Deloitte crane survey tracks early development pipeline and hints at strong year ahead for housing in the city.
Manchester has had one of the UK’s most consistent residential growth markets in recent years, regularly outperforming many southern areas on demand, price growth and investor interest. Deloitte’s latest Crane Survey suggests that growth is likely to continue in 2026, with the city now entering a major year for housing delivery and a growing pipeline of schemes underway.
Crane survey acts as early market barometer
The Crane Survey is a good early indicator of supply as it tracks projects from the point construction begins. By monitoring new starts and on-site developments, it provides a forward-looking snapshot of what is moving through the system rather than simply recording completed homes. In addition, developers only commit to construction when they expect viable market conditions on completion, which means the survey is also an excellent barometer for the future of Manchester’s housing market.
The latest report shows Manchester’s residential construction activity moderated in 2025, as higher build costs and regulatory pressures slowed construction programmes. Work began on seven new residential developments during the year, and the number of homes under construction fell below 10,000 for the first time since 2016. They currently stand at 8,023, with 3,422 units completed.
Manchester enters major build phase
Deloitte says the real significance of the survey, though, lies in the scale of housing lined up for future delivery. Around 5,500 residential units are forecast to complete in 2026 — the second-highest annual total since the Manchester Crane Survey began — while a further 15,332 homes have gained planning permission. That combination of near-term delivery and consented supply points at a sustained period of construction.
The report also highlights that Manchester’s residential growth is being boosted by wider investment in the city. That includes the expansion of education and research space on the Oxford Road corridor, alongside major cultural and entertainment infrastructure developments, including Aviva Studios and Co-op Live.
These are not only reinforcing Manchester’s appeal as a place to live and work, but they are also driving both population and visitor growth, as well as long-term housing demand.
Construction boom key enabler of population growth
John Cooper, real estate and infrastructure partner at Deloitte, says Manchester’s residential sector, though, remains central to city-centre growth but is now operating in a more demanding funding and cost environment.
“Manchester’s residential sector continues to be a key enabler of significant population growth in the city centre, yet faces a critical balancing act,” he says.
“While 2025 saw reduced activity due to inflationary pressures and regulatory changes impacting construction timescales and market confidence, residential construction levels remain strong, reflecting the city centre’s enduring appeal as a beacon for investment and regeneration.
“However, a robust pipeline for 2026 should support continued strong levels, though a more cautious and selective approach from investors means developers must work harder on their proposals. Public sector funding will also be crucial in unlocking projects that support ‘good growth’ amidst ongoing headwinds. A focus on further investment, timely decision making and labour force skills are essential to driving construction activity.”
Regional rivals trail Manchester’s output
The Manchester survey is part of a wider, regional study, which encompasses Manchester, Belfast, Birmingham and Leeds. Across all four of those cities, there were 53 new construction starts recorded in 2025, compared with 47 in 2024. Manchester (17 starts) and Birmingham (23) were the two dominant regional construction markets, with Leeds (8) and Belfast (5) some way behind.
Deloitte concludes its report by saying that Manchester has one of the strongest forward residential supply positions outside London, with higher completion levels expected as projects progress throughout 2026.
