The housing sector confronted vital challenges in 2025. Delays to long-term grant funding created a pause in commitments to new websites scheduled for supply past March 2028, leaving many inexpensive housing suppliers unable to progress schemes and slowing planning exercise extra extensively. On the identical time, weaker open-market situations required builders to adapt their strategy.
Regardless of this, the drive to ship new houses remained robust, prompting a stage of innovation not usually seen within the sector. Partnerships between builders, registered suppliers and buyers performed a key position in maintaining schemes viable and mixed-tenure tasks on observe.
In line with Mark Leaf, chief progress officer at Strata, listed below are the important thing developments to observe in 2026:
1. Planning reform that lastly speeds issues up
A big shift will come from planning. With choices now frequently taking as much as two years, in comparison with simply 16 weeks seven years in the past, the system is overdue for reform. The present Invoice intends to chop this backlog and unencumber assets inside planning groups.
Leaf mentioned: “If delivered as meant, this can give companions larger certainty on deliverability and funding. For housing associations and native authorities, the power to hit important grant deadlines extra simply may very well be transformative. It additionally introduces the potential for longer-term prosperity planning moderately than short-term firefighting.”
2. Inexpensive housing demand will rise
Bulletins round social and inexpensive housing funding will proceed to play a defining position.
“We’re anticipating elevated demand not only for inexpensive items on open-market schemes, however for absolutely inexpensive and mixed-tenure developments,” Leaf continued. “The sector’s urge for food for such a supply is powerful, and the proper funding setting may unlock elevated momentum.”
3. Open-market uncertainty will proceed
Mortgage availability and rates of interest stay unpredictable.
Leaf commented: “We noticed how rapidly market confidence shifted in 2025, and it’s affordable to anticipate the identical volatility in 2026 except one thing radical modifications. Builders might want to keep agile, and mixed-tenure fashions shall be a stabilising drive as soon as once more.”
4. Construct-to-rent will plateau
Single-family build-to-rent has grown quickly, however Leaf expects a levelling-off.
He continued: “A number of components will drive this together with slowing rental inflation, stronger tenant protections by the Renters’ Rights Act, and better tax burdens.”
“Shopping for might turn into extra enticing than renting for a lot of households, whereas investor urge for food may soften. This might cut back the quantity of BTR housing, nevertheless it places larger worth on robust, long-term partnerships which supply top quality, sustainable houses to lease.”
