The real estate sector has heralded new chancellor Rachel Reeves’ promise to reinstate mandatory housebuilding targets as a “clear statement of intent”.
In her first speech to the country after being appointed chancellor of the exchequer, Reeves reinforced Labour’s plans to build 1.5m homes over the next five years, rewrite the NPPF and appoint 300 additional planning officers across the country.
Reeves said: “We will reform the National Planning Policy Framework and consult on a new growth-focused approach to the planning system before the end of the month, including restoring mandatory housing targets.”
She added that the Labour government also intends to create a new task force to accelerate stalled housing sites, she named masterplans such as Liverpool Central Docks, Worcester Parkway, Northstowe and Langley Sutton Coldfield.
Melanie Leech, chief executive of the British Property Federation, said: “It is very positive to see the new government hit the ground running on planning reform. Housebuilding targets are a clear statement of intent and will help accelerate delivery. We need to build more homes of all tenures and types, and so we urge the government to also consider bold targets for build-to-rent and affordable housing specifically. Housebuilding targets need to be supported with extra capacity in the planning system, so it’s good to see Labour also restate their commitment to get more planners in.”
She added: “The government must also make sure the system supports employment uses as well as homes so that we create sustainable communities. The move to streamline infrastructure delivery is welcome and should include the logistics facilities that are vital for the movement of goods and are chronically undersupplied in key parts of the country.
“The government is right to look at all options to drive development for growth and the delivery of homes. Moves to fast-track brownfield development are critical to regeneration across the country and a review of the green belt will help to identify those sites that can be brought into use for homes while continuing to protect the green spaces we all enjoy.”
James Dunne, head of operational real estate at Abrdn, said: “We welcome any changes that help facilitate desperately needed further investment into the UK housing market.
“It is universally accepted that planning reform is necessary, and changes to policy to ensure that the optimum number of quality and sustainable homes is delivered in the most appropriate locations should be at the forefront of proposals. Continuity and certainty are fundamental requirements for significant investment and, given the strength of the mandate that the new government has, we would hope that long-term frameworks and plans are put in place.”
He added: “The government has ambitious targets to deliver 1.5m homes over the life of this parliament. These numbers have never been reached in annual terms without significant direct development by government or local authorities. In the expected continued absence of this, the government needs to go beyond the planning system and work in partnership with and financially support the private sector to deliver significant volumes of housing across all tenures.
“This extends beyond the bulk housebuilders to finding ways of enabling viable delivery of affordable and social housing. It should also embrace the growth of the professional rental sector that makes up a significant proportion of housing delivery in Europe and the US and channels new money from pension funds, insurers and retail investors into the UK housing system.”
Colin Brown, head of planning and development at Carter Jonas, said:“The change in tone and narrative from the new Labour government is both welcome and refreshing. However, it is early days for the administration, and we will need to see a lot more detail on how they intend to implement these changes so that delivery is realised on the ground.
“The scale of the challenge is huge – to achieve 1.5m new homes in the new parliament will involve rates of housebuilding not seen for decades, and one cannot simply ‘turn the tap on’ and expect houses to magically appear. The government will need to pull multiple levers and act decisively to secure real transformative change. Central to this will be grappling with the thorny issue of development in green belt locations and addressing the undoubted skills and labour shortages which have the potential to derail their programme.”
Nick Sanderson, chief executive at Audley Group, added: “Labour’s plans to bring back mandatory housebuilding targets and reform the planning system signals the start of change in the housing market. Change that focuses on housebuilding and planning, as Rachel Reeves outlined, but, while welcome, it shouldn’t stop there. The new government must also acknowledge the role of specialist housing and expedite its delivery, including housing that is tailored to our growing older population.
“Only then will we see more homes come to the market as people choose to downsize, leaving family homes available for those further down the ladder. It takes bravery to move away from promises of simply building more and more and instead focus on what needs to be built to make the most difference. I would like to hear more from the government on taking that leap.”
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