Leading built environment figures have hailed “a new dawn” for the UK and welcomed the prospect of greater clarity, stability and confidence following Labour’s landslide election victory.
With just a couple of seats left to declare, Labour was on course midday on Friday 5 July for a majority of 174 having taken 412 seats, up 211 on the last election, while the Conservatives were reeling from their worst result in history, having lost 250 seats to win just 121.
Many industry leaders expressed relief that the outcome of the election was as expected and called on the new administration to deliver swiftly on its manifesto pledges to reform planning, deliver more housing and “get Britain building again”.
Echoing Tony Blair’s reference to “a new dawn” following his 1997 victory, Places for People chief executive Greg Reed said: “Today marks a new dawn for our country, hopefully bringing a stability that communities and industries across the UK have craved. The new government must now put words into action and deliver the transformative national change it promised during its successful campaign. So much leads back to a lack of vital housing and Labour’s pledge to turbocharge housebuilding and invest in healthy communities is very welcome.”
Justin Young, CEO of the Royal Institution of Chartered Surveyors, congratulated the Labour Party on its election win and said it was vital the party urgently translated the “plethora of promises” made during the election campaign into sound and workable policies.
“Labour’s ambitions are bold, but by pulling the right policy levers, they can be achievable,” he added. “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.”
Landsec CEO Mark Allan said his message to the new government was the company was ready to get Britain building again.
“We’ve set out the targeted reforms required to help us unlock the growth the country needs and hope to see these brought forward in the coming weeks,” said Allan. “Alongside these reforms, it’s important the prime minister also understands the need to provide stability. Stability of leadership. Stability of strategy. Stability of regulation.
“With these in place, we will not only be able to unlock economic growth, but also deliver beyond growth – whether that is shaping safer, thriving high streets, driving towards net zero or spreading opportunity around the country.”
Scott Parsons, chief operating officer UK at Unibail-Rodamco-Westfield, described the election result as an “exciting moment” for the country and “an opportunity to refresh the relationship between business and government and how they work together to deliver for communities. When it comes to the retail sector, we have two top asks for the new Labour government. The first is to do what no previous government has been able to achieve and reform business rates once and for all, and the second is to abolish tourist tax”.
Knight Frank’s group chair William Beardmore-Gray said he hoped the election result would end the long period of political uncertainty which has negatively impacted the real estate sector. He added one of the major challenges facing the government was the nation’s deepening housing crisis.
“Demand from buyers should strengthen as mortgage rates fall, but the new government also needs to play its part by making ambitious changes to the planning system,” said Beardmore-Gray. “This should be through immediately reinstating housebuilding targets, recruiting more planning officers to increase capacity and reduce delays and strengthening rules around designating sites for new towns and housing of all tenures. Meaningful support for first-time buyers should also be a priority.”
Nick Walkley, principal and UK president at Avison Young, also highlighted housing as a major issue for the new government.
“To get land ready for building and boost affordable housing, Labour needs a revamped approach to capturing land value. This calls for collaboration among local authorities and stakeholders. Big housing projects take time, even when everyone’s on board. Labour wants to speed things up by streamlining how funding is approved, especially by involving private companies. They also plan to make compulsory purchase orders quicker and easier, so they can start building sooner. It’s a balancing act: Labour wants to solve the housing crisis fast, but large projects come with delays,” said Walkley.
Etienne Prongué, CEO, UK at BNP Paribas Real Estate, said the election result was an opportunity to draw a line following years of turmoil and deliver long-term certainty.
“The UK economy is now in a better position to benefit from the looming normalisation of monetary policy and inflation,” he added. “Arguably, there has long been a recognition that UK assets are discounted relative to other markets, but that political uncertainty and anaemic growth meant this was justified. Now, household incomes are rising, the short-lived recession is behind us, and business confidence is improving. In turn, the tone of my discussions with clients is noticeably more upbeat. Investors can see the dislocation between real estate pricing and the leasing market fundamentals and are encouraged by lead indicators pointing in the right direction.”
Speaking outside Downing Street following his party’s victory, new UK prime minister Sir Keir Starmer alluded several times to the need to “rebuild” Britain. “Brick by brick, we will rebuild the infrastructure of opportunity, the world class schools and colleges, the affordable homes that I know are the ingredients of hope for working people,” he said, adding: “The work of change begins immediately, but have no doubt, we will rebuild Britain.”
Starmer also stressed the need for urgent change, ending his speech by saying: “You have given us a clear mandate, and we will use it to deliver change, to restore service and respect to politics, end the era of noisy performance, tread more lightly on your lives and unite our country. Four nations standing together again, facing down, as we have so often in our past, the challenges of an insecure world, committed to a calm and patient rebuilding. So, with respect and humility, I invite you all to join this government of service, in the mission of national renewal. Our work is urgent, and we begin it today.”
However, incoming chancellor of the exchequer Rachel Reeves sounded a note of caution over the state of the economy. “There’s not a huge amount of money there,” Reeves told the BBC. “I know the scale of the challenge I inherit.”
A number of big-name Tories lost their seats including former prime minister Liz Truss, Commons leader Penny Mordaunt and former cabinet minister Sir Jacob Rees-Mogg.
Following his defeat, Rishi Sunak announced he would be standing down as the Conservative party leader. “To the country I would like to say first and foremost I am sorry,” he said. “I have given this job my all, but you have sent a clear message that the government of the UK must change, and yours is the judgement that matters. I have heard your anger, your disappointment, and I take responsibility for this loss.”
Industry reaction
Marc Vlessing
Chair and founder, Pocket Living
“Labour’s landslide victory can be the catalyst for a radical reset of the UK’s ailing housing sector. Only through a return to successful public-private partnerships and bold new government-led delivery vehicles can the country’s biggest problem be solved. Without this, millions will see their lives blighted for decades to come.”
Charles Begley
Chief executive, London Property Alliance
“We look forward to working with the new government, which has rightly put economic growth at the heart of its agenda and recognised London’s crucial role in this. We now have a golden opportunity for national and London governments to work in partnership with business to deliver homes and jobs, and attract investment to develop world class, sustainable workspaces so global corporates and innovative starts-up make London their city of choice. Reforming the planning system is particularly important to unlocking growth. But if the new government has the determination to see through its vision where others have faltered, it can transform the economy and safeguard London’s global city status, and the benefits that brings, for the next generation and beyond.”
Josh Bullard
Divisional director, smart energy and sustainability, Hydrock, now Stantec
“If Starmer is serious about achieving net zero by 2030, then he must prioritise capturing and distributing Scotland’s renewable energy more effectively than previous governments. This demands significant long-term investment and planning, which cannot be delayed any longer. The formation of Great British Energy is hopefully the first stepping stone in this process.”
Jo Davis
Principal and UK executive chair, Avison Young
“The proposed planning reform aims to kickstart housebuilding with the housing recovery plan, promising a swift implementation. Balancing residential growth in urban brownfield and grey belt areas whilst creating quality and resilience places with industrial and economic needs is crucial. Last-mile logistics are increasingly vital, yet industrial projects often lose out to housing in urban fringes. Strategic planning is essential, integrating housing with necessary infrastructure like retail, logistics, health and overriding requirement for power to meet modern consumer demands effectively.”
Lawrence Turner
Director, Boyer
“With the dawn of a new Labour government, there appears to be a renewed sense of optimism within the industry that we can take significant steps towards addressing the housing crisis. Labour’s landslide victory provides them with the political capital needed to push through the ambitious housing policies outlined in their manifesto. Labour’s pledge to immediately update the National Planning Policy Framework and invest in local planning authorities is a promising sign that they are serious about supporting and enabling sustainable development. A properly funded and resourced planning system is crucial in ensuring that new homes are delivered efficiently and in the right locations.”
Ian Barnett
National land director, Leaders Romans Group
“My understanding is that Labour plans to hit the ground running, with a ministerial statement on the NPPF ready to be issued as early as next week. This would probably revert to the pre-December 2023 NPPF – reinstating housing targets, putting the five-year land supply in place for all local authorities irrespective of the status of their local plan status, and increasing the requirement for all local authorities to have a current plan. More significant planning reform is likely to follow. I am enthusiastic that an element of regional strategic planning will be reintroduced, as it was it was by the last Labour administration.”
Colin Brown
Head of planning and development, Carter Jonas
“Labour has made it clear that a more strategic approach will be taken to the selective release of the green belt. In our view, this is the correct approach to take, especially having regard to the fact that many green belt locations are those where housing affordability is at or beyond crisis levels. But it remains to be seen exactly how land might be categorised as ‘grey belt’ and we suspect there will be rather more nuance than simply distinguishing beyond what is ‘green’ or ‘grey’.”
Ryan Etchells
Chief commercial officer, Together
“We want to see a radical overhaul of the broken planning system to speed up town hall decision-making by removing red tape and unlocking opportunities for developers. There needs to be real incentives for SME housebuilders to create quality, modern and affordable homes in the right places to boost local economies. Building on brownfield land needs to be a major focus, alongside redeveloping some of the 1.55 million properties in England and Wales that sit abandoned and derelict. Together’s own research shows this could deliver over £500bn of much-needed housing.”
Stephen Cowperthwaite
Principal and managing director Liverpool, Avison Young
“Labour’s proposals on devolution and local authority funding bring welcome attention to critical issues, but specific details are crucial for meaningful impact. The omission of plans to address section 114 notices and the tight fiscal rules raise concerns about how effectively local financial stability will be restored. While collaboration with the private sector for housing delivery is encouraged, the expertise gap within local governments presents a barrier. There’s an opportunity for the private sector to facilitate these partnerships and bridge this divide, ensuring stability and consistency for investors.”
Will Matthews
Head of commercial research, Knight Frank
“Labour wants to streamline the planning system, admittedly with a focus on housing, rather than commercial real estate. The addition of one planning officer per local authority may not move the dial too far, but at least signals intent. The ultimate objective is to unlock more private sector capital, with UK pension funds and insurance companies seen as potential sources of capital for domestic investment, be that in UK PLC, or long term infrastructure projects. This is not a new idea, but one that if implemented well, offers significant promise.”
Matthew Robertson
Co-founder and CFO, Valouran
“A lack of planning resource has held the property industry back ever since the austerity measures were introduced post the great financial crisis. It is encouraging to read of Labour’s planned recruitment drive for an additional 300 planning officers, but with the mandate they have received from the electorate, I would encourage them to be more bold and ambitious, and to push through their plans to release lower quality green belt land. Only by doing so will they have a chance of making good on their target of building 1.5 million homes over the course of this parliament.”
Rick de Blaby
Chief executive, Get Living
“Today’s general election result has provided some much-needed clarity after a very uncertain political period. Now we quite simply need to get going. We know it’s impossible to solve the country’s problems overnight, but as we find ourselves in the midst of a nationwide housing crisis where new homes of all tenures are badly needed, what we urgently need is a grand vision and a comprehensive plan to fix this crisis, which recognises development as a force for good and enables us to attract the capital required to build.”
Christian Pittard
Head of closed-ended funds and managing director, corporate finance, abrdn
“The new government must urgently look at fixing the cost disclosure rules which are holding back the UK’s closed end fund sector. There’s nothing to lose and everything to gain, coming at zero cost to the public purse while boosting investor confidence and investment in the UK. Closed-end funds provide a critical source of capital for those large-scale real estate, specialist equity, infrastructure and renewable energy projects that, political consensus agrees, are needed to power the nation’s growth.”
Barry Jessup
Managing director, Socius
“With a significant majority, there are some easy, quick wins for Labour if they want to ‘back the builders’ and get the economy moving quickly. First, they could increase the share of business rates retained by authorities for the first five years, say from 50% to 75%, to create another incentive to bring forward commercial development whilst also supporting local services. Next, they can accelerate the regeneration of town and city centres by introducing a period of permitted development rights for obsolete offices to residential, but only if they are rented and professionally operated for a minimum of 10 years. This would create more dynamic communities than homes for sale and help attract the next generation of talent to work and live in town and city centres. Finally, shifting CIL and S106 payments to the end rather than beginning of developments could improve developer cashflow and ensure fewer projects stall at an early stage.”
Olivia Harris
Chief executive, Dolphin Living
“The lack of genuinely affordable homes for the UK’s workers is an increasingly pressing issue that has been ignored by successive governments. According to statistics from the Resolution Foundation, housing costs now represent a significant and growing portion of household expenditure, with the average private renter dedicating approximately a third (33.8%) of their income to housing costs. Those on median incomes and below – primarily our key workers – have been disproportionately affected by the escalating costs. These workers are critical to the success of the country but are left struggling to afford to live within a reasonable commute of their workplace. Without intervention from the next government, cities like London could face an exodus of key workers. There is also the potential for increasing numbers of households to find themselves experiencing homeless and so increase the temporary accommodation burden on local authorities as well as experience the negative social impacts of homelessness.”
Mark Chick
Director, Association of Leasehold Enfranchisement Practitioners
“So now that we know the size of the Labour majority it seems a fairly safe bet that the next five years will see a more vigorous programme of reform in the residential leasehold sector. During the next five years we are likely to see the acceleration of commonhold and possibly legislation to end or put a sunset date on leasehold for new properties. It will be interesting to see what Labour chooses to do with the Commonhold project and I expect we will now find out what other drafting has been done by DLUHC in relation to the law commission’s original reports and recommendations. In addition we can presumably expect the current reforms in the Leasehold and Freehold Reform Act 2024 to be brought into effect and the question now turns to the timing of these and secondary legislation.”
Allan Wright
Managing director, Civils & Lintels
“Labour’s win makes it imperative that they now act quickly to deliver on their campaign promises. A pledge to deliver 1.5 million new homes over the next parliament is absolutely to be applauded but will only mean anything once it comes to fruition. Having built long-term partnerships with both our housebuilding clients and our supply chain we very much look forward to playing our part in the delivery of these new homes to the nation over the course of the next five years.”
Mike Sambrook
SJ Roberts Homes
“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.”
Mark White
Managing director, Bargate Homes
“With Sir Keir Starmer being tasked with leading the new government, the SME housebuilding community will be looking for swift detail and action, as there is so much to do to reverse the damage done by Michael Gove. How bold is Labour prepared to be to enact on its manifesto promises? Reintroducing top down housing targets, turning the clock back on the NPPF changes that have been so catastrophic for housing delivery, and large scale planning reform, should be amongst the first three priorities.”
Craig Sheach
Partner, PRP
“Labour has promised to deliver 1.5 million houses over their term and to fix the planning system to fulfil this pledge. It’s the right sentiment, but we have to ask ourselves—how? There are so many headwinds right now to the delivery of homes. Construction cost inflation, low consumer confidence, squeezed personal budgets, and high mortgage rates will only improve by strengthening the economy.”
Derek Horrocks
Chair of the National Home Decarbonisation Group and owner of Sustainable Building Services (UK)
“Despite a change in political power, the task at hand when it comes to housing decarbonisation is one that spans party borders, so the NHDG is looking forward to continuing our work with key government departments including DESNZ under the new Labour government. Our core aim will be to significantly build on the momentum developed over recent years in the retrofit decarbonisation sector, taking learnings and action forward from ongoing funding programmes and policies and applying them to the large-scale growth for the sector promised in Labours’ manifesto.”
James Needham
Director, Alesco
“As a general observation, the past three elections have resulted in a significant boost in property prices immediately afterward. The primary factor driving this trend is the stability provided by having a government securely in place for the next five years. This assurance fosters confidence, reduces concerns about political unrest, and promotes a consistent policy-making environment.”
John Webber
Head of business rates, Colliers
“Given the size of the landslide victory, there should be no excuse for the Labour party to avoid addressing the business rates problem or to introduce significant reform. We urge reform, as opposed to abolition, to ensure local authorities continue to receive the stable funding they need. We will continue our lobbying role to try and persuade the new administration to create a fair property tax that is affordable, transparent and easy to administer, encouraging businesses to expand and invest rather than downsize or even close down their bricks-and-mortar estates.”
Lucy Wood
UK&I climate solutions leader, Stantec
“Following the election, it’s vital that as a country we continue to focus on the economic benefits of decarbonising the economy. Whether it’s through new jobs and growth, or becoming a pioneer and incubator of emerging and developing technologies to benefit the world, there is so much to be gained by leading the charge. We need to keep the foot on the accelerator. We need to see the new government follow through on commitments to strengthening the renewable energy sector, particularly in wind and solar. But we must urgently address the consenting and grid obstacles that are delaying projects from coming online.”
Andy Hulme
Chief executive, The Hyde Group
“After the challenges of the last few years and the political uncertainty that has accompanied much of it, it’s welcome to see a government with a clear manifesto commitment to deliver the biggest increase in social and affordable house building in a generation. There have been some positive remarks about housing featuring in the early priorities of the government, a commitment to ‘deeds, not words’, so the sector will eagerly await more detail on what implementing these positive proposals will mean.”
John Glenton
Executive director of care and support, Riverside
“The new government needs to take an invest to save approach if we are to ease the housing crisis and be successful in reducing homelessness and rough sleeping. As the economy grows, the provision of social and affordable housing must become a top spending priority. For too long housing has not had the priority it deserves. To tackle the housing crisis, we need the government and providers to work together to create a long-term plan for housing, prevent homelessness and shape a fairer welfare system.”
Craig Carson
Managing director, Barratt West London
“The prioritisation of brownfield and the new grey belt land will help unlock large swathes of land for development, including former car parks and commercial units. This will be particularly beneficial in the outer boroughs of London such as Barnet, Harrow, Ealing, Newham and Brent, alongside more central locations such as Southwark, ensuring developers can accelerate build programmes and deliver much-needed high quality, sustainable homes for Londoners. It is vital that the new government works with the mayor to create a pro-development environment and offer support to first time buyers and young families to be able to get a foot on the ladder in the capital.”
Brendan Geraghty
CEO, Association for Rental Living
“As the representative body for the institutionally backed, professionally managed rental living sector, the ARL welcomes Labour’s manifesto pledges to take swift action to address key housing issues including building more homes and recruiting new planning officers. However, the severe lack of high-quality rental homes across the UK is a key factor in the housing crisis, driving up rental levels as demand outstrips supply. The ARL calls for policies that enable homes of all tenures to be delivered at scale and pace.”
James Dickens
Managing director, Wavensmere Homes
“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.”
James Blakey
Planning director, Moda Group
“The new government needs to more fully recognise the distinction between traditional private rental and institutionally funded, professionally managed rental homes and neighbourhoods. The opportunity to deliver high quality BTR homes at scale and at pace is huge. The UK’s renters deserve safe, secure homes and the BTR sector is ready to deliver, provided it’s not inhibited by restrictive policies with unintended consequences. Our immediate priority will be to work closely with our political stakeholders to shape housing policy in a way that supports investment, growth and long-term environmental and social benefits for our communities.”
Fons van Dorst
UK managing director, EDGE
“A change of government is a welcome sign, not only for the real estate sector but also for economics on the world stage. We’ve sat in a holding pattern for too long, but now this fresh injection of policies will grant the UK some buying power. We predict a positive domino effect to fall into place, starting with better policies around the planning system.”
Matthew Kennedy
Managing director, Norman Rourke Pryme
“The next government will play a crucial role in addressing the challenges our cities, towns, and villages face due to increasing urbanisation and the impact of climate change. Issues such as safety, air quality, and the transition to net zero, which affect our daily lives, can be tackled through systematic investment in infrastructure and transport. However, it is also crucial that the government allocates resources to develop a sustainable skills base for the next generation of engineers, project managers, quantity surveyors, and transport professionals to deliver its ambitions on time, within budget, and to a high standard.”
Robert Sloss
CEO, HUB
“Every new government gives the same rhetoric about boosting housing supply, but in reality, little changes. Planning inefficiencies, new building regulations, Nimbyism and viability all serve to constrain supply and perpetuate the UK’s housing shortage. The new government must put words into action to increase the supply of much needed homes and address the climate emergency, starting with ruling out rent controls and fast-tracking proposals to repurpose buildings. Supporting continued investment into the sector will be crucial on both fronts.”
Nicholas Gray
Sales and marketing director, Native Land
“Typically, around the time of an election there are high levels of uncertainty that tends to cause nervousness in the market, however as the outcome has been long predicted, the new Labour government has already been priced into the London residential market. Whilst part of the residential market saw buyers postpone plans due to a combination of high interest rates and political uncertainty, the top end of the market has continued to operate business as usual, as we’ve seen continued strong performance across our schemes. The long-term prosperity of the prime residential market is difficult to predict with potential new rules being introduced for foreign buyers. Despite this, domestic buyers still recognise the UK as a safe haven for investment and with this new government we look forward to further market stability.”
John Gravett
Managing director, Cluttons
“Business rates continue to be an unknown area which is concerning as the Labour Party is seeking to ‘breathe new life’ into the high streets. However, no clarity has been provided on proposed policies that on the one hand generate £30bn in tax revenue, but to a property owner/occupier is a significant operational cost burden. Nonetheless, a clear five-year mandate and an improving economic outlook is encouraging after the headwinds of the previous six years.”
John Hartley
CEO, Levidian
“John Hartley said: “We welcome the election of a government which has put green growth at the centre of its plans. Now is the time to unleash UK climate technology as we build GB Energy, deploy new infrastructure and use this expertise to support at scale and create millions of green jobs. We need more diverse bets on UK climate tech to ensure robust growth, job creation, and increased tax revenues.”
Claire Petricca-Riding
Head of planning and environment, Irwin Mitchell
“We expect there to be immediate changes to the planning system which will allow for some flexibility at an early stage in the first year. This includes changes to the NPPF and NPPG. The re-introduction to mandatory housing targets which will enable confidence in the market and contribute to the 1.5 million homes which are said to be developed in the next parliament. There will be amendments to the green belt policy which could see the easing of VSC and exceptional circumstances requirements for those areas which were previous developed and considered the ‘grey belt’. It is hoped there will be additional funding for local planning authorities to bring forward local plans and developments – funding more planning officers to unlock the current constraints in the planning system.”
Philip Campbell
Commercial director, MEPC Milton Park
“With the results in, we welcome the renewed confidence and stability the sector will have in the wake of the election. The new Labour government has made bold commitments to continue to support the UK’s science and tech capabilities. We want to work closely in partnership with Peter Kyle and his team going forward, to realise the built environment’s potential in unlocking economic growth.”
Iain Murray
Head of operational living, Bidwells
“Labour has seemed to be more willing to engage with the living sector, which is promising. The professionalisation of the sector to deliver exceptional rental living homes can be harnessed to support economic development in some of the UK’s strongest employers and industries through the delivery of flexible, professionally managed, environmentally conscious homes to facilitate high productivity across the whole of the UK. To address a yawning supply gap, our new government should create a favourable environment for institutional capital to re-enter the sector. It should also resist misguided calls for rent controls, which have been proven to deter investment, slow supply and will only entrench the housing crisis.”
Paresh Raja
CEO, Market Financial Solutions
“There are enough signs to suggest the market is ready for a post-election uptick in activity. The number of homes coming onto the market in the first half of 2024 is 22.9% higher than last year, while economists are still predicting that the Bank of England will cut the base rate twice before the end of the year, with the first potentially coming on 1 August. But, despite these reasons for optimism, there is clearly no room for complacency. Political and economic turbulence remains, so lenders have to focus on supporting brokers and borrowers as best they can. Optionality and flexibility will be key in the second half of this year, and lenders have to commit to providing borrowers with the financial products they need to both benefit from any opportunities that a potentially more stable climate could provide.”
Jatin Ondhia
CEO, Shojin
“Labour has work to do: interest rates remain high, the cost-of-living crisis has left a toll on people’s spending power, and economic growth needs to turbo-charging. However, following a rather tumultuous end to the Conservatives’ 14 years in power, the UK now has a chance to reposition itself, building strong international partnerships and attracting global investments. Labour’s plans to reform the planning system and pave the way for affordable house building present significant opportunities for greater investment into property development, but the effective implementation of their promised reforms will be key.”
Nicholas Harris
Chief executive, Stonewater
“This will be the first Labour government since Stonewater’s formation in 2015. While their manifesto demonstrated a cautious path, I am looking forward to seeing whether the new government can deliver on pledges to build more social and affordable homes. We know this will take a concerted effort between government, local authorities and providers across the sector and we look forward to working towards our vision for everyone having the opportunity to have a place that they can call home.”
Sean Keyes
CEO, Sutcliffe
“When the Labour Party published its manifesto I was pleased to see it was very pro-business, so to see a Labour government come to power is promising. By delivering a stable economy, we can now focus on what we do best: building more homes to meet demand, something the new Prime Minister promised throughout his campaign. Sir Keir Starmer’s first 100 days in power will be crucial for holding him to account on his promise of surpassing the current house-building levels, something I am eager to support. This period also provides an essential opportunity to assess his plans for constructing more hospitals and refurbishing existing ones, ensuring they are fit for purpose and serve our future generations.”
Dave Dargan
Co-founder and CEO, Starship
“Now that we have a much more stable government in place, I welcome Labour and Sir Keir Starmer’s victory. I believe this newfound assuredness in the government will increase market confidence, boost investment and, as the new prime minister promised in his manifesto, ‘get Britain building again’. That said, I will hold him to account on Labour’s plan to build over 1.5 million homes over the next parliament as I think this could define his premiership. All businesses thrive on financial stability and a growing economy, so I hope that the new government can put its pro-business plans into practice, with the construction industry having a key part to play in its success.”
Tom Lloyd-Jones
Chief investment officer, Zenzic Capital
“I hope that Labour will look at encouraging as much private investment as possible to create an attractive environment for the vast capital requirements needed to finance home delivery. In our view, SME homebuilders have significant untapped capacity. Smaller homebuilders have suffered from a lack of institutional capital in recent years but we have noted that UK pension funds have started to directly fund investment strategies targeting the construction of new houses in the UK. This is to be welcomed and may increase with encouragement from central government.”
Will Edmonds
Partner, Montagu Evans
“For an industry that thrives on longer-term certainty, the strength of the new government’s majority and the significance it places on housing and planning are noteworthy. We should expect – and welcome – a new NPPF and ministerial statements, the revisiting of regional planning, reintroduction of housing targets and mandatory review of the green belt. This won’t be a carte blanche, but it should help free up the system and mean more homes can be delivered where they are needed most, brownfield first and where the required infrastructure either already exists or can be quicky delivered.”
William Nichols
Regional director, Lanpro
“We understand that some changes to the NPPF will be made imminently, reverting the planning policy document to its pre-December 2023 form, but other more comprehensive changes may take longer. We look forward to seeing progress on the changes outlined in Labour’s manifesto, notably reviewing the governance arrangements for combined authorities to unblock decision making, a continuation and de-intensification of the ‘brownfield first approach’, and a more strategic approach to green belt designation. The planning and development sector has an important role to play in in kickstarting economic growth, as the new government’s manifesto recognises. We look forward to being part of this.
Mark Perry
Chief executive, VIVID
“The new government is a chance to renew our efforts to tackle the housing crisis. With 1.3 million people unable to afford the home they need, and nearly 150,000 children living in temporary housing, we’re hoping to see a step change in policy with some reforms introduced at pace. We particularly welcome the Labour’s commitment to build 1.5 million new homes. It’s important that changes are properly informed and shaped by the experience of social housing providers, so we’re ready to engage with the Labour team and help make a real difference.”
Mark Buddle
Partner, Bidwells
“Labour’s pledges to restore mandatory housebuilding targets and open up parts of the green belt for development would undoubtedly resemble positive steps towards fixing Britain’s dysfunctional housing system. Ultimately though, the proof will be in the pudding whether our new government can convert its promising rhetoric into action. Doing so is vital, not just for the future of the housing market, but for the nation’s economic productivity as a whole.”
John Downes
Group chief executive, Langtree
“The knowledge economy is a huge priority around the world, with many governments focused on creating high value intellectual property and developing skilled workforces. We live in an era where breathtaking technological advances are happening all the time in areas like AI, quantum, novel materials, and life sciences while there is a pressing need to speed up the transition to lower carbon ways of living and working. The UK is very much part of that story of change, but innovation does not happen in a vacuum, so we hope to see wider challenges like housing, transport and skills addressed as a priority, along with some very specific issues such as planning reform and support for local authorities to bolster their resource in this area. It’s an exciting time and we wish the new government well in embracing the challenges and talking to business about the way forward.”
Kris Collett
Managing director, Castlemere Developments
“Big change is now on the horizon with this landslide Labour victory. The housebuilding industry has struggled under 14 years of Conservative government and we are optimistic about the change a new government will provide. With a large parliamentary majority, Labour is in a position to bring forward much needed planning reforms required to get bolster the housing sector and get the country moving. I believed the whole industry is now a little more optimistic about the future.
Melanie Leech
Chief executive, British Property Federation
“We look forward to working with Angela Rayner in her role as secretary of state for Levelling Up, Housing and Communities. The property sector stands ready to work with her and the incoming Labour government to forge a new partnership based on a clear vision and a stable policy framework, and harnessing the power of public-private partnerships to deliver for local communities. The size of Labour’s majority is a strong platform to take the swift and decisive action in key areas such as planning, that will give long-term investors confidence and unlock more private capital to deliver housing and local infrastructure such as logistics facilities, revitalise high streets and decarbonise our older building stock.”
Guy Sackett
Property partner and acting head, Irwin Mitchell
“In these fiscally challenged times and the (inevitable) absence of any meaningful central funding for local authorities to support crucial housing-led urban regeneration, the biggest private sector plea from me would be for the new government to prioritise investment in experienced and expert planning and regeneration officers. They play a crucial role in enabling local authorities to effectively engage with private sector partners, who are ready willing and able to work with local authorities to deliver these complex projects. Placemaking sits at the heart of what levelling up is all about and should be at the forefront of the new government’s housing policy.”
Alistair Allison
CEO, TFT
“The political and economic uncertainty of recent years has slowed the pace of decarbonisation across our sector. A new government with a significant majority – and a focus on economic growth – could encourage building owners and investors to invest once again in improving their assets with a long-term view. But funding is only one challenge hampering our route to net zero. Another is the competing priorities and standards across our industry. An important step from a new government would be committing to better measurement and improvement works for our existing buildings. Reinstating EPC targets is one thing, but creating a more realistic measure of energy efficiency than EPCs would be even better. Beyond measurement, an ambitious national retrofit strategy would give our industry a clear goal for accelerating decarbonisation and reducing operating costs in the process. Time is not on our side. We have the skills and we know what best practice looks like, but our industry has yet to apply it across the board. Legislation and regulation could help all the players in the asset lifecycle to move in the same direction and clear the path for action.”
Marion Baeli
Principal – sustainability transformation, 10 Design
“The new Labour administration’s proposed policies for energy and climate are absolutely essential for the country to achieve its net zero ambition and help mitigate global warming, which include the decarbonisation of the grid and the additional £6.6bn in home energy efficiency improvements. Nevertheless, these policies are not sufficient on their own, and must be paired up with a National retrofit plan that would include the insulation and ventilation of homes, to make a tangible difference for both the climate – considering that ~39% of the UK carbon emissions relate to the construction industry and 28% specifically to buildings in use – and the comfort of 27 million homes in the UK. Enhancing the ability of our housing stock to retain heat will lead to a lesser demand for infrastructure investment, and provide occupants with multiple co-benefits such as better internal comfort, especially for low-income households who can’t afford to switch on their heating and ventilation systems and suffer the most from humidity and poor indoor air quality. As an industry, we look forward to working with the new government to decarbonise our built environment and improve housing conditions for future generations.”
Andy Hay
CEO, Hollis
“Five years ago those investing in the real estate sector were hesitant at the idea of an overly left-wing Labour Party coming into power, but the sentiment from most seems different this time around. Investors from the UK and oversees will be looking on with interest to see how the market reacts initially, as well as what early signs come out of Downing Street regarding economic stability. The prime minister and the new chancellor will know that the worst thing they can do is do something to reduce the trajectory of the economy, which should hopefully mean that the real estate sector is able to grow.”
