Source: Bloomberg

Date Published: 07.31.2025

Link: UK Housing Developers Downsize Projects as Delays Hit High-Rises

Delays in approving high-rise residential projects brought on by new building safety regulations after the UK’s Grenfell fire tragedy are having a knockdown effect on housing affordability by slowing construction, driving up development costs, and reducing the supply of new homes. With the planning process for taller buildings now taking over 40 weeks on average, developers face higher financing expenses and diminished returns, discouraging investment and encouraging developers toward lower-density projects. This has contributed to a wider housing crisis, as home completions fall short of national targets. “The UK has had a shortfall of about four million houses”, causing “Prime Minister Keir Starmer [to aim] to build 300,000 homes annually”. However, “the UK broker [Savills Plc] estimates that only up to 170,000 homes will be completed each year.” The bottleneck risks deepening the UK’s already significant housing shortfall and may push investors away from urban, high-density developments that are critical to addressing affordability in cities.