the first competitive stage on 26 January. This is a clear signal that West End commercial investment is re-activating after a cautious 2024–25 period.
Bromley Town Centre – 1 Westmoreland Road
Major demolition is expected to commence during 2026 for the 19-storey build-to-rent tower approved in late 2025. The scheme remains controversial locally, but its progression underlines a broader trend: outer-London town centres absorbing higher-density residential delivery as central London housing output stalls.
High-Value Construction Pipelines to Watch in 2026
Data from Barbour ABI highlights several £400m–£500m+ schemes expected to define contractor workload and supply-chain pressure over the next 12–24 months:
ITV Studios, Upper Ground (£500m)
A large-scale redevelopment of 60–72 Upper Ground, Lambeth, combining commercial, production and creative space. Delivery complexity is driven by tight urban logistics and sequencing alongside active media operations.
60 Gracechurch Street (£500m)
A major City of London commercial tower, reinforcing the Square Mile’s continued focus on high-spec, ESG-driven office stock despite structural shifts in working patterns.
Grafton Street & New Bond Street – Phase 3 (£440m)
The next phase of this major hotel and retail redevelopment continues the West End’s pivot toward experience-led mixed-use schemes rather than traditional retail-only models.
140 Bastion House (£437m)
Another large City office development, signalling that investor appetite for premium commercial assets remains intact, but delivery risk is increasingly concentrated around cost certainty and programme control.
Transport and Infrastructure: 2026 as a Critical Enabling Year
Infrastructure remains the enabler and potential constraint for London’s wider development ambitions.
Oxford Street Pedestrianisation
A public consultation on pedestrianising Oxford Street between Orchard Street and Great Portland Street runs until 16 January 2026. While construction is not expected to begin until the second half of the year, 2026 will determine whether delivery is politically and operationally viable.
Piccadilly Line Upgrade (£2.9bn)
The first of 94 new walk-through Piccadilly Line trains is scheduled to enter service between July and December 2026. This milestone will begin unlocking capacity improvements critical to west and north London development corridors.
District Line – Four Lines Modernisation (4LM)
Completion of the final District Line signalling sections is expected during 2026, closing one of TfL’s most complex and disruption-heavy upgrade programmes.
DLR Thamesmead Extension
TfL plans to apply for statutory powers in 2026, targeting a 2027 construction start. While still pre-delivery, this scheme is strategically significant for east and south-east London housing capacity.
Strategic Context: Planning Reform Meets a Housing Delivery Gap
Two strategic realities frame all of the above activity:
London Plan Review
Consultation on the Sustainability Appraisal (IIA) for the new London Plan is open until 30 January 2026, with the full draft expected in summer. However, most major schemes progressing now are being delivered under the existing planning framework, limiting the immediate impact of policy reform on site activity.
Housing Supply Cliff
New data indicates that fewer than 5,000 private homes started construction in late 2025. Despite 281,000 homes holding unbuilt planning permission, analysts are warning of a post-2027 supply shortfall unless build-out rates materially improve. The risk is not planning consent, it is delivery capacity, finance and viability.
What This Means for London Construction in 2026
January 2026 does not mark a recovery surge, it marks a transition point. Contractors, consultants and suppliers are entering a period where:
- High-value commercial projects move simultaneously into delivery
- Transport upgrades reach operational milestones
- Housing delivery remains structurally constrained
- Programme risk becomes more concentrated than dispersed
For London’s construction sector, 2026 will be less about announcements and more about execution under pressure.
Image © London Construction Magazine Limited
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Expert Verification & Authorship: Mihai Chelmus
Founder, London Construction Magazine | Construction Testing & Investigation Specialist |
