Here’s three trends we think will be present across the sector this year - 

Universities increase divestment

Over the last 24 to 36 months, many university estate directors have been busy undertaking data driven reviews of their estates to better understand how assets are utilised and to set short, medium and long-term priorities for the future of their buildings and campuses. In many cases, this has accompanied a strategic refresh of institutions that will drive the direction of travel for the years ahead. Now, with an improved understanding of an estate’s ‘moving parts’, fully-informed solutions can be implemented to address inefficiencies in both the operation and use of spaces across campuses, and pressure is on to make bolder moves and expedient decision making. We expect more divestment activity in the HE sector this year, as well as merger activity, greater but more diverse international emphasis, and increased specialisation.

More industry collaboration

It has long been lamented that the UK education sector doesn’t make enough of commercialising its world-leading research capabilities and intellectual property via industry partnerships. We anticipate, however, that supported by the current Government’s Growth Agenda, in 2026 we will see more institutions forming new substantial partnerships with industry and business organisations to help push forward and grow university-led research & development (R&D ecosystems). Such partnerships will require their own types of real estate to support their growth, from incubator hubs to affordable lab and flexible offices that can quickly be expanded or adapted in response to rapid growth or change.

More emphasis, but limited funding, for further education

The FE sector, while integral to the UK’s employment skills and growth agenda, continues to largely be overlooked in mainstream education sector coverage, although it’s subject to similar estate challenges and pressures as HE, with funding often resulting in a more reactive approach to estate management.

The Government’s industrial strategy identified frontier industries which require accessible education and skills training to support their long term growth. This includes a commitment to deliver or fund Technical Centres of Excellence (TECs) across existing FE institutions that meet the geographic requirements of these industries. Ten construction industry TECs were committed to in August 2025 and a second wave for applications was launched in December 2025 for 19 more centres across alternate growth industries.

The Government published a new Post-16 Education and Skills Strategy in October 2025, setting out plans on how to educate and train the workforce of the future, much of which will need to be delivered via FE given the focus on vocational and technical training. There’s continued emphasis on specialisation, collaboration with businesses and engagement with local governance. Yet, while funding is allocated to the TECs, the growing demands on FE lack wider funding commitments to service it.There’s therefore likely to be a greater integration of accessible education and training into the economic ecosystems of our towns, cities and regions through, for example, more closely partnered training delivery between FE institutions and major employers to disperse the pressures on already constrained FE estates.

Further information

Contact Olivia Haslam and Sadie Janes

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