Rayn on Rishi's parade

Housing targets increased as new govenment looks to get Britain building again

Although we are not even a month into the new Labour government’s tenure, barely a day has gone by in which there hasn’t been some reference to housing. This is encouraging for those working within the development space and refreshing in contrast to a regime that saw housing issues generally brushed under the carpet.

Whether or not this Labour government succeeds in ‘cracking the enigma code’ of housing remains to be seen, but it is certainly refreshing to see it rise up the agenda following a period which yielded 15 different housing ministers in a 14-year period.

This week's announcement by?Angela Rayner, the Deputy Prime Minister and Secretary of State for Housing, signalled that the Labour Party is squaring up to the challenge of what she termed "the most acute housing crisis in living history."

But, let’s be honest,?we’ve heard that before?– so what’s different about this policy and, perhaps most importantly, can it be delivered?

The draft National Planning Policy Framework (NPPF) announced in the Commons outlines Labour's commitment to build 370,000 homes annually throughout the next parliament – an uptick of 70,000 per year on the Tories; 1-0 Angela?

This target represents a substantial increase from the output of recent years, aiming to tackle?a long-standing shortfall now estimated at 4 million homes.?The introduction of mandatory local housebuilding targets—previously removed under Rishi Sunak's administration—stands as a cornerstone of this plan. This intervention is critical; without it, history has shown that the necessary construction simply does not occur. Notably, two-thirds of local councils currently lack an up-to-date housing plan, highlighting the urgent need for national oversight.

?Ms. Rayner's announcement also hinted at the potential conflicts ahead, as certain regions may balk at the new, "surprising" targets. Yet, the government's resolve to push through these measures marks a significant political commitment, setting up a major battleground for the current parliament; and a battle it shall be. Additionally, the reclassification of underused areas on the outskirts of towns from "green belt" to "grey belt" presents a pragmatic approach to urban expansion, but one which will no doubt go back and forth in the commons as those bedded in the leafy suburbs look to protect their investments and little bit of paradise. And of course, protecting England's scenic landscape is vital, but shielding disused industrial sites does little to address the housing shortage.

However, achieving these ambitious goals will require more than just policy changes. Labour must bolster local authorities with enough planners and ensure a steady supply of skilled construction workers. The challenge of restoring capacity in these areas, after years of underinvestment, cannot be overstated. Furthermore, the reliance on private developers raises questions about the feasibility of achieving adequate levels of affordable and social housing. To ensure these goals are met, properly funded and empowered local governments will be essential.

This renewed approach will, of course, be?bolstered by the announcement of lower interest rates from the BoE, which will instantly be reflected in many savings accounts and floating rate mortgages (which have already began to sing a more optimistic tune.)

We’ll be keeping a keen eye on developments, and of course –?keeping your property universe informed.

Have a great weekend.