Private housing projects poised for rebound

After a difficult period last year, the value of private housing projects starts at an underlying level (below £100 million) is expected to rebound this year and grow at an even faster rate in 2027.

Glenigan’s construction market research predicts private housing growth of 6% in 2026, rising to 18% next year.

Glenigan economics director Allan Wilén says: “Wage growth has moderated in recent months but continues to outpace inflation. Inflation and interest rates are both expected to ease over the next twelve months. The rise in household incomes and lower borrowing costs is expected to buoy house-buyers’ confidence and market activity during 2026 and 2027.”

A backlog of high-rise projects waiting approval from the Building Safety Regulator contributed to a difficult 2025, but this is being cleared and should also provide a fillip, particularly in London, where many private residential projects are apartments.

Top 100 presence

Private housing was a major presence in Glenigan’s ranking of the 100 largest schemes set to start on site in 2026. There were 26 private residential projects in this table with a total value of £4.8 billion.

The biggest private residential scheme set to commence this year is a £577 million development at Marsh Wall in Central London, being developed by Daejan Holdings (Project ID: 14317547).

There were 10 more private housing projects in the Top 100 located in London, including phase 1B, valued at £423 million, in the Meridian Water development in Enfield (pictured, Project ID: 21035208) and the £300 million Albert & Swedish Wharf scheme in Hammersmith (Project ID: 14271580).

Underlying growth

There is also a groundswell of rivate housings chemes at an underlying level (below £100 million), and Glenigan’s construction market analysis has identified 5,774 developments due to start on site this year.

The region with the largest number is the South East, where 981 developments are due to begin construction this year. These range from Persimmon’s plans for 165 homes in Chichester (Project ID: 20269851) to Berkeley’s Turnden development in Kent, comprising 165 units (Project ID: 19321298).

London has the next largest number, with 736 project starts coming up in the next year. These range from 43 flats in the Crystal Palace Market Square Development (Project ID: 08254884) to further phases in the Bollo Lane scheme in West London (Project ID: 21230217).

Planning applications

Glenigan’s research has identified planning applications to build more than 56,000 private residential homes submitted last year.

The newly merged Barratt Redrow has the largest planning pipeline after submitting detailed proposals to build nearly 8,000 homes. This includes more phases at the Martello Lakes development at Hythe in Kent (Project ID: 26031270).

Private Residential Planning Applications by Developer

Taylor Wimpey has also been busy on the planning front and is ranked second after submitting plans for more than 5,000 private homes. Proposals from the company range from 191 homes in St Albans (Project ID: 26034828) to 261 units at Sudbury in Suffolk (Project ID: 26029581).

Persimmon, the other member of the big three housebuilders, was ranked third after filing detailed applications to build nearly 5,000 homes. These ranged from 333 homes at the Bridge of Don near Aberdeen (Project ID: 24249198) to 508 units plus a country park and road bridge at Murton Steads Farm near Newcastle-upon-Tyne (Project ID: 23069948)

Strong trading ahead

With wider economic conditions improving and the red tape holding back starts being cleared, the private residential sector is set for a strong two years.