Ours is an industry built on choices, confidence, and consequences.
We often forget how sensitive and fragile the decisions we take every day in our businesses really are. Despite how many figures and numbers we put in our papers, gut feeling takes centre stage every single time. An off-hand comment at a meeting or a casual chat over drinks quickly becomes gospel in the boardroom or a cornerstone of a “market sentiment” report. If you doubt the fragility of our ecosystem, look at how housebuilders’ share prices reacted in June 2022 following a single phone call discussing Help to Buy in May. When one pillar wobbles, the entire foundation shakes.
Sentiment is a functional necessity in an industry that trades on swift movement and bold action. In this environment, whoever secures critical land first wins; whoever hesitates during a shift in the tide loses, and loses big.
There is no avoiding the reality: the housing development industry in England has recently been delivering less than perhaps ever before, including during the pandemic. A labyrinth of approvals, paperwork, and politics has made delivery exhausting. This has fuelled a downward spiral where concern breeds concern and panic drives panic. We have seen a distinct slide in confidence, not just in the wider market, but in each other, leading to spiralling speculation about whether recovery is even possible.
I cannot emphasize this enough: in 2026, that depressing market sentiment is wrong. Flat out wrong.
Let’s look at the facts. In April 2026, the new London Social and Affordable Homes Programme will launch. This brings more long-term funding to genuinely affordable housing than we have ever seen. This funding pays out from the start on site on an agreed schedule; once approved, it is guaranteed. It represents the largest direct cash injection into the forward purchase of homes in the market’s history.
For those sceptical about the appetite for affordable housing, remember that Housing Associations secured almost every priority they lobbied for in the CSR: rent convergence, remediation support, and long-term settlements. All of this comes online in 2026. While take-up has faced historical hurdles, those days are firmly behind us.
Simultaneously, HM Treasury is set to release tens of billions in debt, equity, and loans to the GLA and Homes England. By accessing this through the National Housing Bank, the process will be faster and simpler. From April, there will be more liquidity available to deliver housing of all tenures at rates that match, or even beat, the private market.
Gateway 2 approvals have been a significant bottleneck. While some point to the record number of schemes currently stalled, I see it differently: there is an unprecedented volume of homes ready for regulatory approval next year, backed by a government commitment to move them. Once we clear that logjam, the flow of delivery will be unlike anything we have seen before. And clear it we will – not least of which 2026 will finally introduce of staged approvals, allowing us to get on site whilst we work through details on schemes.
A major milestone for Places for London is the introduction of the new National Planning Policy Framework. While it contains many improvements, the “game changer” is Permission in Principle for sites on and around stations. In London, between our work and Platform4, we are uniquely positioned to capitalize on this.
It means that in 2026, Places for London will bring more sites to market than ever before, both through our JV partners and direct market sales – open to everyone. More importantly, it allows us to demonstrate to local authorities that a zonal system works. We can prove that removing bureaucracy doesn’t diminish quality; it simply accelerates outstanding developments.
To recap: 2026 brings an unprecedented cash injection for mixed-tenure pre-sales, tens of billions to unlock homes at or below market rates, a surge of high-density starts post-BSR approval, and a shift toward zonal planning on well-connected brownfield sites. London is, once again, a brilliant place to invest.
You are welcome to disagree. Maybe I am wrong. However, if I am right and the corner has already been turned, can you afford to sit this one out will simply watch someone else win?
If even one of these things’ lands, it will transform the difficulties we have all faced in 2025 and before. In 2026, at Places for London, we’re ready to take every opportunity 2026 brings.
We’re committed to building a Legacy for London. We’re creating and curating a legacy that reflects London’s diversity, ambition, and spirit. By transforming underused land into exceptional places, we will deliver sustainable living and well-connected communities for generations to come. Our work is rooted in community, driven by purpose, and built for lasting impact.
We believe every home is a step toward a more inclusive, vibrant, and resilient city. We are building a legacy for London for generations to come. 2026 is when and where we make that a reality. Will you?
Neil Hook is Director of Property Development at Places for London. Neil has worked for Homes England, across multiple Local Authorities and for two Mayors of London.
