Two-thirds of residential developers have entered strategic partnerships, research finds

The report, Strategic Partnerships – a driving force for housing provision, also found that three quarters (76%) of residential developers are set to enter into further strategic partnerships over the next two years.

Strategic partnerships in the housing sector are formal collaborations between organisations - such as local authorities, housing associations, developers and investors - designed to deliver new homes. They can take various forms.

According to the report, most developers have had positive experiences with the partnerships, with 67% saying they had been successful.

Almost a third (29%) said the results were "mixed", while just 4% thought they were unsuccessful.

Most developers reported entering into strategic partnerships to mitigate risks associated with building homes, while others sought partnerships to access funding, land, or expertise.

Just over half (54%) said they entered into strategic partnerships primarily to share risk, while 46% cited access to funding, 29% pointed to access to land, and 22% listed access to expertise as key drivers.

One in three (32%) also specifically partnered with local authorities to secure their backing and support.

Elsewhere, the report found that 89% of residential developers expect to see an increase in institutional capital in the sector, and 25% of private residential developers are considering investment in a for-profit registered social housing provider.

The report also detailed lessons strategic partners have learnt and how the programmes are likely to evolve and develop.

These included a finding that developers and housing associations favour larger sites that offer greater efficiencies and certainty, and that strategic partnerships have a greater "community impact", particularly providing homes for at-risk individuals.

It also said partnering with the public sector accelerates project delivery, but also warned that values need to be closely aligned between strategic partners if they are to succeed.

Winckworth Sherwood's report was based on a survey and in-depth interviews with senior representatives from across the industry, undertaken in spring 2025.

Respondents and interviewees included developers and housing associations, consultants, banks and investors involved in partnership models, with objectives ranging from new build provision to repurposing.

Richard Tinham, Managing Partner at Winckworth Sherwood, said: "The Government has set ambitious targets for new housing delivery with a £39bn commitment on social and affordable housing over the next 10 years. But it is increasingly clear that public funding alone will not resolve many of the issues residential developers face.

"Our report shows that strategic partnerships have emerged as a vital mechanism for housing delivery, enabling organisations to build at scale. 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."

Adam Carey