Private House Building Eyes a 2027 Rebound

Posted by Glenigan on 8th July 2026 -

After a difficult period in 2026, Glenigan data is forecasting that private house building starts at an underlying level (work up to £100 million) will rise by 13% next year.

Glenigan economics director Allan Wilén says: “A gradual recovery in private housing is expected from 2027, supported by lower borrowing costs, rising real incomes, and improving consumer confidence. Supply-side conditions should also ease as regulatory bottlenecks diminish, and planning reforms increase site availability.”

This rise will moderate, but private residential starts are still expected to increase by 5% in 2028.

“The pace of recovery will depend on improving scheme viability, with developers continuing to favour lower-risk, higher-margin projects,” added Mr Wilén

Regional plans

With developers and housebuilders favouring lower-risk projects, this is creating a large pipeline of prospects at an underlying level.

Glenigan project information shows that more than 8,000 private house building developments valued at up to £100 million have detailed planning information and are expected to start construction in the next 12 months. This is creating major programmes of work across the UK.

The South East has the largest approved pipeline of projects at an underlying level.

The 1,319 projects due to start in the coming year range from 40 houses in the Oakwood at Folders Grove development at Burgess Hill by Jones Homes Southern (Project ID: 19101468) to Bellway’s Clover Fields scheme in Horsham, comprising 73 houses (Project ID: 20486038).

With house prices moderating significantly in London, the capital is the region with the next largest pipeline.

Forthcoming private house building schemes in the capital range from Donnington Properties’ plan to redevelop Linkenholt Mansions in Hounslow, West London, into 20 flats (Project ID: 22100891), to London Square Development’s Grand South proposal for 347 units in Vauxhall (Project ID: 14273193).

Multiple opportunities

Although Houses of Multiple Occupation (HMOs) have faced restrictions from some local authorities, HMOs are continuing to create work at a lower level through redevelopment and refits.

Glenigan’s data shows 175 HMO projects with detailed planning and due to start construction in the next year.

Most are smaller schemes, such as Grandwell Estate’s £970,000 plan for an HMO at Brigstock Road in Croydon (Project ID: 25525978) to Dunne Property’s £1.4 million plan to create an HMO on London Road in Oxford (Project ID: 25375055).

Top residential contractors

With the Building Safety Regulator making progress in clearing a backlog of approvals and interest rates low, developers are starting to progress some major private house building developments

This is boosting the order books at a number of the Top 10 contractors working in the private residential sector.

Graham tops the table with work, including a £110 million job for Lattimer to build 505 flats in Manchester (Project ID: 23297836).

Keady is building 588 flats and 34 townhouses in Knightsbridge for developer Amstone (Project ID: 21110211), while Tide is on the £117 million Portal Way development in London for Aldau (Project ID: 19009058).

Top 10 Residential Contractors

Contractor	No.	Total (£m)
Graham	2	317.0
Mears	2	312.2
McLaren	2	246.3
Keady	3	225.9
Hill	4	184.3
Caddick	3	130.6
Wates	3	120.4
Tide	1	117.2
Axis	3	114.8
RE: GEN	5	86.0
Source: Glenigan
Note: Excludes developer/builder contracts

 

Growth ahead

This year may prove hard going, but from next year, signs of improvement should emerge in the private housing sector to boost the prospects of companies working in this area.