UK Infrastructure Seen as Top Investment Destination, But Viability Remains Key Barrier
- Safer Highways
- 9 hours ago
- 2 min read
New research indicates that the UK continues to be a highly attractive market for infrastructure investment, with 90% of institutional investors viewing the country as a compelling destination over the next three years.
However, the survey also highlights caution, as two-thirds of respondents admitted they had pulled out of projects where the business case was not strong enough.
Commissioned by AtkinsRéalis, the study paints a largely positive picture for transport infrastructure. All rail and road investors surveyed (100%) expressed confidence in the UK as an attractive market over the next decade, while 93% remain interested in the shorter three-year horizon. Nearly half of all respondents (46%) reported that they are already investing or planning to invest in UK road and rail projects.
The report also reveals a notable appetite for early-stage involvement: more than half of investors enter projects during development or construction phases, offering opportunities for partnerships and innovative approaches. Of these early entrants, 31% are willing to take the lead as first movers, while 46% take a more cautious approach, suggesting a measured but significant willingness to explore alternative delivery and funding models.
Outside the transport sector, the picture is more mixed. While 65% of investors remain committed to UK infrastructure in general, only 19% prioritise it strongly over other global markets, and 64% have walked away from projects due to weak business cases.
Chris Ball, President of AtkinsRéalis UK & Ireland, said: “The research shows the UK has a real opportunity to attract private capital and deliver the infrastructure needed for economic growth and societal benefit. To convert investor sentiment into action, we must focus on de-risking projects, early collaboration, credible delivery plans, and stronger contract frameworks.”
Other key insights from the survey include:
Risk perception: 71% of investors rate UK infrastructure as low-to-medium risk, but many call for improved risk management, viable business cases, and government-backed incentives.
Innovative funding appetite: 37% are interested in public-private partnerships, and 30% are open to piloting innovative financing approaches.
Regional focus: 79% express interest in regional infrastructure programmes but stress the need for clear pipelines, aligned priorities, and sufficient delivery capacity.
Based on these findings, AtkinsRéalis has recommended a three-pronged approach for government and industry:
De-risk: Encourage integrated planning and collaboration between public, private, and financial partners, underpinned by robust contracts.
Incentivise: Introduce funding models that share risk, align incentives, and are supported by credible delivery plans.
Deliver: Prioritise collaborative contracting and clear project outcomes to provide reliable investor returns and tangible benefits for communities.
The survey, conducted in October 2025, involved more than 100 interviews with senior decision-makers at institutional investors, including pension funds, banks, life assurance providers, and private equity firms with exposure to UK infrastructure and real estate.