The construction industry is set for further change following the announcement of key legislation during the King’s Speech, including the Remediation Bill and the Energy Independence Bill
Delivered today in Parliament, the King’s Speech 2026, presented by King Charles, confirmed several bills with significant implications for the construction sector. However, there has also been some disappointment over notable proposals that were not included in the speech.
Key announcements that will affect the industry
Most of the measures announced in the speech have been widely discussed in recent days, leaving few surprises for the construction industry.
The Steel Industry (Nationalisation) Bill was discussed as the move to fully nationalise British Steel was confirmed after first being brought up just days ago.
The Small Business Protections (Late Payments) Bill was also confirmed, bringing stricter penalties to companies that don’t pay their suppliers on time.
The Remediation Bill will require construction product manufacturers to fund the removal of unsafe building cladding they were responsible for supplying or installing.
The Energy Independence Bill will lay out new efficiency requirements for rented homes as well as establish new powers for ministers to target support for energy bills to those who most need it.
The Nuclear Regulation Bill will speed up approval for new nuclear energy projects.
Industry reactions
While reactions have been broadly positive, there is little sense that the speech contained anything truly ground-breaking, but rather a cautious optimism and relief that some positive progress has been made during a challenging period for the industry.
Dr Victoria Hills, CEO of the Chartered Institute of Building (CIOB), said: “The Government’s commitment to accelerating the removal of unsafe cladding must mark a new turning point for thousands of residents who have spent far too long living in unsafe homes. It is unacceptable that, almost a decade after the Grenfell Tower tragedy, people are still facing the emotional and financial burden of a crisis completely out of their control.
“Introducing fixed timeframes for remediation on high-risk buildings is an important step towards ensuring no residents living in cladded buildings continue to live with uncertainty about the safety of their home. CIOB’s Quality Implementation Group will continue contributing the expertise of our members as these reforms progress.
“While a Construction Regulator Bill was not mentioned in the King’s Speech, we expect to see proposals come forward as part of the Government’s wider legislative programme following the Grenfell Tower Inquiry. CIOB has long called for clearer accountability and a stronger regulatory framework for both construction and building safety. We supported the introduction of a formal construction regulator in our response to the Grenfell Phase 2 Inquiry, and we look forward to working with Government and industry to help deliver meaningful culture change across the sector.
“Finally, it is encouraging to see continued action on late payments, which continue to put huge pressure on SMEs across construction. Figures show the industry has experienced the highest number of insolvencies in any 12-month period. CIOB was pleased to contribute to the Government’s 2025 consultation on late payment practices, and we look forward to engaging further as the legislation progresses through Parliament.”
Chief executive of the Chartered Institute of Housing (CIH), Gavin Smart, said: “We welcome the government’s ambitious legislative programme set out in today’s King’s Speech, with important measures across social housing, leasehold reform and building safety. Commitments on Right to Buy reform, stronger tenancy protections for domestic abuse survivors, capping ground rents, making commonhold a viable alternative, and speeding up the remediation of unsafe cladding all signal a clear intent to improve residents’ security, safety and control over their homes. We look forward to seeing the detail and working with government and partners to ensure these reforms deliver meaningful, practical and lasting improvements for current and future residents.”
Jaclyn Mangaroo, chief communications officer at The Property Institute (TPI), on the Remediation Bill: “The slow pace of fixing unsafe buildings, nearly nine years after the Grenfell Tower fire, has clearly shown the need for legislation. The Remediation Bill is to be welcomed as far as it goes, particularly for residents who have been living with dangerous cladding for years. However, the proposed Bill falls short on two crucial issues: implementing a backstop for pledged developers and addressing internal safety defects.
“First, the backstop for inaction applies to landlords, but not to developers – who pledged to fix their buildings more than three years ago but have still only completed 10% of the necessary remediation work, our data shows. This is counterintuitive when developers were responsible for the construction of their buildings and are taking the longest to fix them. We have found that nearly 60% of developer-pledged projects have not yet even agreed the scope of works.
“Second, the government is justified in focusing on removing unsafe external cladding and facades, but the Bill fails to address internal safety defects such as inadequate compartmentation, and non-compliant fire doors. This means residents will continue living in potentially unsafe buildings, which has a significant knock-on consequence of paying unjust costs to fund interim safety measures, and higher insurance premiums.
“Our members, who collectively manage over two million homes in England and Wales, are still facing too many barriers and challenges in ensuring residents are protected from risk and from further costs of safety remediation work. The government must understand and legislate for the fact that that the building safety crisis goes beyond cladding, and that residents should not be left in limbo.”
Kierra Box, water campaigner at Friends of the Earth, said: “Legislation that finally puts people and nature above profits is well-overdue – let’s hope this Water Reform Bill goes much further than the last.
“It’s a national scandal that things have been allowed to get this bad, with our rivers and seas so filthy that people are risking their health to enjoy the country’s bathing waters, and our aquatic wildlife is fighting to survive.
“As well as targeting every kind of water pollution – not just sewage – it’s vital this bill completely overhauls our water system to put power back in the hands of communities and genuinely restores our rivers and seas to full health.
“A year ago, independent advisors outlined steps the government must take to revive our crumbling water system – it’s high time ministers got on with the job.”
Melanie Leech CBE, interim chief executive at Real Estate:UK, said: “The real estate industry is facing numerous significant headwinds, and construction is at a standstill across most of the country because it is not viable to build. In these circumstances, whilst the UK remains a preferred destination for both domestic and global capital, investors are unwilling to commit new funds without greater economic and political stability including clear signals from the Government that they will take the necessary steps to bridge the viability gap, reduce the costs of development and deliver on the promise that the UK will ‘build, build, build’. Sadly, a combination of last week’s local election results changing the landscape and bringing uncertainty in many areas, and the ongoing speculation about leadership, means that the reverse is true.
While there are welcome measures in today’s King’s Speech, particularly the intent to speed up grid connections, the Government has not set out the bold vision for economic and social renewal that is needed and that will unlock investment. Indeed, investors may be further discouraged by the focus on measures such as leasehold reform and retentions within the construction sector.”
Anna Clarke, director of policy and public affairs, The Housing Forum, said: “The Housing Forum is acutely aware of the vital role that council homes can play in meeting housing needs. Our local authority members are passionate about building new council homes but many areas continue to see more homes sold than can be replaced. Reforming the Right to Buy – including increasing eligibility periods, and reducing the discounts – will help slow the loss of much-needed social rented homes.
“We are particularly pleased to see the protections for newbuild housing being taken forward. This will help give councils the confidence to build new homes knowing that they will remain as social housing for the long term.
“We are also pleased that the Government is taking the opportunity to formally remove fixed term tenancies, income-based rents and the forced sales of higher value homes from the statute books. This will reduce uncertainty and also help social landlords to build with confidence, while ensuring that tenants can feel secure in their homes.”
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