Insights from the Living UK South East Conference 2026 - Our View on the UK Living Market

Recently NIBC Bank attended the Living UK South East Conference 2026. During the conference, our colleague Ljudmila Popova, responsible for European Real Estate financing, joined a panel of capital providers to share NIBC Bank’s perspective on the evolving UK Living landscape.

The Living sector continues to attract strong investor appetite, even in a selective global environment. Across the panel, discussions centred on what drives capital flows today, where new opportunities are emerging, and how developers can position themselves for long‑term success.

Key panel takeaways from the panel

• Growing appetite for funding across the living sectors.
• Increasing competition among lenders, contributing to pricing compression.
• Key risk considerations, but also how debt providers can support project viability through competitive structures.

Reflections on current market dynamics

Market sentiment remains cautious, with equity still challenged by viability pressures and the need to meet investor return hurdles. London and the wider UK continue to compete with increasingly attractive opportunities across Europe for international capital. 
Despite this, NIBC Bank remains confident in the UK’s long-term fundamentals. Both London and the regions offer compelling opportunities, and we are committed to growing our exposure in this market.

Regulatory change continues to weigh on viability, although encouragingly the Building Safety Regulator’s Gateway 2 backlog is close to being cleared. There is a clear acknowledgement from the public sector of past delays, and a strong willingness to collaborate with private partners to accelerate delivery.

Statutory costs and obligations continue to compound pressure on viability (including SDLT, Building Safety and CIL contributions, Council Tax, and Affordable Housing thresholds) alongside construction cost inflation, higher financing costs, and rising consultant fees.

While demand for living products remains extremely strong, the number of project starts is low. This dynamic means that schemes capable of progressing today are likely to be highly attractive and valuable upon completion in the years ahead.
 
Looking ahead

It was a pleasure to connect with peers across the industry and exchange perspectives on how we can collectively accelerate much‑needed housing delivery in the UK.

If you would like to discuss financing opportunities in London or the South East, please feel free to reach out to Ljudmila Popova.