By Mark Leaf, Chief Growth Officer at Strata
After a turbulent 2025, our industry enters 2026 with a renewed sense of purpose. Last year pushed every part of the market, from developers and local authorities, to planning teams and registered providers, to rethink the way we work. While many of the challenges were unexpected, the response across the sector has been overwhelmingly positive. A drive towards innovation, partnership, and higher standards is now shaping the landscape for the future.
What did we learn in 2025?
It’s no secret that 2025 was tough. The commencement and delivery of new homes stalled in places where delays to longer term grant funding regime created a hiatus in the commitment to new sites with delivery post March 2028. Many affordable housing providers were left unable to move forward, and that knock-on effect slowed planning across the board. At the same time, open-market conditions cooled and required a different approach.
Yet one thing became clear. The industry’s underlying desire to deliver new high quality homes never wavered. Instead, it unlocked a level of innovation we don’t usually see in housebuilding. Partners came together to find solutions that kept schemes viable and mixed-tenure developments moving.
For Strata, partnerships have always been part of the long-term plan, but 2025 accelerated that strategy. We broadened who we sell to, and worked more creatively with registered providers and investors to strengthen our proposition in shared ownership, affordable housing, and single family housing. Those new relationships have sustained growth while creating a more balanced, resilient business for the future.
Key trends to watch in 2026
1. Planning reform that finally speeds things up
A significant shift will come from planning. With decisions now regularly taking up to two years, compared to just 16 weeks seven years ago, the system is overdue for reform. The current Bill intends to cut this backlog and free up resources within planning teams.
If delivered as intended, this will give partners greater certainty on deliverability and funding. For housing associations and local authorities, the ability to hit critical grant deadlines more easily could be transformative. It also introduces the potential for longer-term prosperity planning rather than short-term firefighting.
2. Affordable housing demand will rise
Announcements around social and affordable housing funding will continue to play a defining role. We’re expecting increased demand not just for affordable units on open-market schemes, but for fully affordable and mixed-tenure developments. The sector’s appetite for this type of delivery is strong, and the right funding environment could unlock increased momentum.
3. Open-market uncertainty will continue
Mortgage availability and interest rates remain unpredictable. We saw how quickly market confidence shifted in 2025, and it’s reasonable to expect the same volatility in 2026 unless something radical changes. Developers will need to stay agile, and mixed-tenure models will be a stabilising force once again.
4. Build-to-rent will plateau
Single-family build-to-rent has grown rapidly, but we expect a levelling-off. Several factors will drive this including slowing rental inflation, stronger tenant protections through the Renters’ Rights Act, and higher tax burdens.
Buying may become more attractive than renting for many households, while investor appetite could soften. This could reduce the volume of BTR housing, but it puts greater value on strong, long-term partnerships which offer high quality, sustainable homes to rent.
How can we prepare for 2026?
Having a balanced, adaptable business model and a clear plan to support partners through these shifts is crucial. Streamlining house types to meet emerging regulations and build flexibility into specifications, from off-gas heating solutions, energy creation and battery storage, will enable partners to choose what works for their communities.
By broadening customer bases across private buyers, investors, and registered providers, we can maintain resilience in changing market conditions. Deepening collaborations with housing associations and increasingly working with local authorities and investors to help accelerate delivery ambitions is also crucial.
2026 won’t be without its challenges, but with renewed momentum in planning, clearer grant pathways, and a more collaborative sector, it presents one of the strongest opportunities we’ve seen in years to accelerate housing delivery. At Strata, we’re ready to play our part in making that happen.