Funding boost to lift social housing activity

Latest News Tue, Feb 10, 2026 8:13 AM

Opportunities in the social housing sector are set to increase over the course of this year as more funding is released.

Social housing starts at an underlying level (below £100 million), edged up 2% last year, helped by government funding in the Budget and Spring Statement.

Many housing associations are, however, waiting for money allocated in the Spending Review to become available. This funding should emerge in April and will help push projects up 6% over the course of 2026 and by a further to 12% by 2027.

Glenigan economics director Allan Wilén says: “Increasing social housing provision will be a key part of delivering the Government’s housing target of 1.5 million homes. Additional funding commitments in the Spending Review and greater access to private sector funding are expected to support a strengthening in housing associations’ development pipelines.”

Eleven of the 100 projects largest projects due to start on site this year are in the social housing sector. These schemes are worth a total of just over £2 billion.

The largest is the £400 million Fallowfield development at the University of Manchester, where the main works are due to begin in March (Project ID: 23180716).

Student accommodation falls under this sector as affordable housing and will help lift overall starts.

“There will be a further rise in student accommodation projects over the next two years as developers seek to capitalise on the exodus of buy-to-let investors from the student lettings market,” adds Mr Wilén.

At an underlying level (schemes below £100 million), Glenigan’s construction industry analysis has identified nearly 1,400 social housing schemes with planning permission and due to start on site in the next 12 months.

Some schemes are programmes of responsive maintenance from North Tyneside Council’s £12 million two-year programme to replace windows and doors on more than 14,000 rented homes (Project ID: 26034733) to a £26 million upgrade programme in Wolverhampton due to run for four years (Project ID: 26034829).

Other projects due to start in the forthcoming year are new developments, such as Lync-Cymru Housing Association’s plan for 40 flats in Mountain Ash near Cardiff (Project ID: 24137041).

Glenigan’s industry research has identified proposals for just over 6,000 social housing units submitted in detailed planning applications submitted during 2025. Of this total, 49% were plans for flats and 47% for some form of house, with the balance comprised of retirement accommodation.

Clarion submitted plans to build the most homes in detailed planning applications filed last year. The group has a development arm, Latimer, which has long-term plans to build 1,600 homes in the Dyecoats scheme on Kirkstall Road in Leeds (pictured), and has been applying for permission to build phased units within this programme (Project ID: 22135872).

Citizen had the next largest planning programme in 2025 with proposals for more than 700 homes. This ranged from 50 flats at Faseman Avenue in Coventry (Project ID: 24357638) to 360 houses and flats at The Crescent development in Kidderminster (Project ID: The Crescent).

Great Places was ranked third with more than 500 homes proposed last year, from 60 units at Salford Road in Bolton (Project ID: 25392613) to more homes in the ongoing Cutacre development in Manchester (Project ID: 25411047).

With a range of projects from major student accommodation developments to programmes of responsive repairs and new-build social housing schemes, the sector has plenty to offer in 2026.

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