As the formalities of a new government play out, the housebuilding industry continues to react to the news of Keir Starmer taking the reigns as Prime Minister and a Labour government being formed.
Labour wins General Election with landslide victory
Wayne Douglas, managing director at City & Country, said: “The Labour government now must start delivering on its promises and take responsibility for building homes. This country in the past has suffered from nimbyism when it’s proven that new development creates sustainable places and supports communities, whether that’s through job creation, improved connectivity, community investment to support economic growth whilst re-energising existing and new towns and cities.”
“What is immediately obvious is the urgent need for an evolution in the way planning is dealt with and it needs to happen quickly. The proposed housing plans to require councils to build on the ‘grey belt’ and utilise brownfield sites is a step in the right direction to unlocking housing delivery and hitting those housing targets this country so desperately needs. Now, Keir Starmer needs to turn Labour’s promises into policies and give the UK timescales on when this will be implemented not ‘if’.”
Justin Young, CEO of the Royal Institution of Chartered Surveyors, said: “On behalf of the Royal Institution of Chartered Surveyors, I am delighted to congratulate Labour on their election win. As Labour prepare to appoint ministers in the coming days and look to department structures, it’s vital that they bestow an urgency to translate the plethora of promises made over the last five weeks into sound and workable policy.”
“Labour’s ambitions are bold, but by pulling the right policy levers, they can be achievable. Delivering 1.5 million homes over a five-year period will be no easy feat. To achieve this, the public and private sectors would be required to deliver 300,000 new homes a year – a figure not hit since the 1960s, which was a time when local councils played a far greater role in housing delivery.”
“Therefore, policymakers must introduce in a timely manner a programme of policies that speed up development and add significant resource to planning departments up and down the country. This will be particularly pertinent in Labour’s quest to achieve economic growth; many studies have agreed on the positive correlation between GDP growth and the availability of homes. If housing delivery is backloaded towards the end of parliament, then the electorate may not see benefits quickly enough.”
James Dickens, managing director of Wavensmere Homes, said: “From an apolitical standpoint, it is positive to see a moderate party elected with such a strong mandate, which should provide the ability to deliver change, alongside much-needed political stability.
“After 14 years of the Conservatives in No.10, this new Labour administration has promised sweeping reforms to the planning system and a reintroduction of mandatory local housing targets. Indeed, during Sir Keir, Angela Rayner, and Chancellor of the Exchequer Rachel Reeves’ recent visits to our live sites, we were reassured that a planning overhaul would be central to Labour’s economic policies. Hiring 300 additional planners to help expedite decisions will be a small step in the right direction, but many more policy and legislative changes are required to address the chronic lack of supply of new homes.”
Lynda Clark, editor of First Time Buyer Magazine, said: “Housing has become a major focus in this election’s debate, more so than in recent years. Indicative polls over the last few weeks showed that first-time buyers are optimistic about the changes that a Labour government will bring to a tough housing market. They are right to hope for better – house prices are high, yanking up deposits behind them, while mortgage rates linger at around 5%, making it hard to borrow. Labour’s plans to address the housing crisis through an accelerated housebuilding programme will lead to better housing options for buyers, and first-time buyers will be supported by the extended mortgage guarantee scheme. Existing initiatives including shared ownership, Rent to Buy and London Living Rent remain available, and with greater backing from a new government these will continue to help thousands of first-time buyers each year escape the rental trap and get on the property ladder.”
Kate Faulkner OBE, property expert, commented: “A better housing market for us all requires the party in power to take time to understand how to deliver housing for all – just tackling one problem in one sector at a time will fail. For me, there are four things a new government needs to commit to if it really wants to make a difference”
“We need a commitment that those who work in housing, from ministers to civil servants, will remain in their posts for a minimum of five years. Chopping and changing those ‘in charge’ is a key reason why the housing crisis has not been addressed as much as it could have been.”
“New housing teams would really benefit from reading the Nationwide Foundation ‘Homes for All’ paper. The recommendations outlined in this document offer a long-term solution to tackle housing problems, which can only be achieved by enlisting cross-party and industry support.”
“For an easy win within the first 100 days, the government could support the implementation of the key recommendations of the Home Buying and Selling Council, of which I am the chair. We offer a cross-section of easy fix solutions which would immediately improve buying and selling a home, while others will revolutionise the process for everyone over the next five years.”
“Finally, I would like to see MPs, of all parties, tasked with submitting a plan on how they will work with their local public and private housing and land providers. Critical is how to house those in temporary accommodation within their constituencies and how we can deliver more social homes to reduce local housing waiting lists by releasing land and funding. This alone will unlock over one million homes back into the private sector, helping first-time buyers onto the property ladder and alleviating supply issues for those renting privately.”
Richard Harrison, head of mortgages at Atom Bank, commented: “A general election always brings with it a sense of uncertainty, so it’s welcome to have such a definitive result. The size of the majority should allow the new government to push on with addressing some of the issues faced by the property market. There’s no question that we aren’t building enough homes to meet demand, so addressing the planning system will be crucial. In addition, I’d like to see time given to whoever is appointed housing minister, given the way it has been a revolving door in recent years – the outgoing Lee Rowley was the 15th housing minister since 2010.”
“It will also be interesting to see the details of the Freedom to Buy permanent mortgage guarantee scheme promised in the Labour Party manifesto, aimed at supporting borrowers with small deposits. Atom bank has long championed these buyers, with a focus on flexible criteria and competitive rates at 95% LTV, so we welcome the prospect of more options for these borrowers.”
“More than anything, I think the mortgage sector will relish some stability. The ongoing uncertainty of the last few years has taken a toll on borrowers, who today face higher interest rates when their finances are already stretched. Some economic calm, and the prospect of base rate cuts in the months ahead, will be welcome.”
Ian Jones, CEO of Backhouse, said: “Regardless of your political preference, this morning’s result now provides some clarity and reduces the level of uncertainty that has plagued the housing market for some considerable time.”
“Whilst a new “Help to Buy” scheme would have some benefits, focussing on demand side incentives without tackling the route causes that are inhibiting the supply of housing would simply drive house prices up further.”
“It is undeniable the importance PLCs play in housing delivery, but the ever-increasing size and power of these organisations to the detriment and diminishing number of SMEs will damage consumer choice and supply chain survival. We have seen in the last 40 years, SME housing delivery reduce from 40% of total new housing down to 10% and this trend is continuing.”
“I hope that Labour will act quickly and focus on dealing with the core issues to help unlock much-needed housing and support SMEs as a fundamental part of that delivery process.”
Bjorn Howard, group CEO at Aster Group, said: “It’s clear our country faces an acute housing shortage. We need a greater range of homes delivered at pace. It’s clear this new Labour government recognises the importance of building more new affordable and social rent homes, and quickly. We remain committed to helping inform the forecasted changes the new government plans to inject to make building more homes possible, especially around the planning system.”
“For our sector to have effective longer-term financial plans in place which meet the evolving needs of our customers, we need certainty and stability in areas like social rents. This allows us to focus on delivering safe, secure and comfortable homes and good customer service in a sustainable way.”
“Housing associations have long been a crucial partner in enacting governments’ ambitions for housing – the same will certainly be true for an administration seeking to achieve the largest increase in social and affordable housing in a generation.”
Mike Sambrook of SME housebuilder, SJ Roberts Homes, said:
“With a clear mandate from across the UK, Labour must now act quickly to demonstrate the positive changes that they’ll make, and in housing, this must come via ministerial stability so that demonstrable change is delivered by a consistent team.”
“I’d like to see a strong, workable replacement for Help to Buy so that first-time buyers are supported onto the property ladder. The proposed Freedom to Buy scheme currently appears little more than a permanent mortgage guarantee scheme, which experience has demonstrated to be unpopular amongst lenders and unlikely, therefore, to have the impact that Labour anticipates.”
“In planning, a local focus is imperative and whilst a pledge to fund additional planning officers should be welcomed, the proof will really be in an expedited overall process. Labour’s pledge, however, to prioritise planning to aesthetically appealing development should be applauded, and I’ll look forward to seeing more developments given the attention to detail that we’ve employed at Allscott Meads.”
“Finally, I’d like to see greater policing of the market so that a fairer, more level playing field for all developers, regardless of their size, is realised. This will enable them to deliver the homes that are needed in the communities where they’ll have most impact.”
