"It is increasingly clear that public funding alone will not resolve many of the issues residential developers face. Our research highlights a clear evolution from opportunistic deals to more ambitious, long-term strategic partnerships, designed to unlock sites, secure funding, and drive sustained housing delivery at scale"
- Richard Tinham - Winckworth Sherwood
A new report, Strategic partnerships – a driving force for housing provision, has drawn on a combination of in-depth interviews and a broader survey of developers, social housing providers, local authorities and funders and found that 67% of residential developers have already entered strategic partnerships, with 76% expecting to enter additional ones within the next two years.
Among those already in partnerships, 67% described their experience as successful, while 29% reported mixed results. The data also shows that 87% of developers believe their competitors will enter strategic partnerships in the coming years.
According to the law firm Winckworth Sherwood, the most common motivations for forming these collaborations include sharing risk (54%), accessing funding (46%), gaining access to land (29%) and securing expertise (22%). In addition, 32% of developers reported partnering with local authorities specifically to gain backing and support.
Looking ahead, 89% of residential developers anticipate a rise in institutional capital entering the sector, while one in four private developers is considering investing in a for-profit registered social housing provider.
Richard Tinham, managing partner at Winckworth Sherwood, commented on the findings. “The Government has set ambitious targets for new housing delivery with a £39bn commitment on social and affordable housing over the next 10 years,” said Tinham. “But it is increasingly clear that public funding alone will not resolve many of the issues residential developers face. Our research highlights a clear evolution from opportunistic deals to more ambitious, long-term strategic partnerships, designed to unlock sites, secure funding, and drive sustained housing delivery at scale.”
The report also explores the qualities and structures that underpin effective strategic partnerships. It notes that developers and housing associations often favour larger sites due to improved efficiencies and greater certainty, and that partnerships can have a wider social impact, particularly in delivering homes for vulnerable or at-risk individuals.
In addition, the research suggests that collaboration with public sector bodies helps accelerate delivery timelines. However, for partnerships to succeed, it is essential that partners are closely aligned in their values and that governance structures are both clear and adaptable.
Private capital is expected to play a growing role in shaping future strategic partnerships, especially in projects that involve a social or affordable housing component.
“Our report shows that strategic partnerships have emerged as a vital mechanism for housing delivery, enabling organisations to build at scale,” said Tinham. “Not only do they share risk, unlock land, funding and expertise, they foster innovation, accelerate delivery and amplify community benefit. Importantly, strategic partnerships provide a robust framework for overcoming bureaucratic hurdles and regulatory obstacles, ensuring the successful delivery of large-scale residential development.”
