London's new build market prepares for a post-Gateway 2 surge

The London residential development market stands on the brink of a major upcycle. While Gateway 2 planning and viability hurdles may currently slow momentum, beyond them lies one of the most active periods of new-build activity the capital has seen in years. 

Once schemes clear these regulatory barriers, a surge of development is expected to reshape London’s skyline and redefine the housing narrative for the next decade. 

Backed by capital, not just confidence 

This is not speculation. It is conviction backed by capital. The recent acquisition of Regal London by Arada, a Middle Eastern developer supported by ultra-high-net-worth investors, coming less than two years after the London Square Aldar purchase, signals just how much international faith remains in the resilience and upside of the London residential market. 

When global capital of that calibre enters or expands, it sends a clear message: London continues to be one of the most liquid and investable housing markets in the world, despite all the challenges the industry has recently faced. 

The opportunity ahead 

The fundamentals are compelling. London faces a chronic housing shortfall. Affordability remains at crisis levels, with household formation continuing to outpace supply. Political, planning, and investor forces are converging to unlock delivery. 

Developers who can navigate Gateway 2 will be first in line to meet pent-up demand. According to Knight Frank, land transactions are increasingly focused on mixed-tenure schemes, with a rising share of affordable housing. A clear sign of where the market is heading. 

Why affordable housing is taking centre stage 

A notable shift is underway: affordable housing is no longer a planning box to tick. It’s the anchor of successful delivery. Here's why: 

Changing perceptions of affordable housing  

Despite the clear benefits, some industry professionals still view affordable housing as less “glamorous and prestige.” But those in the know understand it’s the affordable component that often enables the private, not the other way around. 

Compensation trends are also shifting. While base salaries remain steady, performance-linked bonuses tied to delivery milestones are becoming more common, rewarding professionals who can navigate complex delivery landscapes. 

The two emerging models in new build landscape 

London’s residential sector is crystallising into two dominant development approaches: 

1. Mixed-tenure flagship schemes 

Think Regal/Arada or Ballymore. Large-scale, regeneration-led developments blending affordable, private, and commercial uses. For professionals, these projects offer exposure to complexity and scale, and serious career progression. 

2. Affordable-first models 

Some developers are flipping the model, prioritising affordable delivery from the outset, often in partnership with housing associations, local authorities, and community-led organisations. This opens doors for hybrid roles combining development, stakeholder engagement, and ESG reporting. 

Why hiring now matters 

We understand the hesitation around permanent hiring in uncertain markets. But with the post-Gateway 2 floodgates about to open, the competition for talent will be fierce. 

Temp-to-perm offers a smart middle ground: 

For candidates, joining early signals a growth opportunity. For businesses, it demonstrates conviction, and that’s increasingly important in attracting (and KEEPING) high-calibre talent. 

Once delivery accelerates, those same professionals will be fielding offers from every major player in the market.  

Should you switch careers now? 

For ambitious professionals, the next 12–24 months could define their careers. With capital flowing in, policy tailwinds behind affordable housing, and delayed schemes ready to mobilise in the early stages of 2026, the London residential market is on the verge of transformation. 

Those who position themselves early, client side, contractor side, or consultancy, will be at the heart of reshaping how London lives. 

The post-Gateway 2 landscape will demand agility, collaboration, and delivery expertise. Those who move early will be best placed to lead the market’s next chapter. 

If you’re looking to strengthen your development or delivery teams, or explore new opportunities within London’s residential sector, contact our team today.