How infrastructure growth, procurement pressures and changing workforce expectations are reshaping accommodation decisions
The first half of 2026 strengthened the case for treating workforce accommodation as a planned procurement category rather than an ad hoc travel expense.
Across construction, infrastructure, healthcare and corporate sectors, organisations are facing a more complex accommodation challenge: supporting employees and contractors who are increasingly required to work away from home for extended periods.
Infrastructure investment, public-sector cost controls, firm hotel pricing, expanding extended-stay supply and greater attention to duty of care are changing how organisations approach workforce housing.
These five trends are likely to shape workforce accommodation decisions throughout the second half of 2026 and beyond.
Research note: Data is correct as at July 2026. UK-wide evidence is used where available. NHS workforce and hotel performance figures referenced in this report relate primarily to England, while some serviced apartment market data covers the wider European market.
1. Infrastructure-led demand remains structurally strong
The UK’s infrastructure pipeline continues to create sustained demand for contractor accommodation across transport, energy, housing and major construction programmes.
The March 2026 UK Infrastructure Pipeline identified 734 projects and programmes with a combined value of approximately £718 billion, representing one of the largest long-term investment pipelines in recent years.
Over the next five years, the pipeline is expected to require between 629,000 and 706,000 workers annually, highlighting the scale of workforce mobility required to deliver these projects.
The nature of these projects creates a specific accommodation challenge. Major programmes often require skilled workers to relocate temporarily to areas where local housing supply cannot support demand. These deployments can last months or years rather than weeks, making traditional short-stay accommodation solutions less suitable.
Construction industry forecasts reflect this continued infrastructure demand. While overall UK construction output is expected to remain mixed in the short term, infrastructure output is forecast to grow steadily through the remainder of the decade.
For organisations managing mobile workforces, accommodation is increasingly becoming part of project planning rather than a last-minute operational requirement.
Companies with established accommodation partnerships are better positioned to manage availability, consistency and cost control compared with those relying on project-by-project bookings.
What this means for organisations:
Workforce accommodation should be considered alongside labour planning, procurement strategy and project mobilisation timelines.
2. Health-sector demand remains material, but procurement controls are tightening
Healthcare remains one of the most complex sectors for workforce accommodation due to regional staffing pressures, clinical rotations and the need to support temporary placements.
The NHS continues to operate with a significant workforce. As of late 2025, NHS hospitals and community health services in England accounted for approximately 1.38 million full-time equivalent posts.
At the same time, NHS organisations are under increasing financial pressure to control temporary staffing costs. Agency spending has reduced significantly, falling from approximately £3.46 billion in 2022/23 to £2.07 billion in 2024/25, as organisations focus on reducing reliance on higher-cost agency workers.
This does not remove the accommodation requirement. Instead, it changes the procurement focus.
Healthcare organisations increasingly require accommodation that balances:
- predictable costs,
- short-notice availability,
- proximity to workplaces,
- suitability for shift-based living,
- and consistency over longer placements.
Traditional hotel accommodation can support short stays, but extended healthcare placements often require facilities that provide greater independence, including cooking facilities, laundry access and a more residential environment.
What this means for organisations:
Healthcare accommodation strategies need to focus on value, flexibility and suitability rather than simply securing the lowest nightly rate.
3. Firm hotel pricing is strengthening the case for long-stay alternatives
Hotel demand remains strong across the UK, creating continued pressure on accommodation budgets for organisations requiring longer placements.
In England, hotel performance remained robust in 2026. May figures showed:
- 80% occupancy
- £163 average daily rate (ADR)
- £131 revenue per available room (RevPAR)
For organisations booking accommodation for employees or contractors over several weeks, the financial comparison is increasingly moving beyond the headline nightly rate.
The more relevant question is the total cost of supporting a person away from home.
Extended-stay accommodation models can provide additional value through:
reduced dependence on daily hotel services,
kitchen facilities that support lower living costs,
more consistent rates for longer bookings,
improved suitability for repeat workforce deployments.
Serviced accommodation is not automatically the lowest-cost option in every scenario, but for longer assignments it can provide greater control, predictability and operational efficiency.
What this means for organisations:
Accommodation decisions should increasingly evaluate total deployment cost rather than comparing individual nightly rates.
4. Extended stay is becoming a mainstream procurement category
The traditional accommodation categories of “business trip” and “permanent relocation” no longer capture the needs of many modern mobile workers.
Professionals working away from home for periods of several weeks or months represent a growing accommodation segment across construction, healthcare, engineering and corporate sectors.
This group requires something different from both hotels and traditional residential rentals:
- flexibility without long leases,
- home-like facilities,
- reliable operational support,
- and accommodation designed around working away from home.
The serviced apartment sector continues to expand in response to this demand. Across Europe, approximately 19,800 serviced apartment rooms are expected to enter the market over the next five years, with the UK representing around 22% of this pipeline.
Major infrastructure projects demonstrate the scale of this requirement. Sizewell C, for example, has planned accommodation provision around a peak workforce of approximately 7,900 people, including a dedicated worker accommodation campus.
Extended-stay accommodation is increasingly being recognised as a specialist procurement category rather than an alternative to hotels.
What this means for organisations:
Businesses that regularly deploy employees or contractors should develop accommodation strategies designed specifically for extended assignments.
5. Quality, safety and duty of care are moving into the accommodation brief
Accommodation for mobile workers is increasingly being viewed as part of workforce support, retention and operational performance.
Employers are placing greater focus on whether accommodation enables workers to rest properly, maintain routines and feel supported during extended periods away from home.
This is particularly relevant in sectors where employees may spend weeks or months deployed away from their usual location.
A 2026 Global Business Travel Association survey found that travel buyers and suppliers continued to identify employee safety and duty-of-care considerations as significant priorities, with organisations reviewing how they support travelling and mobile employees.
The accommodation requirement is therefore expanding beyond simply providing a bed for the night.
Factors increasingly considered include:
- property standards,
- security,
- reliability,
- location,
- support availability,
- and overall living experience.
Major infrastructure projects have also highlighted the importance of accommodation planning. The Hinkley Point C accommodation strategy, for example, was developed around an estimated peak workforce of approximately 5,600 workers, recognising that workforce housing was an important part of project delivery.
What this means for organisations:
Accommodation quality is becoming part of workforce management, not just a logistical requirement.
Conclusion: Workforce accommodation is becoming a strategic decision
The direction of travel is clear: workforce accommodation is moving away from reactive booking and towards planned, strategic management.
The organisations best positioned for the next phase of workforce mobility will be those that:
- establish reliable accommodation partnerships,
- plan earlier around project requirements,
- evaluate total cost rather than headline price,
- and recognise accommodation as part of employee and contractor experience.
As infrastructure programmes expand, healthcare requirements evolve and extended working arrangements become more common, accommodation will increasingly sit alongside labour, procurement and operational planning as a critical business function.
Sources
- Infrastructure and Projects Authority / UK Government – National Infrastructure Pipeline 2026
- CITB – Construction Skills Network Forecast 2026–2030
- NHS England – Workforce and Temporary Staffing Data
- UK Parliament House of Commons Library – NHS Staffing and Agency Spend Research Briefing
- VisitBritain – England Hotel Occupancy and Performance Data
- HVS – European Serviced Apartment Market Report 2026
- Sizewell C Accommodation Management Service
- Global Business Travel Association – 2026 Business Travel Outlook
