The developer now expects first starts in 2027 on major projects at Mayfield in Manchester, Lewisham in south-east London, Finchley Road in north London and MediaCity in Salford.

Landsec said that returns were currently not at sufficient levels to justify earlier starts.

In the last six months, the developer has secured a resolution to grant detailed consent for the first 879 homes at Mayfield in Manchester and secured resolution to grant part-outline and part-detailed consent for 2,800 homes in Lewisham.

This adds to the existing consents for 1,800 homes at Finchley Road in North London and an allocation for 2,700 homes at MediaCity in Salford.

But market conditions remain challenging with the firm highlighting the collapse in London housing delivery, where new starts in the first nine months of 2025 fell to just 3,248 – down around 75% over the past three years.

In a trading statment this morning, the developer said: “We could see first starts on site in 2027, taking into account detailed design works, Building Safety Act approvals, and site preparation. However, returns currently are not at sufficient levels.”

It said there were early signs of improvement in development market conditions. These included a “positive” policy shift in London around cutting affordable housing targets from 35% to 20%, halving the Community Infrastructure Levy, and easing design burdens.

Landsec added: “These measures are supportive… and could lead to an improved outlook for residential development returns in 12–18 months, but in the meantime capex spend will be very limited.”