Glenigan Reports Uptick in Housebuilding
Estate agents, new home builders, and property professionals are set to benefit from a spring boost in smaller-scale housebuilding, with fresh opportunities emerging across the UK. This growth is driven by residential starts under £100 million.
Residential-Led Recovery
According to data from Glenigan and Construction News, residential projects under £100 million saw a 7% rise in on-site starts from Q1 to Q2 2025, and stand 3% higher compared to April 2024. Residential schemes have been the key drivers of this growth:
- Private Housing: +22% quarter on quarter (QoQ), +29% year on year (YoY)
- Social Housing: +29% QoQ, +3% YoY
For estate agents, this signals a significant influx of new homes to the market. For new home builders, it’s an ideal window to accelerate small-to-medium scale developments.
Non-Residential Sectors Remain Mixed
While office projects are bucking the trend with a 31% increase QoQ and 26% YoY, other non-residential sectors are struggling:
- Retail: -19% QoQ, -33% YoY
- Hotel & Leisure: -26% QoQ, -25% YoY
- Education: -33% QoQ, -54% YoY
- Civils: -22% QoQ, flat YoY
For builders and investors, the focus should be on residential projects and select office schemes, while estate agents may need to adjust expectations for non-residential listings.
Regional Hotspots
Growth in housebuilding is strongest outside core urban centres. Here are some key regional trends:
| Region | QoQ Change | YoY Change |
| South East | +32% | +8% |
| South West | +15% | +29% |
| London | +22% | -10% |
| North West | +25% | -20% |
Estate agents will see rising listings in the South East and South West, making these regions ideal for builders to target. Investors should keep an eye on emerging growth corridors beyond London.
Strategic Takeaways
- Estate Agents: Prepare for a surge in small housing scheme listings, particularly private and social housing in the South East and South West.
- New Home Builders: Accelerate sub-£100 million projects—planning consents and SME support are favourable.
- Property Professionals & Investors: Use Glenigan’s regional data to fine-tune due diligence and capital allocation in emerging hotspots.
HBF Urges Action as Young Buyers Face a Decade-Long Struggle to Access Homeownership
The Home Builders Federation (HBF) is calling for urgent action from England’s metro mayors and the wider property sector to address the growing crisis in housing affordability, especially for young people, as the dream of homeownership continues to slip out of reach.
Young Buyers Shut Out
The HBF’s Broken Ladder report paints a bleak picture:
- The average first-time buyer must now save 50% of their leftover income for nine years to afford a deposit.
- In high-cost areas like London and the South East, this stretches to over a decade, with deposits now equating to 680% of disposable income in the capital.
- Government schemes, like the mortgage guarantee initiative, have had minimal impact, with just 3.8% of 18–30-year-olds using it between 2021 and 2023.
This data highlights the growing barrier to homeownership and the potential long-term impact on the housing market.
Metro Mayors Must Step Up
In a pre-election manifesto, the HBF urges regional leaders to take decisive action:
- Develop clear spatial strategies and speed up local plan delivery.
- Create housing delivery action groups to tackle issues like water infrastructure and planning delays.
- Address skills shortages through targeted training programs.
- Boost small-site delivery near transport hubs to support SME builders.
- Ensure affordable housing delivery with more flexibility in tenure and Section 106 agreements.
Implications for the Sector
- Estate Agents: Expect a prolonged reliance on rental demand among younger buyers, but may benefit from new stock tied to regional strategies and small-site growth.
- New Home Builders: Engage directly with metro mayors and focus on affordability-led developments in areas set to benefit from regional plans and infrastructure upgrades.
- Property Professionals and Investors: Monitor where metro mayors implement the HBF’s recommendations—these areas could become affordability-led hotspots, primed for long-term growth.
HBF Chief Executive Neil Jefferson summarized the urgency of the situation:
“Without coordinated leadership from regional mayors and government, we risk locking an entire generation out of homeownership.”
Pandemic-Era Property Hotspots See Sharpest Price Declines Post-COVID
The COVID-19 pandemic reshaped the UK housing market, driving demand for properties in suburban and rural areas as buyers sought more space. However, recent data reveals that some of these pandemic-era hotspots are now seeing notable price declines.
Key Findings:
- Urban Price Declines: Between 2022 and 2024, central London boroughs saw significant price drops:
- The City of London: -19%
- Kensington and Chelsea: -18%
- Westminster: -17%
- Suburban Adjustments: Areas that experienced a “race for space” are now seeing corrections. For instance, St Albans in Hertfordshire has seen half of its homes lose value since the start of 2025, despite broader national recovery trends.
- Home Counties Impact: Homeowners in the Home Counties are facing reductions of up to £150,000 below asking prices, signalling a waning appeal of these regions post-pandemic.
Implications for Industry Professionals:
- Estate Agents: This shift requires a revaluation of property valuations and marketing strategies, especially in areas that saw rapid growth during the pandemic.
- New Home Builders: Developers should focus on sustainable locations with long-term potential, rather than short-term trends.
- Property Investors: Current market conditions present opportunities to acquire properties in previously overvalued areas, but thorough due diligence is essential to assess long-term value.
