In 1927, the British Air Ministry, faced with the need to deal with increased bomber performance, issued Specification F.20/27 for a single-seat interceptor.

Carter, of Gloster Aircraft Company,[note 1] in close collaboration with engine designer Frank Halford.

[4] De Havilland chose to concentrate on civilian aircraft in 1930 and the DH.77 (along with the incomplete DH.72 bomber) were turned over to Gloster.

[5] The DH.77 was a small low-winged lightweight monoplane, of mixed metal-and-wood construction, powered by a 300 hp (224 kW) Napier Rapier air-cooled H-engine, which offered very low frontal area to minimise drag.

It was fitted with large span ailerons and a stabilator to give good control characteristics and spin recovery.