Property industry stakeholders react
New chancellor Rachel Reeves (pictured) has outlined Labour’s commitment to constructing 1.5 million homes over the next five years, as promised in the party’s election manifesto.
Reeves detailed several key measures the new government will implement, including reinstating mandatory housebuilding targets.
She also announced that the ban on onshore wind farms will be lifted, and a taskforce will be established to expedite stalled housing projects. Local authorities will receive 300 additional planning officers nationwide to assist in these efforts.
“We will reform the National Planning Policy Framework, consulting on a new growth-focused approach to the planning system before the end of the month, including restoring mandatory housing targets,” Reeves stated in her first speech as chancellor.
“As of today, we are ending the absurd ban on new onshore wind in England. We will also go further and consult on bringing onshore wind back into the Nationally Significant Infrastructure Projects regime, meaning decisions on large developments will be taken nationally not locally.”
Reeves said the government will also reassess previously rejected planning applications that could benefit the economy and focus on developing brownfield and greybelt land to meet housing goals. To ensure the necessary infrastructure is delivered, the planning system will be reformed, with new policy plans for critical infrastructure set to be announced in the coming months.
Reeves emphasised the importance of these initiatives in addressing the nation’s housing crisis and stimulating economic growth. By prioritising brownfield and greybelt land, she said Labour aims to balance development with environmental considerations, while the additional planning officers are expected to streamline the approval process for new housing projects.
Meanwhile, property industry stakeholders welcomed the new government’s commitment to reform the planning system and accelerate growth.
“The commitment to building homes is very welcome,” said Jonathan Stinton, head of intermediary relationships at Coventry Building Society. “But much like a British summer, there’s always the prospect it’ll get rained off.
“It’s very promising to see housebuilding at the forefront of the government’s agenda, and the housebuilding targets are a strong start, but we’ve seen similar targets set and missed before. It’s still early days, but there’s a huge amount of work to be done – and no time to waste – if the chronic undersupply of housing is really going to be addressed.”
“Building more new homes will bring huge economic and social benefits to the UK,” added David Thomas, chief executive of Barratt Developments. “It is vital that local and central government are united with industry to plan positively to deliver high quality new homes and developments across the country.
“The country urgently needs more new homes, of all types and tenures. We look forward to working with the new government to help them build 1.5 million homes across the next parliament, unlocking planning and helping first-time buyers access affordable finance, ultimately helping more families own a high quality, sustainable, new home.”
For Phil Lawford, national account manager at Saffron for Intermediaries, the introduction of mandatory housebuilding targets will go some way to resolving the supply issues which have plagued the housing market in recent years.
“It is important, however, that this burst of announcements is the beginning of a plan that will deliver homes in the long-term, and not just hot air from a government trying to make its mark,” Lawford said.
“What also remains to be seen is whether any targets for the energy efficiency of new homes will be announced, to go alongside today’s policies enabling more housebuilding across the country. The UK’s housing stock is some of the worst in Europe when it comes to energy efficiency, so it would be good to see this recognised in policy in the coming months.”
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