Rachel Reeves has delivered her first speech as Chancellor today (8th July), vowing to promote increased housebuilding and “accelerate stalled housing sites.”
In line with Labour’s commitment to build more than 1.5 million new homes this Parliamentary term, Reeves said that the Government aims to get “Britain building again” by reinstating mandatory housing targets.
The Chancellor also set out plans for planning reform, stating that the Government would support local planning offices by increasing personnel, reassessing previously denied applications, and prioritise brownfield sites for increased development.
Reaction:
Phil Lawford, national account manager at Saffron for Intermediaries:
“It is great to hear from our Chancellor that planning reform is a priority for the new Government, and 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.
“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.
“At Saffron, we believe that the government and industry should also be encouraging alternative routes to homeownership, in order to support the housebuilding targets announced by the Chancellor today.
“Self- and custom-build can provide a more economical way for those looking to buy to get on the housing ladder, and delivers homes that are greener, and offer greater flexibility in terms of location and design than buying an existing property.”
Nathan Emerson, CEO of Propertymark:
“It is encouraging to see that the new UK Government is committed to reforming the planning system and delivering thousands of new affordable homes each year.
“Propertymark is keen to see a diverse mix of housing delivered that keeps pace with real-world demand.
“Fine details about reform to the National Policy Planning Framework must be mapped out and open to full stakeholder scrutiny.
“It’s crucial there is transparency on how they intend to meet their ambitious target of building 1.5 million new homes by the end of its term in Government, which in reality would mean having a large housing estate built every day before the next General Election.
“Whilst we support more homes being constructed, there needs to be careful consideration on background infrastructure to ensure we are making the best use of available land, ideally prioritising a brownfield-first approach.”
Michelle Walsh, head of intermediaries at Together:
“Reeves’ first major speech set out the initial steps for housing with 14,000 new homes spread out across England.
“It may be early days but should they restore mandatory housing targets, we should still see the property market remaining stable and even improving, but to achieve such ambitious numbers there needs to be real change.
“Relaxing planning restrictions and reviewing the greenbelt to address brownfield land and develop the less attractive ‘grey belt of Britain’ via the new draft National Planning Policy Framework in August will help remove red tape to unlock greater opportunities for developers, and in turn homebuyers.
“A commitment to get Britain Building, deliver on infrastructure and housing is positive, however only time will tell how much this new Government will be able to bolster significant growth in the UK economy.”
