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Inside Housing’s guide to what to look out for in 2026
Inside Housing’s news team talks to experts from across the housing sector to find out what they are looking forward to – and worrying about – as the new year begins. Ellie Brown, Ella Jessel, Eliza Parr and James Riding report
Inside Housing’s news team talks to experts from across the housing sector to find out what they are looking forward to – and worrying about – as the new year begins #UKhousingDevelopment: the cash starts to flow, but will the sector be able to deliver?
The big news in housing development in 2026 will be the start of the new 10-year Social and Affordable Homes Programme (SAHP). Homes England has £27.2bn of funding to allocate, while the Greater London Authority (GLA) has up to £11.7bn. Bidding will open in February, and Homes England expects to deploy money from April.
Paula Heatley, development director at Platform Housing Group, is looking forward to working on an “ambitious bid” with Homes England.
But she sounds a cautious note: “We anticipate that 2026 will continue to be challenging for the sector, with regulatory and financial pressures leading many peers to adopt conservative development strategies.”
Richard Petty, outgoing head of UK residential valuation at JLL, predicts that the government will “demand results as the SAHP cash starts to flow”.
“We will see stronger partnerships between house builders and registered providers, recognising affordable housing as the enabler of mixed-tenure development,” he adds.
James Bradbury, group director of growth and development at Stonewater, expects “increased reliance” on strategic partnerships and for-profit involvement “for funding certainty and flexibility to aid a strong delivery pipeline”.
There could also be greater interest in large-scale regeneration projects, Ms Heatley at Platform predicts, driven by flexibilities within the SAHP around additionality.
Maggie Rafalowicz, a director at Campbell Tickell, says that devolution and mayoral authorities “will play a growing role influencing the drive and delivery of new homes”.
She adds: “We can expect the new integrated settlements to enhance housing delivery and the focus on placemaking – particularly with the potential return of Total Place. The results of the local elections will inevitably affect this, though.”
Russell Baldwinson, executive director of development at LiveWest, expects delivery of new homes in the sector to come in below national targets, due to continued challenges for the housing market.
“[The] cost of borrowing may ease a little, which could positively impact new affordable housing delivery. However, the cost impact of legislative changes and inflationary cost pressure could negatively impact this,” he warns.
Council housebuilding: huge opportunities
A big shake-up in local government funding is on the agenda this year, and councils will also be looking forward to the launch of the 10-year SAHP.
There are “huge opportunities” for council housing teams, according to William Cornall, director of regeneration and place at Maidstone Borough Council in Kent. Constrained appetite for development among housing associations is a chance for councils to step up and support a “renaissance in council housebuilding”, he says.
Other government funding streams, such as the Local Authority Housing Fund, also present a chance for councils to assemble their own portfolios of temporary accommodation to alleviate the homelessness crisis, Mr Cornall points out.
Setareh Neshati, director of regeneration and development at Westminster City Council, wants to see “continued collaboration between councils and partners to accelerate delivery”.
“I expect 2026 will bring more emphasis on innovative funding models and partnerships to unlock complex sites, as well as a push towards net zero targets shaping design and construction,” she adds.
The whole sector is watching the outcome of the rent convergence policy, expected in the Budget but pushed to the new year. Tom Hunt, chair of the Local Government Association’s Inclusive Growth Committee, says convergence will be paramount for councils to be able to “develop their pipeline of new affordable and social housing”.
Asset management: the sector will need to respond to tightened standards
Two key pieces of legislation affecting how the sector manages its stock will come into force in 2026. First, in May, is the Renters’ Rights Bill. Matthew Lake, partner at law firm Weightmans, says this has “fundamentally rewritten” the framework for possession and rent increases, as well as banning no-fault evictions.
Mr Lake says an initial period of uncertainty after the law comes into effect is “inevitable”, but he warns that “with tenant representatives expected to actively exercise these new protections, an uptick in litigation looks unavoidable as the courts start to shape the case law”.
Second, Awaab’s Law, which since last October has brought in strict deadlines for providers to deal with repairs, will this autumn be extended to cover a wider range of hazards.
Mr Lake notes that the first phase of the law has already led to successful claims – while the second phase will “materially” increase legal and financial risk. He also expects that the Housing Ombudsman, which had its busiest year ever in 2025, is “likely to take a tougher line, with more complaints, firmer determinations and higher compensation awards” in the months ahead.
Other things to look out for this year include the government’s response to its consultation on the reformed Decent Homes Standard, which could change how disrepair is measured and bring in new requirements on safety, energy efficiency, and damp and mould, albeit in at least 10 years’ time.
For Eve Blezard, policy lead at the Chartered Institute of Housing (CIH), the response “could provide asset teams with an overarching framework to support delivery around safe and healthy homes”, while the group has been clear that “alignment across these reforms will be critical for long-term investment planning.”
Ms Blezard also highlights the joint Ministry of Housing, Communities and Local Government and Ministry of Justice consultation on housing disrepair as an “important issue”, while also pointing to the increasing prominence of access on the sector’s agenda.
“As statutory timeframes tighten, asset management will increasingly need to understand household circumstances and the possible effects of hazards, not just the home’s condition,” she says.
“The organisations that thrive will be those that embrace technology and move to a culture of proactive risk management and transparency”
Jon Slade, a director at Campbell Tickell, says there are “more rules than ever shaping service delivery” and “arguably, less money as building inflation outstrips consumer/retail price inflation”.
Mr Slade warns that the tension could have a knock-on impact on housing delivery: “Less development will continue to be a necessary last port of call for some landlords in order to create sufficient funds to invest in making and keeping current buildings safe and in sufficiently good condition.”
Finding in-house staff or contractors with modern skill sets and outlooks “will be an ongoing challenge”, he says.
But he does highlight potential solutions, such as drone surveying and using AI to improve data collection, adding: “The best mitigations lie in modernising approaches to data-gathering/analysis and work programming/procurement and delivery.”
Senior staff at housing associations also stress the need for modernisation. David Lewis, executive group director of property and investment at L&Q, makes the case that this year asset management will be “increasingly shaped by how effectively organisations use data to understand the condition of their homes and how residents relate to where they live”.
The G15 landlord is “already looking beyond traditional condition surveys and bringing together data from repairs, complaints, resident vulnerabilities, damp and mould cases, energy performance, and resident satisfaction”, he adds.
Thomas Fountain, director of asset knowledge and insight at Places for People, stresses the landlord’s preparations to comply with the second phase of Awaab’s Law and potential changes to building safety legislation, as well as increasing decarbonisation in its homes and expanding its partnerships.
“Underpinning all these aspirations is the need for skills,” he points out. “We will still need boots on the ground next year.”
He adds: “This means digital transformation will be key. The organisations that thrive will be those that embrace technology and move to a culture of proactive risk management and transparency.”
Finance: institutional investment and more mergers on the horizon
Unlocking new institutional investment across the sector will be an important theme this year, spotlighted by Homes England’s new five-year strategy.
This year, the agency will publish its investment prospectus, and will launch the new National Housing Bank in April. The bank has £16bn of funding and aims to unlock over £53bn in private sector investment.
Rob Beiley, partner at Trowers & Hamlins, expects to see “the growth of partnerships between housing associations and institutional investors, unlocking new capital to invest in existing stock”.
Karin Erlander, senior director, credit at The Housing Finance Corporation, says providers will “continue to navigate significant balance sheet pressures in 2026”.
She says that a “substantial number” of borrowers will need to refinance at rates “considerably higher” than their existing arrangements, despite potential interest rate reductions.
“This environment is likely to drive increased appetite across the sector for innovative capital-releasing solutions to support both development programmes and stock improvement initiatives,” Ms Erlander adds.
JLL’s Mr Petty also says the sector will see “other ways of raising capital continue to grow”, including “record levels” of stock rationalisation and more disposals of non-core assets.
JLL predicts more mergers as housing providers look to expand their capacity to build more homes and invest in existing stock.
Mr Petty adds: “They will have to borrow more to do so. This will mean a gradual return to the bond markets for larger providers, and an increase in new loan facilities compared with 2025. Debt needs to be underpinned with robust valuations, and EUV-SH values should show steady rises on the back of stable rent policy and modest inflation.”
A decision from the government on rent convergence – at either £2 or £3 extra per week – is expected this month, delayed from the Autumn Budget. But JLL says the boost from this will not come until 2027, and “will be at the low end, which will curb potential increases in values”.
Despite the challenges, JLL expects the sector to maintain its “zero-loss track record for lenders” in 2026.
Building safety: regulators and remediation acceleration
In a flurry of announcements before Christmas, the government confirmed that it will move forward with efforts to overhaul construction regulation in 2026. Two consultations are planned; the first, on creating a single construction regulator and a new regulatory framework for the building control industry, is open until March and a government response is due in summer.
The second will take place at some point in 2026, and will consider a plan to regulate the specific profession of fire engineers. The government has mooted making the job title legally protected, defining its duties in law and enforcing standards.
Officials also confirmed that the government will not at this point be updating the definition of higher-risk buildings that are subject to stricter regulatory standards, following a review by the Building Safety Regulator (BSR).
But the government said the BSR will carry out an “ongoing review” of the definition. Michael Wharfe, partner at Devonshires, is “expecting more change in 2026”.
He says: “There is extensive speculation of areas of extension, including a wider range of buildings with vulnerable residents, lower height thresholds for buildings with higher-risk build-ups such as timber frames, or buildings with particular usages such as hotels, entertainment venues, secure residential institutions and barracks.”
Mr Wharfe also sets out what to look out for when the government publishes its white paper on planned reform of construction products regulation, due in spring. The paper “will likely include plans for the conformity of assessment bodies, enhanced oversight, rules on product information and the establishment of a construction product library,” he says.
“While there is no confirmation, there may be changes to definitions of ‘building work’, additional competent persons schemes or a change in approach to emergency repairs.”
Mr Wharfe and others believe next year could also see the long-awaited Remediation Bill finally arrive.
This legislation, announced as part of the government’s Remediation Acceleration Plan last year, will bring in strict deadlines for landlords to fix unsafe cladding on their buildings via a new ‘duty to remediate’. But for Giles Grover, co-lead at the End Our Cladding Scandal campaign, the bill’s proposals “look like the usual piecemeal tinkering we’ve come to expect from government of whichever stripe”.
Overall, on the issue of protecting all leaseholders from the cost of fixing safety defects, Mr Grover predicts there will “only be more warm words, but little action on the ground”.
He says the government’s announcement last year of funding for remediation of buildings under 11 metres remains “hopelessly vague” five months on, and claims that a focus on enforcement “will only mean more people are turfed out of their homes”.
“Will there be meaningful change on the key issues of non-cladding defects, non-qualifying leaseholders, extortionate buildings insurance or shared ownership buybacks? We aren’t holding our breath,” Mr Grover adds.
Meanwhile, as Chris Doran, partner at Weightmans, points out, delays at the BSR have stalled efforts to fix unsafe cladding on buildings in some cases for a year-and-a-half, and, for him, “remain the sector’s most immediate challenge”.
“While the government’s decision to take direct control of the BSR and recruit additional staff is welcome, the impact of these delays is already being felt,” he adds. Last year, the BSR gained new leadership and launched a fast-track process for dealing with applications. But its current focus is on clearing its backlog of new build applications – and as of last November, it had not made as much progress on resolving these cases as it had predicted.
Mr Doran says legal activity is expected to ramp up after two landmark cases: the URS Corporation v BDW Trading Ltd case and the Triathlon Homes appeal, with Court of Appeal guidance provided on the latter potentially leading to more direct claims against developers from housing providers receiving Building Safety Fund support.
A key set of fire safety regulations affecting social landlords that manage high-rise blocks in England will come into force from 6 April. These providers will need to make sure they carry out a residential ‘personal emergency evacuation plan’ process in their buildings so that residents who may struggle to escape their homes in an emergency have as much protection as possible, with government guidance last month setting out how this should be done.
Dan Hollas, director of building safety at Clarion Housing Group, says the G15 landlord is looking ahead to “a year of acceleration”.
“We have already made strong progress on external wall system investigations and remediation, and in 2026 we expect to go further and faster through our Remediation Acceleration Plan,” he says.
Building Assessment Certificates and the growing requirement for fire strategies for existing buildings will also be key areas of focus for the housing association over the next year. Mr Hollas also highlights as a “key development” the revised PAS 9980, a code of practice on how Fire Risk Appraisal of External Walls should be carried out on multi-storey residential buildings.
The change was out for consultation until the end of last year, and for Mr Hollas its new version could help speed up how unsafe cladding is fixed. He says: “This will be critical in supporting faster, more confident remediation decisions across the sector.”
Wales: housing in an election year
The whole political landscape in Wales looks set to change in 2026, with Senedd elections in May. Community Housing Cymru (CHC) highlights that a new and expanded Senedd could “bring significant political change” with around 60% new elected members.
“Despite this volatility, cross-party recognition of the imperative to confront the housing emergency has never been stronger, which is a real cause for optimism,” the trade body adds.
CHC says all political parties “must commit to a bold and deliverable plan that charts a sustainable course” out of the housing crisis in Wales. This includes calling on the next government to deliver 60,000 additional affordable homes over the next decade.
The Chartered Institute of Housing (CIH) Cymru says 2026 will bring “one of the most highly contested elections seen since devolution”, with Plaid Cymru and Reform currently polling as the biggest parties. This could bring changes in housing policy direction in Wales; for instance, Plaid Cymru has already pledged to legislate for the right to adequate housing if it gets into government. CIH Cymru says it has consistently campaigned for this change, along with charities Shelter Cymru and Tai Pawb.
Before the May election, there are two important pieces of legislation going through scrutiny: the Homelessness and Social Housing Allocation (Wales) Bill and the Building Safety (Wales) Bill.
“Both these bills will need significant resourcing, both financial and an expanded workforce, to effectively implement the welcomed changes,” CIH Cymru says.
Care and support: a light at the end of the tunnel?
The supported housing sector has been crying out for more funding to keep its doors open. A survey by the National Housing Federation (NHF) last year found that one in 10 supported homes are at risk of imminent closure without urgent action from the government. The NHF emphasises that without these homes, thousands of people will be at greater risk of homelessness.
But John Glenton, chief care and support officer at Riverside, thinks supported housing providers may “see the light at the end of the tunnel” in 2026, for the first time in almost two decades. He says the government’s recent systems-wide evaluation of homelessness acknowledged that supported housing can be more cost-effective than “expensive and unsuitable temporary accommodation”.
The next year will see further implementation of the Supported Housing (Regulatory Oversight) Act 2023. Sarah Finnegan, head of policy at the NHF, says the legislation will “have a significant impact on the work of the sector” as it awaits the government’s response to the consultation.
“We support the act’s intention of ensuring high standards in supported housing and have urged the government to make pragmatic adjustments to the proposals, while taking a risk-based approach to avoid placing additional burdens on good providers and impacting the supply of this vital resource,” Ms Finnegan adds.
Draft regulations on new national supported housing standards, which come under the act, are expected in early 2026. Riverside says it looks forward to welcoming these new standards as a means of “eliminating poor-quality exempt accommodation and creating clear national standards for providers”.
Mr Glenton says it is also important for the sector to see a “speedy resolution” to the Treasury’s value for money review on homelessness and supported housing funding “so more providers do not have to close much-needed services in 2026”.
Homelessness: finally a national plan
With the government’s long-awaited National Plan to End Homelessness landing at the tail end of 2025, there is plenty for the sector to digest. As Emma Haddad, chief executive of St Mungo’s, put it, this is a “long-awaited roadmap” that sets up 2026 as a “year of action”.
There are some key moments to look out for – including a consultation on the new ‘duty to collaborate’, which will help prevent people from becoming homeless when they leave hospitals, prisons and asylum accommodation.
The Renters’ Rights Act comes into force this May. It will finally abolish controversial ‘no fault’ evictions, long cited as a leading cause of homelessness. This will be a “pivotal moment”, Ms Haddad says.
Autumn will also see the anticipated end to the housing benefit cliff edge for those who want to move into work.
“While 2025 has been extremely challenging for frontline services, there is real cause for hope. The strategy has set a promising direction,” Ms Haddad says. But she adds that delivering on its intent will require collective action from the government and the sector.
The strategy’s key pledge to halve the number of long-term rough sleepers by 2029 could slow the rates of rough sleeping in London, according to Pam Orchard, chief executive of homelessness charity The Connection at St Martins.
Ms Orchard also expects that the government will replace the Vagrancy Act, being repealed in May, with other “community safety” legislation intended to reduce begging. “This will also be very divisive for the sector, so I predict some rows.”
Youth homelessness charities celebrated big wins in the strategy, including a stronger focus on prevention and a dedicated young people’s chapter in the Homelessness Code of Guidance.
But Ella Nuttall, policy and research manager at homelessness charity Centrepoint, doesn’t expect 2026 to be “plain sailing”, and indications show that youth homelessness will continue to increase. “For Centrepoint, the single biggest thing that would make a difference is perhaps the most difficult: tackling the housing crisis,” she says.
London Councils’ housing lead Grace Williams points out: “London boroughs collectively spend £5.5m daily on homelessness.”
She adds: “Unfortunately, I can predict with absolute certainty that extreme homelessness pressures will remain a top concern for London boroughs as we go into 2026.”
Scotland: a Budget and election manifestos
In Scotland, all eyes will be on the government’s Budget in mid-January, which is expected to set out crucial details of a £4.9bn, multi-year investment in the country’s affordable homes programme.
Richard Meade, chief executive of the Scottish Federation of Housing Associations (SFHA), says this will be “hugely significant for housing associations and co-operatives” and stresses that “we need to see as much of that £4.9bn as possible be public funding for developing homes”.
Once the full spending plans are revealed, the focus will move on to the Scottish elections in May. We will be looking out for how housing features in the parties’ manifestos – and the asks from Scotland’s housing sector. Mr Meade emphasises that the new parliament “will look incredibly different” as around a third of the country’s MSPs are standing down.
But he stresses a need for clarity on net zero standards for social housing to be a high priority of the next government. For him, “it would be unconscionable for this to drag on any further, as the uncertainty created is affecting housing associations’ decisions and plans on retrofit and development”.
Other delayed legislation, such as the Heat in Buildings Bill, could also be on the agenda after the May contest.
David Bookbinder, director at Glasgow and West of Scotland Forum of Housing Associations, is similarly strident in calls for certainty on the decarbonisation goals the sector needs to meet.
He says: “The new administration is going to have to come off the fence and finally announce clear minimum energy efficiency standards and timescales across all housing tenures – if you can’t tell owners what to do straight after an election, when are you ever going to?”
Beyond the elections, there are other key dates for the diary in the sector.
Ashley Campbell, policy and practice manager at the Chartered Institute of Housing Scotland, says: “It will be a busy start for the new parliament with the new Housing Act requiring regulations and guidance, most notably Awaab’s Law, rent control, domestic abuse and the new prevention duty.
“We can also expect some movement on energy efficiency and climate change following the publication of a draft bill in November 2025 and a much-awaited report from the Scottish Law Commission on the introduction of owners’ associations for tenements – a vital step in supporting work in mixed-tenure blocks.”
And in May, Scotland’s social landlords will have to report data on damp and mould for the first time in their Annual Return on the Charter to the Scottish Housing Regulator.
Northern Ireland: development wobbles
Northern Ireland’s housing associations were dealt a blow at the end of 2025, when news came from Stormont that grant levels for social housing would be cut.
Housing minister Gordon Lyons has insisted it will lead to more, not less, social housing – but analysis by the Northern Ireland Federation of Housing Associations (NIFHA) warned that over half of new planned social homes will now not be viable.
Carol McTaggart, group chief executive at Clanmil, one of the country’s largest social landlords, warns that many new homes already planned may “now never become a reality”.
She is calling for a “collective response” from the sector, adding: “2026 can be a defining moment for Northern Ireland’s housing sector – one where we all pull together and do better for those who depend on us.”
Meanwhile, the end of the year saw homelessness figures rise again, and the publication of new data from Northern Ireland’s statistics agency which showed that 58 people died while experiencing homelessness in 2024. Against this backdrop, all eyes will be on whether the region can revive housebuilding rates from their slump in 2025.
Ms McTaggart also flagged the introduction of the Department for Communities’ new Building Safety Act, which is currently being scoped, as a key development to look out for in 2026.
There is also the first review of the Decent Homes Standard in two decades, and the investigation of the Northern Ireland Housing Executive by the public services watchdog.
Sustainability: all eyes on the Warm Homes Plan
“All eyes” are on the government’s £15bn Warm Homes Plan, which is expected early in the new year, says Richard Ellis, director of sustainability at Peabody. The G15 has called for £3.7bn of the Warm Homes Plan to be ringfenced for social housing upgrades, and the removal of VAT from retrofit work.
Ministers are also expected to confirm the Future Homes Standard for new builds. Paul Smith, managing director at heat pump maker NIBE, says “the direction of travel is already clear for developers”: new homes are expected to be “zero-carbon ready” and heated by low-carbon systems.
Inside Housing recently expanded its sustainability coverage. Find all the latest sustainability news, insight and expert comment here.
The rolling-back of the biodiversity net gain (BNG) scheme to unlock smaller sites for housebuilding has received a mixed response.
Polly Montoneri, partner at law firm Forsters, says giving developers greater exemptions will impact the emerging BNG credit market. The policy is being “made the scapegoat for a long-struggling planning system,” she adds.
Living sector: will London get building again?
After a year of “stymied investment” and construction starts, there are “positive signs” for the institutionally backed living sector in 2026, says Robert Sloss, chief executive of developer Hub. The BSR backlog is “easing”, and emergency cuts to London’s affordable housing quota and Community Infrastructure Levy relief aim to “grease the wheels” on stalled projects.
International investors are showing “strong interest” in build-to-rent and co-living, which can be “the missing piece” in securing viability on stalled sites.
Rob Boughton, chief executive of house builder Thakeham, says affordable housebuilding “should rise” in 2026 thanks to the government’s £39bn grant programme and planning reforms.
“The next step is to restore confidence and activity in the private sector through a demand‑side intervention,” he says.
“As the economic landscape shows signs of stability, we expect 2026 to mark a turning point for social housing,” agrees James Agar, head of real estate origination at Pension Insurance Corporation. He expects to see more public-private partnerships “coming to the fore” in 2026 to build affordable homes.
Louis Duffield, partner at developer Fabrix, says purpose-built student accommodation (PBSA) “in the right locations and priced right” will remain “defensive”, fuelled by “durable student numbers” and the opportunity to repurpose stranded buildings.
Richard Ward, head of research at StuRents, says market conditions for PBSA have become “tougher”, but there remain “pockets of opportunity” in cities with a lack of quality stock. The Renters’ Rights Act could benefit PBSA as small-time landlords sell up or raise rents, with a “positive knock-on effect for more affordable PBSA”.
A draft Leasehold and Commonhold Reform Bill will be published in the new year. Tim Seddon, chief executive of Retirement Villages Group, says the move to commonhold “poses a significant threat” to integrated retirement communities.
“It would make it totally impractical to build and operate new communities,” he says.
Last November, Inside Housing launched sister website Inside Housing Living, a website featuring all the latest news, insight and expert comment from the wider living sector, including for-profits, build-to-rent, student accommodation and later living. Find out more here.
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