The headline numbers are stark. London's average house price is down 3.3% year on year to £542,000, the seventh consecutive month of annual falls and the weakest performance of any English region. Just 3,248 private homes were started across all 33 boroughs in the first nine months of 2025, an 84% collapse versus a decade ago. Molior's latest analysis confirms it is now unviable to build profitably across the half of London trading below £650 per square foot, leaving 162,000 of the capital's 281,000 unbuilt consented homes effectively undeliverable on current economics.

But beneath those headlines, a very different market is taking shape. Outer London is quietly outperforming. Walthamstow is up 5.9% year on year. Redbridge is up 5.3%. Bromley is up 3.0%. Croydon is up 2.5%. The Elizabeth Line, Overground extensions and PTAL uplift are reshaping micro-market dynamics, and the boroughs with the right transport connectivity are where day-to-day development business is actually getting done.

This is the most comprehensive single briefing on Greater London's development finance market available right now. Built specifically for property developers, land buyers, capital partners and investment professionals operating in the capital.

What we cover in this episode:

The bifurcation of the London market and what it means for site acquisition strategy. Sold price data borough by borough, including the 11.2% fall in Kensington and Chelsea and 10.8% drop in Westminster against the gains in outer London. Why the £650 per square foot viability threshold is now the single most important number in London development. The full impact of the December 2024 NPPF reforms, the second NPPF consultation that closed in March 2026, the Planning and Infrastructure Act 2025 and the Mayor's emergency housebuilding package, including the new Time-Limited Planning Route at 20% affordable housing by habitable room. Current development finance pricing across senior debt, stretched senior, mezzanine, bridging and equity, with all-in rates clearing in the 6.5% to 9.5% range following the Bank of England's December 2025 cut to 3.75%. Where lender appetite is strongest in 2026, including PBSA, build-to-rent, co-living, care and senior living, and where the open-market for-sale conversation is hardest. The three categories of scheme genuinely moving forward in London: large regeneration platforms in Opportunity Areas, outer-borough intensification around well-connected brownfield, and selective grey belt release. Why the next twelve to eighteen months represent the best structural window for London development capital since 2022.

Episode chapter

The two numbers that define London development in 2026 
Prime Central London versus the outer boroughs 
The viability crisis: why half of London cannot be built 
Housing targets, the new London Plan and the delivery gap 
NPPF reform, the Planning and Infrastructure Act and the Mayor's emergency package 
Development finance pricing, leverage and the lender pool 
Sector appetite: PBSA, BTR, co-living, care and for-sale 
Where the schemes are actually moving forward 
Outlook for the next twelve to eighteen months

Key data points referenced:

London average house price February 2026: £542,000, down 3.3% year on year. 
Greater London median across 51 principal towns: £540,000 over 85,580 transactions. 
New-build completions: 1,586, just 1.9% of total activity. 
Private housing starts January to September 2025: 3,248. 
Unbuilt consented homes: 281,000. 
Viable above £650 per square foot: 119,200. 
Affordable starts 2024 to 2025: 4,522, down from 26,386 two years earlier. 

The Mayor's draft new London Plan target: 880,000 homes over ten years from 2026, or 87,992 per year. 
Bank of England base rate: 3.75%. 

Senior development finance: from 6.5% per annum at 65% to 70% LTGDV. 
Mezzanine: from 12% per annum, stretching gearing to 85% to 90% of cost. 
Bridging: from 0.55% per month at up to 75% LTV. 
UK BTR investment 2025: £5.3 billion, a record. 
London BTR starts: down 93% between 2022 and 2025. 
London PBSA pipeline: 14,600 beds under construction, the largest of any UK city.

Major schemes and locations referenced:

Old Oak and Park Royal, with its 24,000 home ambition and the Compulsory Purchase Order secured in September 2025. Royal Docks with 36,000 homes and the DLR extension to Thamesmead. Earls Court, approved by Hammersmith and Fulham in November 2025 and Kensington and Chelsea in December 2025. Meridian Water in Enfield, Canada Water in Bermondsey and Southwark, and Brent Cross Cricklewood in Barnet.

Outer borough opportunities referenced include Barking, Bexley, Havering, Sutton, Hounslow, Ealing, Hillingdon, Harrow, Wembley, Tottenham, Lewisham, Woolwich, Stratford, Ilford and Leytonstone.

Inner London market commentary covers Mayfair,

In this episode we work through the numbers, town by town, and unpack what the data means for developers, investors, and anyone sourcing development finance in the region.

We cover the headline stats: 18,392 residential transactions in the last 12 months, a county median of £188,750, and a year-on-year change of -0.2%. But dig below the county average and the picture is far more nuanced. Bradford is up 3.3%. Wakefield is up 1.9%. And the official ONS data puts Yorkshire and the Humber as the strongest-performing region in the entire UK at +3.9% annual growth to February 2026. Divergence is the story.

We also cover the regeneration pipeline in depth. Leeds South Bank, shortlisted by the government's New Towns Taskforce with capacity for up to 20,000 homes and £2.1bn in transport investment. Bradford City Village, with planning approved in February 2026 for 1,000 homes backed by £30m from Homes England. Platform_'s 451-home Sweetfields topping out in Holbeck. Legal & General's Mustard Wharf and Tower Works delivering 500 homes. Channel 4's national headquarters anchoring creative-sector demand.

On finance, we walk through the structures that work across this market. Senior development finance at 65% LTGDV, mezzanine stretching to 85 to 90% of costs, bridging for auction acquisitions, and development exit finance to replace expiring facilities. Plus why liquidity matters for lender pricing, and where the county's deepest markets are.

Read the full data-led market report here: West Yorkshire Property Market Report 2026

Explore the county overview and sub-market pages: West Yorkshire Overview

Chapters:

Introduction and why West Yorkshire matters in 2026 
The headline numbers: 18,392 transactions, £188,750 median, -0.2% YoY 
Regional context: Yorkshire and Humber leading the UK at +3.9% 
Town-by-town breakdown: Ilkley, Leeds, Wakefield, Huddersfield Bradford's growth story and the UK City of Culture effect 
Bradford City Village: £30m government backing and 1,000 new homes 
Property type analysis and the £260k spread 
New build premium: why 47.4% changes the viability maths 
Leeds South Bank: New Towns designation and 20,000-home capacity 
Live BTR activity: Platform_, Legal & General, Channel 4 
Development finance structures for West Yorkshire schemes 
Bridging, mezzanine, and development exit finance in practice 
Liquidity and lender appetite across the county 
Premium sales and what they signal for developers 
2026 outlook: where the momentum is, where the opportunities are 
How to engage Construction Capital on a live scheme

Key Takeaways:

The county headline of -0.2% masks significant divergence. Bradford at +3.3%, Wakefield at +1.9%, and ONS data showing Yorkshire and Humber as the UK's strongest region at +3.9%.

Leeds South Bank is one of three "most promising" New Towns locations with capacity for 20,000 homes. Government selection is expected by end of 2026.

Bradford City Village received planning approval in February 2026. £30m Homes England funding and £13.2m from the West Yorkshire Combined Authority. Phase one starts on site in spring 2026.

New build properties trade at a 47.4% premium to existing stock, which materially supports development viability.

Leeds, Bradford, and Halifax account for 72% of county transaction volume, which directly affects lender appetite and pricing.

Finance Your West Yorkshire Scheme:

Construction Capital is an independent capital advisory brokerage sourcing indicative terms from over 100 lenders within 24 hours. We work across development finance, bridging loans, mezzanine finance, and development exit finance.

Submit your scheme through our deal room for indicative terms within 24 hours.

Learn more: constructioncapital.co.uk

Data Sources: HM Land Registry, Office for National Statistics UK House Price Index, Place Yorkshire, ECF / Muse, Platform_, and Construction Capital proprietary data.