Following the news that a merger between London and Continental Railways Limited and Network Rail’s property development team will facilitate the delivery of 40,000 new homes, a new report from law firm Winckworth Sherwood suggests strategic partnerships are ‘fundamental’ in enabling residential developers to deliver at scale.
The law firm reports that 67% of residential developers have already entered strategic partnerships, with 76% expected to agree to more deals within the next two years and 87% expecting competitors to do the same.
Amongst the reasons cited by developers for the strategic moves were to share risk (54%), access funding (46%), to access land (29) and access expertise (22%). A third (32%) said they entered into strategic partnerships with local authorities to secure their backing and support.
The majority of residential developers said strategic partnerships were successful (67%), with 29% saying the results were mixed.
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 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 is the result of in-depth interviews and a wider survey of developers, social housing providers, local authorities and funders. It also explores the drivers behind strategic partnerships, the lessons strategic partners have learnt and how they are likely to evolve and develop.
It found that developers and housing associations favour larger sites that offer greater efficiencies and certainty, strategic partnerships deliver greater community impact, and collaboration and partnership with the public sector accelerates project delivery.
Tinham added:
“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.”
