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Is the Development Market Stabilising, Falling, or Growing?
29 September 2026

For landowners trying to interpret the current economic headlines, understanding the true state of the property market can feel like a guessing game. At Robinson & Hall, we are at the coal face of a number of development deals, which gives us a front-row seat to what housebuilders are actually doing, rather than just what the news is reporting.

The reality on the ground is complex, but the outlook for well-prepared sites remains encouraging.

It is no secret that the broader economy has faced difficulties recently. Increased borrowing costs, building costs and inflation have naturally introduced an element of caution into the housebuilding sector. In this environment, poorly prepared or heavily constrained sites have indeed seen a dip in demand, as developers are less willing to take on unknown risks or are overly cautious, leading to lower bids.

However, for high-quality, strategically positioned land, the market is not falling; it is stabilising, and in some highly desirable areas, we are continuing to see good offers. The fundamental national shortage of housing remains, and the political pressure to deliver new homes means that developer appetite for the right sites is still very much alive. There are still not enough sites on the market to keep up with the growing need for housing.

Responding to the New National Planning Policy Framework

Following the publication of the new National Planning Policy Framework in August 2026, there is now greater clarity on the Government’s direction of travel for planning and housing delivery. The revised framework places renewed emphasis on delivering a sufficient supply of homes, supporting sustainable growth, and applying national decision-making policies consistently across England. For landowners, this creates a more defined policy environment in which well-located, deliverable, and properly promoted sites are likely to attract continued interest from developers, particularly where they can demonstrate sustainability, good access, and alignment with local and national housing objectives. However, the opportunity is not automatic: sites still need to be carefully assessed, technically robust, and presented in a way that gives promoters and housebuilders confidence.

The Potential Return of Help to Buy

A further factor that could influence the development market is the Government’s proposed replacement for the Help to Buy scheme.

Based on the information released so far, the Government has just announced a new first-time buyer initiative called “Your First Home”, with full details expected to be confirmed in the October 2026 Budget. The scheme is reported to mirror some aspects of the former Help to Buy programme by providing a Government-backed equity loan for the purchase of new-build homes. Current proposals suggest buyers may only need a 2.5% deposit, with the Government providing an equity loan of up to 20% of the purchase price and a conventional mortgage funding the balance. However, eligibility criteria, price caps and implementation details have not yet been confirmed.

For the development and land market, the announcement is potentially positive as it could increase demand for new-build homes and widen the pool of prospective buyers, which in turn may encourage housebuilders to acquire and deliver more sites, leading to a more competitive sales process. The Government has explicitly stated that one of the scheme’s aims is to support home ownership whilst stimulating demand for newly-built housing.

That said, the previous Help to Buy scheme attracted significant criticism. Whilst it helped many first-time buyers onto the property ladder, it could be argued that it artificially increased demand for new-build properties, allowing developers to achieve higher sales prices than might otherwise have been supported by the market. When those purchasers later came to sell, Government support was no longer available to the prospective buyers buying a second-hand property, meaning some homeowners found that resale values did not match the premium they had originally paid. In certain cases, homeowners experienced limited capital growth or losses after accounting for selling costs and moving expenses. 

For now, the key message is that the proposed scheme has the potential to support the new-build sector and improve affordability for first-time buyers, but it remains unclear whether the final structure will avoid some of the unintended consequences associated with the original Help to Buy programme. The October Budget should provide much greater clarity on whether the new policy represents a genuine improvement or simply a reworking of the previous model, which may bring with it the same issues previously observed.

The Importance of De-risking a Development Site

Housebuilders are firmly focused on building homes, which means they have little appetite for managing complex peripheral issues. Sites that come with unresolved risks, whether that involves complicated access rights, archaeological concerns, contamination, or obligations to build out commercial spaces and schools, can struggle to find traction.

To achieve premium values today, a site must be meticulously “de-risked”. This involves packaging the land effectively before it reaches the market. Supplying a comprehensive, transparent dataroom from day one, including clear property titles, fully discharged planning conditions (where possible), up-to-date surveys, and letters of reliance allows developers to bid with confidence. Anything missed could derail negotiations later or lead to the increased risk of price chips.

For many landowners, stepping into the world of property development can feel like navigating a minefield. The industry is complex and, unfortunately, can attract opportunists.

To protect our clients, we partner them with reputable, well-funded development promoters. A well-structured promotion agreement aligns the interests of both the landowner and the promoter, ensuring that the heavy lifting of the planning process is handled by experts while safeguarding the landowner’s financial return. We sit squarely between our clients and the promoter, managing the relationship and ensuring that every twist and turn of the planning journey is handled collaboratively and transparently.

While the market is certainly more challenging than it was a few years ago, our proactive approach to de-risking and assisting with strategic promotion continues to yield exceptional results. We are currently actively advising clients on over 80 potential development sites across our operating region. Furthermore, our ability to match the right land with the right buyers has led to the successful sale of several sites this year alone, totalling the sale of over 800 units on behalf of our clients.

The development market has stabilised and is undoubtedly challenging, but with the right preparation and expert guidance, it remains incredibly lucrative. If you are considering the development potential of your land and would like a realistic appraisal of its value and prospects, we are always happy to visit clients, both old and new, to help them take that first step. There will be no charge for this visit.

Please get in touch to discuss how we can help you unlock the true value of your land.

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