The recent Budget was billed as a moment of truth for the UK’s housing ambitions. With the 1.5 million homes target reaffirmed, many in the industry hoped for a clear plan showing how the country intends to get there. Instead, we saw some welcome steps, but not the level of detail that buyers, brokers, and lenders need as we head into 2026.
And the urgency is clear: homeownership remains a core ambition for millions of young people and demand for quality homes is only set to grow. Delivering more homes isn’t just a numbers exercise, it’s about giving people stability, wellbeing, and a place to call their own.
Progress on planning is welcome – but not enough on its own
One of the more encouraging announcements was the commitment to expand capacity within the planning system. The commitment to bring in 350 additional planners through an expanded graduate scheme and new Planning Careers Hub – taking total new recruits this Parliament to 1,400 – is a step in the right direction. Brokers tell us that slow planning decisions and stalled sites remain major contributors to the lack of new homes coming to market, coming at a time when data reveals that residential construction activity has been found to be at its weakest since the first lockdown during the COVID pandemic. More resource in the system should help speed up decisions, unlock sites, and give builders and lenders greater confidence.
But while this is welcome, recruitment alone won’t deliver new homes. Without wider alignment across planning policy, infrastructure, and local authority capacity, bottlenecks will persist. A planning system that works smoothly is essential if we’re serious about meeting the aspirations of the next generation of buyers, who are already facing fierce competition for too few homes.
Signals of ambition, but not yet a system that gives confidence
The Government has also set out further reforms through large infrastructure legislation. Its New Homes Accelerator and the identification of new town locations is promising. Taken together, these signals show intent. What they lack is the full alignment needed to reassure the market that the target will be met. Without sustained funding for infrastructure, solutions to labour shortages in construction and a clear long term delivery timetable, even newly unlocked sites can still face delays. The danger is that progress remains piecemeal rather than transformational.
The same applies to the Budget’s limited tax changes. Introducing a High Value Council Tax Surcharge on properties worth £2m is set to raise revenue for local services. But, with fewer than 1% of homes being impacted, it’s not expected to shift the housing market or supply more widely. However, its inclusion in a Budget where housing delivery is presented as a priority raises a broader question: If the Government is prepared to introduce new tax measures on high value homes, why is there not an equally bold approach to unlocking the homes the country urgently needs? Tax can shape behaviour, but it cannot replace sustained action on infrastructure, skills, planning consistency, and local authority capacity.
From a lender perspective, the message is clear
We stand ready to support the market. Brokers are still seeing strong demand, particularly from first time buyers, even in a challenging affordability environment. Lenders stand ready to support that demand. But finance can only flow into a housing pipeline that is robust, predictable, and supported by planning and infrastructure. And demand is not going anywhere, as long as homeownership remains a central milestone for so many.
2026 must be the year of clarity
Ultimately, this Budget signals intent but not yet a solution. It offers progress but not the certainty the industry depends on. The UK does not lack ambition, it lacks a co-ordinated roadmap that connects planning, infrastructure, skills, local authority capacity, and long-term funding. The industry stands ready to play its part, but readiness alone cannot deliver the homes the country needs. Only a sustained and aligned strategy will close the gap between commitment and delivery.
Aaron Shinwell is chief lending officer at Nottingham Building Society
