England needs 145,000 affordable homes built every year.
Last decade? The industry delivered 52,200 annually.
That’s a 93,000-unit gap. Every single year. While 1.3 million households sit on social housing waiting lists, developers are finding an answer in mixed-use projects that blend market-rate units with affordable housing, commercial space, and community amenities.
The UK construction market is heading toward £204 billion by 2029. Mixed-use developments are driving much of that growth.
Why Mixed-Use Works
The economics are straightforward. Market-rate units subsidize affordable ones. Commercial tenants generate steady revenue. Retail and office spaces create jobs on-site.
You’re not betting everything on one tenant class. When residential softens, commercial holds. When retail struggles, residential carries the load.
But there’s another benefit that matters to local authorities. These developments reduce car dependency. A 2018 study found residents in well-designed mixed-use projects drive half as much as those in outlying areas. Less traffic. Lower emissions. Better for planning approvals.
Government Backs the Model
The government’s committed £39 billion in funding to affordable homes over the next decade. That level of funding lets developers integrate affordable units into mixed-use projects.
Affordable housing completions increased 15% in 2024-25, representing 77% of all Homes England programme completions.
The Skills Gap
Here’s the problem. The industry needs 225,000 additional workers by 2027. Bricklayers, plumbers, carpenters. The exact trades needed to deliver these projects at scale.
Developers who can execute mixed-use builds with integrated affordable housing have government backing and market demand. But they need teams who can handle residential construction, commercial fit-outs, and infrastructure coordination simultaneously.
The projects coming to market show what’s possible. Market-rate apartments above retail. Affordable units integrated throughout. Shared courtyards and community spaces. All within one master plan.
The funding is there. The demand is urgent. What’s missing is execution at the scale required to close a 93,000-unit annual gap.