Gray Matters: January Edition
Early 2026 has seen people updates alongside shifting market dynamics and regulatory change. This edition of Gray Matters considers how these signals are shaping the housing sector.
People and Progress 👥
We are pleased to announce the promotion of Mia McKean to Business and Digital Executive. Since joining Thomas Gray in late 2024, Mia has made a strong and immediate impact. Her progression reflects both her entrepreneurial approach and the value she brings to the business.
We are also proud to congratulate Paul Raymond MBE, Project Manager, on his inclusion in the King’s New Year Honours List. This recognition honours more than 43 years of service to the English Shotokan Karate Association and exemplifies leadership that extends well beyond the workplace. With over three decades in the industry, Paul continues to deliver complex projects while mentoring teams and setting consistently high standards.
Industry Insights 🏘️
Recent updates across the sector highlight shifting priorities in delivery strategy, land investment, financing conditions and regulation as housebuilders position for the year ahead.
Early Signals for 2026
- Completions down 9%, but underlying performance remains resilient
- c.£270m profit delivered despite lower output
- 9,500 new plots secured in H2, strengthening the medium-term pipeline
- Clear alignment with the government’s £39bn Affordable Homes Programme
- Continued outlet expansion across the network
- £210m invested into land in H1, reinforcing future delivery capacity
- Forecast profit of c.£440m, signalling confidence in medium-term demand
- Robust 2025 with 11,229 completions and c.£420m operating profit
- 2026 delivery will be more second-half weighted, reflecting a lower opening order book
- Margins expected to soften as land sale benefits unwind
- Strategic shift toward smaller, higher-return sites, prioritising capital efficiency and operational discipline
- Proposed 900–1,100-home, landscape-led development south of Weaverham
- Circa 45% affordable housing, addressing local need in Cheshire West
- 8.5ha nature reserve and extensive green infrastructure
- New community facilities and 2.3km of footpaths and cycleways
UK Mortgage Market Outlook 💷
Analysts report increased confidence in the 2026 mortgage market driven by greater competition among lenders and expectations of further rate reductions. This backdrop suggests improving conditions for buyers and refinancers as the year progresses.
On 27 January the Building Safety Regulator (BSR) transitioned to a standalone executive body. Moving out of the HSE and into a dedicated role under the Ministry of Housing, Communities and Local Government reflects an expanded remit to raise safety standards and drive competence across the built environment.
