Gray Matters: March Edition
Shifting priorities across strategy, funding and regulation indicate a significant market recalibration. This edition of Gray Matters examines the signals defining the Built Environment.
Team Updates 👥
With just over three weeks until the London Marathon, our Consultant Adam Keen is preparing to take on the challenge in support of Step by Step Partnership Ltd. This charity provides essential aid to vulnerable young people facing homelessness. Operating within social housing, we witness the vital impact of secure accommodation and stability.
Adam aims to raise £2,500, any contributions to his fundraising page are greatly appreciated.
Industry Insights
🏘️ Vistry Group | FY25 Results
- c.£270m adjusted PBT on £4.15bn revenue.
- 15,658 completions, with improved profitability despite lower volumes.
- Average selling price of £282k (+3% year-on-year).
- Transitioning towards partnership-led models with housing associations and institutional investors.
Alongside the figures, Greg Fitzgerald has announced his retirement, concluding an influential tenure that defined the group’s market repositioning.
🏘️ Persimmon Homes | FY25 Results
- c.£446m underlying PBT on £3.75bn revenue.
- 11,905 completions, marking a 12% increase in volumes as the group successfully scales its three core brands.
- Average selling price of £278k (+4% year-on-year).
- Leveraging a unique vertically integrated model and a strategic land bank to maintain a five-star HBF rating while expanding the outlet base.
🏦 National Housing Bank | Strategic Funding
- Officially launched 1 April 2026, headquartered in Leeds.
- £16bn fund set to unlock up to £53bn in private investment and support the delivery of 500,000 homes.
- First major partnership announced with Aviva, a £100m commitment to develop 3,300 rental properties in Manchester and Liverpool.
Objective: Designed to de-risk significant projects and bridge market failures through debt, equity and guarantees.
🌍 New Towns Programme | Delivery at Scale
- Seven locations confirmed, each targeting 10,000–40,000 properties each.
- Key schemes include Tempsford, Milton Keynes and Brabazon.
- Focus on infrastructure-led growth and long-term placemaking.
A landmark intervention reinforcing the necessity of land and planning capability.
⚡ Future Homes Standard (FHS) | Technical Transition
- £27.2bn funding cycle now live with a 60% Social Rent mandate.
- 10-year CPI+1% rent settlement offers income certainty.
- Awaab’s Law Phase 2 necessitates increased reinvestment in existing stock.
Financial capability and technical execution must now work together, reflecting evolving leadership requirements.
💷 Housing Association Landscape | Funding & Regulation
- Movement toward low-carbon, tech-led specifications.
- Accelerated adoption of solar integration, heat pumps and advanced systems.
- Phased rollout providing a defined pathway to 2028 compliance.
The focus now shifts from policy to execution, with design, engineering and commercial alignment critical to delivery.
📊 Market Conditions
Data indicates modest price growth and improved sales activity, though affordability pressures persist. Borrowing costs remain influenced by the wider economy, creating a selective recovery. Government focus, particularly in London, remains on unlocking stalled sites to accelerate supply.
