Landsec pushes back starts on four major housing schemes to 2027

The developer now expects first begins in 2027 on main initiatives at Mayfield in Manchester, Lewisham in south-east London, Finchley Street in north London and MediaCity in Salford.

Landsec stated that returns had been at present not at adequate ranges to justify earlier begins.

Within the final six months, the developer has secured a decision to grant detailed consent for the primary 879 houses at Mayfield in Manchester and secured decision to grant part-outline and part-detailed consent for two,800 houses in Lewisham.

This provides to the prevailing consents for 1,800 houses at Finchley Street in North London and an allocation for two,700 houses at MediaCity in Salford.

However market circumstances stay difficult with the agency highlighting the collapse in London housing supply, the place new begins within the first 9 months of 2025 fell to simply 3,248 – down round 75% over the previous three years.

In a buying and selling statment this morning, the developer stated: “We might see first begins on web site in 2027, taking into consideration detailed design works, Constructing Security Act approvals, and web site preparation. Nonetheless, returns at present are usually not at adequate ranges.”

It stated there have been early indicators of enchancment in improvement market circumstances. These included a “constructive” coverage shift in London round reducing inexpensive housing targets from 35% to twenty%, halving the Group Infrastructure Levy, and easing design burdens.

Landsec added: “These measures are supportive… and will result in an improved outlook for residential improvement returns in 12–18 months, however within the meantime capex spend can be very restricted.”