Social housing construction strengthens

Social housing construction work is strengthening and helping contractors compensate for weakness in the private sector.

While private sector work is faltering, social housing construction provided the largest share of residential projects starting on site in the first quarter of 2026, at an underlying value (below £100 million).

The latest Glenigan Construction Review shows that the combined value of social housing starts surged by 230% on the first quarter of last year and totalled £4,770 million. This sum represents 41% of all residential work started. In contrast, private housing starts slumped 44% to £3,653 million. The balance of work was for private apartments.

Social housing pipeline

Data compiled by Glenigan shows there are more than 300 social housing construction projects at an underlying level and expected to start on site in the next 12 months.

This workload ranges from spending by councils on new and existing stock to housing association-led projects.

Wolverhampton City Council wants to begin work imminently on half a dozen houses at Myatt Avenue (Project ID: 20228253). Tower Hamlets Council is also starting work immediately on a £13.6 million programme of structural strengthening works and external wall system installation (Project ID: 26246683).

Wales & West Housing Association is expected to commence construction on 27 homes in Conway in October (Project ID: 21439218), and Your Housing’s plan for 54 houses at Heysham Road in Liverpool should start on site a month later (Project ID: 22158154).

Capital plans

The region with the biggest pipeline of social housing construction projects is London. There are 57 projects at an underlying level with planning and a start date in the next 12 months.

These schemes range from further phases in the London Borough of Hackney’s Kings Crescent Estate development (pictured), with work beginning this summer (Project ID: 13152590), to Apex Housing Association’s £28.8 million plan for 203 houses, 56 flats, and a community centre in Derry, where a start is expected this Autumn (Project ID: 19136953).

The West Midlands has the next largest pipeline of approved work due to start construction in the next 12 months. There are 31 schemes ready to start in the region.

These range from 58 houses and 48 flats in the first phase of Walsall Metropolitan Borough Council’s Willenhall Garden City development that should commence in July (Project ID: 23059813) to Sanctuary Housing Association’s proposal for 26 sheltered flats in Stoke-on-Trent (Project ID: 23166051). Work should start here in October.

Housing associations spending

Housing associations continue to put in place arrangements for forthcoming spending programmes. Sovereign is planning to spend £10.9 billion on regeneration work and building 25,000 new homes over the next decade, and recently appointed 22 contractors to a £750 million framework to carry out work up to 2030 (Project ID: 24308174).

The framework is split into 12 lots, and successful contractors range from smaller regional outfits such as Thatcham-based Francis Construction to major players including Galliford Try and Wates.

Sovereign schemes coming up include a £29.1 million proposal to build 52 houses and 32 flats at St Mary’s in Southampton, where Thakeham Homes is anticipated to begin work in August (Project ID: 22370272).

Steady social housing stream

With a steady stream of work from a variety of different sub-sectors, social housing construction work offers opportunities to compensate for slower private sector residential work.