Chancellor Rachel Reeves’ Spring Budget has received a mixed response from senior figures from the built environment industry.
Many of the announcements made by the chancellor had already been trailed leading some political experts to describe Reeves’ statement as a “non Budget”. Some senior industry figures described the Budget as a “missed opportunity”
Industry response:
Justin Young
CEO, RICS
“We are glad the chancellor has announced a number of measures RICS have been advocating for to support housebuilding, skills development and businesses. The announcement by the government of an additional £2bn investment to build 18,000 new social homes is an enormous boost for the sector. Alongside ongoing reforms to planning, this should provide increased confidence for housebuilders across the country.
“According to RICS data, the gap between housing demand and supply continues to widen, so these new social homes will prove vital for supporting new supply and crucially housing the most vulnerable. The £600m of additional funding for construction sector skills is a decisive investment in the UK’s built environment. This should help secure the next generation of construction sector workers and professionals as we look to tackle the challenge of an aging workforce alongside acute labour and skills shortages. If this can be combined with a new GCSE for the Built Environment in England, we can drive fresh talent to take up the new opportunities afforded by this investment.
“We are pleased the government will publish plans for much needed business rates reform later this year – hopefully creating a fairer system for businesses as they face increasing financial pressure. Given that the country currently faces deep economic challenges, these measures are certainly positive news for the built environment. While this isn’t everything on our list of asks, this is certainly a step forward. We look forward to its and continuing our conversation with the government as it seeks to transform the built environment.”
Melanie Leech
Chief executive, British Property Federation
“Against an uncertain economic backdrop the chancellor has doubled down on the commitment to ‘back the builders’, with the OBR forecasting 1.3 million homes could be delivered by 2029/30 and planning reforms could be a significant driver of GDP growth. This message will be welcomed by the industry, as will the commitments to maintain capital spending on infrastructure and day-to-day government spending alongside new funding to support construction skills.
“However, we would have liked the chancellor to unlock even more investment in the context of Regulating for Growth. Delays caused by the Building Safety Regulator are still blocking new home delivery, pension funds need to be allowed to invest more in UK property, and further planning reform is needed to make it easier for institutional money to fund more social and purpose-built private rented homes.
“We need the whole industry to be firing on all cylinders, including our under-resourced planning departments. That means 3000 more planners rather than the 300 that have been pledged and we would urge government to consider how its Transformation Fund can be used to enhance skills and capacity.”
Vivienne King
Chair, Shopkeepers Campaign
“It is regrettable that the government has stuck to its decision to reduce and then scrap the Treasury’s support for retail through RHL business rates relief, worth £1.3bn this year. This amounts to a stealth tax on all commercial occupiers of retail property. Together with rises in National Insurance it will reduce investment and damage jobs in the retail, hospitality and leisure sectors.
“The government needs to stop treating retail like a cash cow and recognise that shops and town centres are a vital part of community life. The government should reverse this damaging spending cut as soon as possible to avoid further closures on the high street.”
Walter Boettcher
Head of economics and research, Colliers
“While the Spring Statement weighed heavy on optimism, supported by OBR’s theoretical forecasts, the real impact of the Autumn Budget is yet to be felt directly – especially the national insurance, tax and national minimum wage increases. The chancellor’s statement raised an element of hope, although it is built on plans that are only meant to reach fruition later in the Budget horizon, such as planning reforms and a boost to house building.
“The statement changes little in the short-term and markets have not moved much in response. There wasn’t much for the UK commercial property sector, although with substantial increases in defence spending confirmed both here and in Europe, some specialist sectors may begin to feel a lift from increasing investor interest.”
Paul Rickard
Chief executive, Pocket Living
“Major reform of the planning system remains a vital priority but cannot be achieved without significant additional resource. Ahead of the Spending Review as an SME housebuilder we are more susceptible to any reductions in planning and place-making capacity within local authorities.
“To mitigate any negative impact of spending constraints on either planning reform, or support to the SME housebuilding sector, we are exploring with the government a number of initiatives, and would hope to establish a dedicated planning reform and SME market access strategy transformation fund, within the government’s wider proposed transformation fund, to help both councils and the industry maximise the opportunities from planning change and help deliver housing growth at a local and regional level.”
Mark White
Managing director, Bargate Homes, and chair of the Future Homes Hub’s SME liaison group
“With housing and planning reform having been a key focus of Labour’s election campaign, the recent changes introduced by MHCLG show the government’s intent to deliver on its manifesto promises. However, the OBR has confirmed the economy has flatlined and 1 April will see much-dreaded hikes in Stamp Duty, Living Wage, and employer National Insurance contributions, energy price rises in excess of inflation, and a raft of spending cuts.
“Why didn’t the chancellor seize the opportunity to introduce some easy wins? With the NPPF and Planning and Infrastructure Bill recently unveiled, the Spring Statement would have been the ideal platform for Reeves to recognise the vital role housing can play in the health and growth of the UK’s economy. The government’s positive planning changes need to be met with demand side assistance.
“For the first time since the 1960s, there is no home ownership support available to broaden access to the housing ladder for those without a large deposit. Yet, there is a plethora of measures the chancellor could have announced to stimulate the housing market, which would either be cost neutral, or have a cash-generative impact.”
Dan Drogman
CEO, Smart Spaces
“The commercial property sector is being strangled from all angles and the government needs to relieve that pressure. The sector contributes billions of pounds annually towards both GDP and tax revenues, meaning it’s not just vital for net zero, but the economy too.
“Expanding retrofit tax relief is a no-brainer if the government is serious about cutting carbon and keeping the UK’s office market competitive, but more can be done. Business rates still penalise landlords for upgrading buildings, discouraging investment in energy efficiency. This needs to change. Without action, we risk a wave of stranded British assets and businesses stuck in outdated workspaces.”
Brian McArdle
Managing director, Gleeds UK
“The chancellor’s first budget raised taxes by £41.5bn and, while we did not expect this second to reverse them, what she did need to do was restore confidence to those operating in the built environment who currently feel dispirited, unsure and under-confident. The news of £600m worth of investment to train up to 60,000 additional skilled construction workers as well as a Local Skills Improvement Plan (LSIP) which will benefit from £20m is to be welcomed, but there was nothing in today’s statement to buttress investor confidence.
“It’s certainly not jam today it is jam tomorrow and any jam available seems to be being spread over an ever-widening piece of toast. This was not a statement that will empower investors. It was a fingers-crossed approach from a chancellor being driven by the markets, rather than the other way round.”
Mark Buddle
Partner and head of residential development, Bidwells
“Our industry has for a long time trumpeted the importance of reforming the planning system in boosting GDP and the reforms announced to date are welcomed. Confirmation that the OBR’s forecast Labour’s proposed planning reforms to bring a significant boost to the economy will be no surprise to many.
“However, although many in the industry believed that the target of 1.5 million homes in this government was a tall order, the announcement today that these reforms are only likely to deliver 1.3 million homes is disappointing as it represents a material downgrade compared to its previous target during its tenure, which, considering population growth, is unlikely to significantly ameliorate the housing crisis.
“The government must be willing to do as much as it can to streamline the planning system to unlock land for development, as well as ensuring the housebuilding community is supported – including additional support for SME’s – if it wants to plug the housing supply gap in a meaningful way”
Josie Parsons
Chief executive, Local Space
“While this week’s announcement of an extra £2bn to unlock affordable housing delivery is to be welcomed, in the context of soaring levels of homelessness, and the burden this is placing on many councils, we remain deeply concerned about the ability of local government to have adequate funding to deal with this. The rising costs of providing temporary accommodation is driving many councils to the point of financial failure and the impact of proposed welfare changes which may affect some of the most vulnerable in society, risk creating a perfect storm of rising homelessness levels and councils less able to afford good quality housing.
“Given the scale of the challenge we would urge the chancellor and deputy prime minister to enhance homelessness budgets, review the impact of some of the planned welfare changes, and consider diverting some of the £2bn of funding into rapidly scaling-up the supply of high-quality temporary accommodation until the much-needed new social housing becomes available. The social and economic consequences of not doing so are significant when we are spending record amounts on temporary accommodation, much of which is sadly not fit-for-purpose.”
Heather Powell
Partner and head of property and construction, Blick Rothenberg
“£2bn of capital expenditure a year to drive growth and productivity – but the chancellor has missed a major opportunity to increase investment by the private sector by not increasing the maximum interest a corporate group can claim as a tax deduction every year.
“The current £2m threshold was imposed when the BOE base rate was 0.25% – rates are currently 4.5% – businesses who are investing in expanding their businesses and UK Infrastructure should be allowed to deduct the cost of debt funding investment of at least £10m a year.”
Clive Docwra
Managing director, McBains
“Given the fragility of the economy and the need to provide a growth stimulus, there was little new in today’s statement to cheer the construction sector, given that much, such as the apprenticeships reforms, had been previously announced.
“On the plus side, the £2.2bn defence spending boost will have benefits for a number of construction firms operating in the sector. But we would have also liked to have seen some encouragement to give investors and developers increased confidence to commit to housebuilding projects which could help deliver the government’s target.
“The OBR projection that the government’s planning reforms will lead to housebuilding reaching a 40-year high is one thing, but whether it means the government will actually hit its ambitious target is another, because we need to achieve numbers not seen since the 1950s.”
Jennet Siebrits
Head of UK research, CBRE
“The improved commitment to the delivery of affordable housing in the UK marks a step in the right direction and should help resolve short term uncertainty as the current Affordable Homes Programme comes to an end. While 18,000 homes only accounts for 1.2% of the governments overall housing target, it is a significant number and the requirement to build during this parliamentary term ensures quick action will follow.
“However, it is not just affordable housing that is needed. Building across all tenures is a must and this includes attractive offers for the elderly looking to downsize, the private rental sector and the rapidly expanding build to rent market. We have seen a slowdown in development for build to rent and single family housing schemes, largely a result of planning constraints and the building safety act, and we must now look at the reasons behind this to unlock further growth opportunities.”
Karl Horton
Chief data officer, BCIS
“There wasn’t much in the chancellor’s statement for the construction industry to rely on over the coming months, especially with the OBR halving its 2025 growth forecast since the Autumn Budget. It’s interesting that the government is now talking about getting ‘within touching distance’ of its housing target after months of the industry outlining why it was so unlikely 1.5 million new homes was possible, though the £2bin additional investment in social and affordable homes is welcome.
“Elsewhere, the already-announced £625m investment to train up to 60,000 skilled construction workers over the next four years is still insufficient to replenish the workforce lost since before the pandemic. While making the industry more attractive to new workers isn’t solely the government’s responsibility, firms have little incentive to expand their workforce and invest in training while economic uncertainty persists. Unfortunately, investment and funding decisions are subject to ongoing volatility, with the threat of tariffs and escalating trade tensions hanging over the UK.”
Hilesh Chavda
Partner, Spencer West
“Any slim hopes of a U-turn or softening to the Business Property Relief and Agricultural Property Relief Inheritance Tax changes or non dom changes have been dashed. Clearly now is the time for those potentially impacted by these changes to act to help mitigate the fallout, and I will continue to advise clients on the rules that we have.”
James Farr
Director, Think
“There is a pressing need to tackle the construction sector skills shortages and so we warmly welcome Chancellor Rachel Reeves’ formally pledge to address this vitally important issue. The commitment to improving availability of teachers with industry knowledge and skills is also a positive step, as this remains a key challenge for the further education sector.
“It is critical that Construction Industry Training Board efforts to provide work placements translate into a tangible increase in college learners progressing into apprenticeships which are the primary entry route into the sector. Ensuring this pipeline functions effectively will be key to addressing long-term skills gaps and supporting economic growth.
“We look forward to further details on the proposed technical education colleges. It will be essential to ensure that their sectoral and occupational focus aligns with local skills priorities, to meet workforce demands.”
Tim Balcon
CEO, Construction Industry Training Board
“Despite navigating an uncertain world, the Chancellor’s Spring Statement this week has been accompanied by two significant announcements for the construction industry. Firstly, the £600m package for construction skills to catalyse the government’s homebuilding target. Second, the £2bn investment into affordable homes to accelerate delivery
“As part of the construction skills package, CITB is providing £32m to support the government’s aim to fund over 40,000 industry placements each year. Additionally, we’ll be doubling the size of our New Entrant Support Team that helps make finding, recruiting and retaining an apprentice or new entrant easier for employers.
“The government’s continued support for the construction industry through increased investment in construction skills is extremely welcome. As an industry, we need to collectively grasp this opportunity and be better at shouting about what a fantastic industry this is, the prospects it can offer people, and attracting people into pursuing a career in construction. I genuinely believe this is a once-in-a-generation chance to us to recruit and train our workforce – equipping more people with the skills they urgently need now and in the future.
“The government aims to build 1.5 million new homes and approve 150 major infrastructure projects by the end of the decade – indeed, plans for Lower Thames Crossing were approved earlier this week. The opportunities aren’t just on the horizon, they’re in the here and now.”
Mark Evans
Head of property, Royal London Asset Management
“As long-term investors in the region’s science and innovation sectors, it’s encouraging to see the government’s commitment to the Oxford-Cambridge Arc reinforced in this statement. As the government’s infrastructure and housing initiatives in the region start to roll out – supported by its announcement this week of £600m funding for the construction sector – we can expect that the Golden Triangle will continue to offer an even stronger proposition for investors in the UK economy.”
Cllr John Merry
Chair of Key Cities and deputy mayor of Salford
“Our network welcomes the announcement of £2bn for affordable homes. Key Cities is committed to working with the government to deliver on its mission to stimulate growth through boosting housebuilding. However, this must be part of a long-term strategy for addressing the UK’s widespread housing needs.
“Temporary accommodation continues to drain council budgets. In the face of a growing homelessness crisis, one of our member cities recently reported that it is having to spend up to £4m bill for temporary accommodation. This is money that could be invested in other vital services such as welfare and social care.”
Chris Glover
Director of total utilities management, Buro Happold
“What the spring statement lacked was details on where we’ll see system reform to curb the rising energy prices. We currently pay around £1 billion per annum to curtail renewable energy generation when the grid cannot handle the power. This is an eye-watering amount of money that is simply passed on to customers, who end up paying for both the curtailed renewable energy and the gas that replaces it.
“This inefficiency significantly impacts energy bills. We urgently need more comprehensive system reforms to transition to a more sustainable and efficient energy system, and to address these inefficiencies in ways that support all regions.”
Sean Keyes
CEO, Sutcliffe
“If Rachel Reeves’ announced public spending cuts hit planned infrastructure projects, then this is bad news for the construction industry. We need continued investment, not cuts, to fix housing shortages and boost the economy. What’s needed now is stability and clarity to help us chart a clear path forward as uncertainty deters developers from taking even the slightest risk and expanding their project portfolios, reducing the future housing stock.
“For that reason, I welcome Rachel Reeves’ announcement of an additional £2bn for social housing, aimed at softening the blow of today’s spending cuts, as well as the additional £20m housing package announced by Housing and Planning Minister, Matthew Pennycock. This funding is set to deliver 18,000 social homes, contributing to Labour’s broader ambition of building 1.5 million homes by the end of the parliamentary term. While there’s no doubt that this move is a vital step towards addressing urgent housing needs, I remain skeptical about whether these targets can truly be met.”
Robert Sloss
Chief executive, HUB
“The government’s announcements leading up to the Spring Statement have all aligned with its desire for increased housing delivery. As a sector, we share that desire, but getting more schemes on site continues to be a hurdle. We are in continual dialogue with international institutional investors and know there is strong appetite to invest in the UK living sector, but they need certainty of timescales and viability.
“In our experience, we know that this kind of patient capital is required to enable successful long-term, large-scale regeneration. Without the inward investment that build-to-rent (BTR) can attract, delivering anything close to the government’s 1.5m homes target will be a struggle, especially in London. BTR is key to unlocking this urban renewal – time and again we have seen it act as a catalyst for development due to forward funding.
“Pairing this with the £2bn announced for affordable housing, a mixed-tenure approach that includes alternative living typologies like BTR can maximise the government’s investment and create higher calibre neighbourhoods. With the cost of construction climbing higher, including for affordable housing, we hope this funding will make more schemes viable across the board.”
Lee Elliott
Global head of occupier research, Knight Frank
“This was a Budget that sought to reassure rather than reinvent. With business confidence still fragile – especially in manufacturing – many had hoped for bold measures to unlock investment and support growth. Instead, today’s announcements were light on direct business interventions. The rise in the National Living Wage to £12.21 will be welcomed by workers but adds pressure for employers already balancing rising costs. And while welfare reform and increased defence spending show fiscal intent, they offer limited immediate benefit to the broader business community.
“The UK’s tight labour market, with unemployment still low but economic inactivity stubbornly high, remains a critical challenge. Yet there was little in this Budget to address skills gaps, hiring constraints, or long-term workforce participation. There’s a clear message of control and stability – but sentiment alone won’t drive hiring, productivity or innovation. If this Budget was about laying the groundwork, the next must be about delivery.”
Jon Di Stefano
Chief executive officer, Greencore Homes
“While the new Affordable Housing Programme expected in June is critical, another £2bn committed to affordable housing delivery now has signalled to the sector that the government is committed to matching its ambitions with the investment needed to make it a reality.
“Coupled with targeted infrastructure investment in high-growth areas like the Oxford-Cambridge arc, the provision of good quality homes to house those rapidly growing communities will be of huge importance. The £2bn is expected to fund about 18,000 social and affordable homes, and the key consideration now will be with what, where and how they’re built. To deliver the best value for the UK from this investment, long-term sustainability needs to be top of mind.”
Dave Seed
Managing director, Qube Residential
“Despite the government’s commitment to a single budget each year to provide much-needed stability, today’s spring statement announced by Rachel Reeves, while not a proper budget, highlights the government’s continuous promise of growth, even though it aims to achieve this by making spending cuts and tax increases. The public spending cuts announced today will almost certainly impact the broader economy, further slowing the already sluggish housing market as confidence continues to decline. Uncertainty discourages landlords and even developers from expanding portfolios, limiting the rental housing stock.
“That said, I support Rachel Reeves’ announcement of an additional £2bn for affordable housing. This funding is set to deliver 18,000 social homes, though it’s undoubtedly aimed at softening the blow of today’s spending cuts. However, these sudden cuts could still discourage both current and prospective investors, impacting long-term housing supply and market stability. Developers and landlords may find some comfort in this pro-growth stance, but many will likely remain hesitant to make any major moves after today’s announcement which was meant to provide reassurance.”
Jonathan Parker
Development director, Pagabo
“You could hear today’s Spring Statement and think construction has been overlooked, but the reality is that the start of 2025 has been full of funding and policy announcements for the sector. With Labour moving to one fiscal event per year in the Autumn, this may be why funding announcements came before the statement itself.
“The start of the year has seen procurement reform come into force, and the Planning and Infrastructure Bill published – passing its second reading this week. The past two weeks has seen £2bn of investment announced for new social homes, and £600m for construction skills and training. There’s a clear direction of travel set by the government, aligned with the planning reforms brought into play last year. There is clearly a commitment to delivering on housing promises especially – backed by recognition that skilled professionals and talent attraction are vital to delivery.
“Combined with seeing inflation fall slightly in February, there’s a lot to be positive about – but there is some hesitance too. We must stay grounded and work towards all barriers to delivery being removed, not just some, and big questions remain around whether we have enough planning professionals – or skilled people across the sector at large.”
Rebecca Wilkinson
Partner and property & construction sector specialist, Menzies
“The Spring Statement was mainly a recap on measures the government has already taken to try to boost the economy and contained very little new content. For the construction sector there were two main points of focus: planning reform and increasing the supply of skilled construction workers.
“Reforms of the National Planning Policy Framework (NPPF) were announced in December 2024 with the aim of increasing housebuilding in England. If successful the reforms will increase annual housebuilding by around 30% by 2029-30, which the OBR estimates will add £6.8bn to the economy.
“The government has realised that boosting skills in the construction sector is key to delivering the planned number of new homes and to delivering infrastructure projects. It has therefore committed to investing £625m in England over four years to deliver up to 60,000 additional skilled construction workers. This funding will be used to support construction-focussed skills bootcamps, fund new construction foundation apprenticeships and to deliver more construction courses. The funds will also be used to establish 10 new technical excellence colleges specialised in construction in every region in England.
“The measures sound positive but it will take time before they have a positive impact. In the meantime, the government has done nothing to address soaring construction costs and the increasing number of construction sector insolvencies.”
Russell Smith
Founder and managing director, Ecofurb
“It’s good to see planning reforms will bring housebuilding to its highest level in 40 years, including new affordable housing – but the UK’s biggest climate and cost-of-living opportunity lies in the homes we already live in. Over 80% of homes we’ll use in 2050 have already been built. Without targeted retrofit support, millions of homeowners are left out in the cold.”
Stephanie Cox
Director, E3P
“The chancellor has suggested today that the planning reforms will add £6.8bn to the economy, and put the government ‘within touching distance’ of the ambitious housebuilding target of 1.5 million homes. Once again, the budget cites grey-belt land as a solution to the house crisis, but its complexities have been overlooked.
“Building on this land is costly and difficult. It was already a risk for developers to consider remediating this land. After today’s spending cuts, developers – particularly those focused on owner-occupied schemes – will be even more cautious than before. However, with a clear direction from the government on the challenges and opportunities involved with grey-belt land, developers could have greater confidence in delivering the housing the UK needs.”
Conor Leyden
CEO, LK Group
“The construction industry welcomes the announcement that £600m has been pledged to train 60,000 new workers. However, it’s disappointing to see that Reeves has not offered incentives for businesses that are working tirelessly to tackle the ongoing skills shortage.
“It’s no secret the talent vacuum is worsening, while outputs are dropping and this statement a missed opportunity from the government to support those who will be training these new workers. It’s the businesses who provide apprenticeships and traineeships, who will ultimately drive more young people into the sector.
“SMEs are already dealing with the ramifications of national insurance hikes and increased interest rates and, for many, offering on-the-job training is getting harder. Without access to skilled workers, the industry will not be able to deliver the government’s ambitious housebuilding targets.”
Terry Woodley
MD of development finance, Shawbrook
“Despite challenges across the industry there could be a renewed sense of optimism among the development sector following the news that the OBR believes recent planning reforms will lead to housebuilding reaching a 40 year high. Shawbrook’s own research revealed that 59% of developers we asked were already confident that 1.5 million new homes could be delivered in five years.
“Key facets of the Planning and Infrastructure Bill, which passed its second reading this week, like planning committees, development corporations and strategic planning elements should reduce red tape and streamline processes, which will play a crucial role in delivering the ambitious new homes target. This, combined with the commitment to fill skills shortages by increasing training and jobs within the construction industry should give developers further confidence and the clarity needed to pursue plans.”
Craig Carson
Managing director, Barratt West London
“London faces a set of unique housing challenges, with an acute shortage of homes across all tenures. Key to boosting housing delivery is working in tandem with partners to unlock land opportunities and create a strong delivery pipeline of private and affordable homes, such as our partnership with ASDA at Park Royal and Places for London at Bollo Lane. We therefore welcome the government announcement of a further £2bn of investment into affordable and social housing, demonstrating serious ambition to build record levels of new homes.”
Omar Al-Hasso
Chief executive officer, SimplyPhi
“Following the 2025 Spring Statement, even with the announcement of the additional £2bn of funding for the Affordable Housing Programme, it’s clear that there are still critical issues to address within the affordable housing sector to ensure that there is an adequate pipeline of safe, warm and affordable homes being created for those who need them.
In particular the ongoing freeze of LHA rates remains insufficient to cover the rising cost of rent across the country. Our data shows that across the whole of England there are less 1,000 properties available to rent at the LHA rate out of a total of 66,300. That’s about 1% of the market, as a result this is pushing more households into risk of homelessness and into expensive and unsuitable temporary accommodation (TA).
“If the LHA rate were rebased to reflect just the 25th percentile of rents across the country (not even the 30% as should be or even the 50th as originally set) this would increase the availability of the supply of properties in the market to rent at LHA from 937 homes to 22,209 homes. This would alleviate approximately 20% of households living in TA, saving £500m per annum from TA spend by increasing LHA by just £60m.”
Karly Williams
MD, Croudace Homes
“The government has demonstrated its commitment to delivering more homes with today’s announcement. However, affordability continues to be a significant challenge. It’s encouraging to see the government allocate £2bn to fund up to 18,000 additional affordable and social homes, aiming to start construction by March 2027. We are committed to continuing our growth and working with our housing association partners to help meet the government’s goal of delivering 1.5 million homes and get more people onto the housing ladder.”
Chris Harris
Chief operating officer, Dandara
“Labour’s pledge to deliver an estimated 1.3 million new homes over the next five years is both ambitious and welcome, but its success will depend on how quickly long-standing systemic issues are addressed. While the chancellor acknowledged the planning system’s slow pace and indicated that recent reforms are just the beginning, under-resourced local authorities and slow planning approvals remain significant barriers to development.
“Without meaningful investment in planning departments and local infrastructure, the proposed delivery targets will fall short, and we will struggle to achieve the 40-year high in housebuilding outlined in today’s statement. Delivering on housing pledges early will be crucial to building trust with both the industry and the public.”
Andy Hulme
Group chief executive, The Hyde Group
“We need to be positive about the OBR’s forecasts that 1.3m homes will be delivered by the end of the decade. Whilst this is currently lower than the 1.5m homes by the end of this Parliament that the government is aiming to achieve, it still shows that delivery of new homes will be over 300,000 per year. This would represent a huge achievement and would see the government take housing starts from an historic low to housing completions reaching a 45-year high in less than five years.
“However, while planning reform will play a hugely important role in achieving this increase in new building, it’s even more important to get the finances of housing right, so the sector can play its part in boosting delivery of 300,000 homes a year. To achieve this historic high, it is crucial the government delivers an expanded long-term Affordable Homes Programme at the spending review, and an ambitious ten-year, inflation-linked settlement for social rents, which includes the reintroduction and acceleration of rent convergence.”
John Gravett
Managing director, Cluttons
“The benefits to the economy from activity in the housebuilding sector are clear from today’s Spring Statement. A fully functioning housebuilding and housing market with more homes being delivered across every tenure not only creates economic growth but allows more people to fulfil their ambitions of living how and where they want. However, funding remains a challenge for some buyers, something which the reduced stamp duty charges helped with.
“The government could look at the stamp duty regime again in the autumn, which may also coincide with some base rate cuts. There was no mention of business rates reform from the chancellor – helping create more certainty around this tax, especially as National Insurance starts to rise would have been a welcome move.”
Jonathan Cox
Partner, Anthony Collins
“The social housing crisis is worsening, with fewer affordable homes being built at a time of rising demand. The only way to reverse this trend is to invest more public money to fix the system and create greater stability for registered providers and fix the planning system so that it supports affordable housing development.
“The £2bn one-year boost to the current AHP announced earlier this week is welcome and it will provide some certainty in the short term. However, it isn’t anywhere near enough to address the growing shortage of social homes.
“Registered providers can’t afford to buy land for development or invest to get new schemes underway because rising costs and other challenges have got in the way. They have been forced to reprioritise and redirect funds to maintenance and repair programmes, in order to provide safe, quality homes for existing tenants. The fact that the money is tied to delivery during the current Parliament will help to prevent land banking by developers and might even limit house price increases.”
Tim Foreman
Managing director of land and new homes, Leaders Romans Group
“The additional funding for affordable housing is very welcome especially as the demand for affordable housing, and cost of building it, continues to increase. However, delivery of affordable housing would benefit from addressing a wider range of types and tenures than the government is currently providing for. Specifically, shared ownership plays a very important role in getting people on to the housing ladder and yet seems to have been largely ignored by this government.
“The popularity of shared ownership is increasing, partly because today’s first-time buyers are paying almost a third more to get on the property ladder than they were five years ago. Furthermore, in the last decade the number of private renters moving into home ownership fell by 23%. The government’s current stance on housing affordability – not least the recent increases in Stamp Duty and the freezing of lifetime ISAs – has resulted in policies that are making it even harder for first time buyers to enter the market.
“Shared ownership deserves the same level of government-assisted marketing as benefited the now defunct Help to Buy scheme and it seems detrimental to the whole ‘growth agenda’ that the government is ignoring this important tenure.”
Lawrence Turner
Director, Boyer
“The Spring Statement took place in difficult economic and global circumstances – not least a £20bn hole in the public finances, a shrinking economy and considerable concern about potential Trump tariffs. But the chancellor’s announcement today contained some good news for the planning and development sector.
“The OBR’s estimation is that the changes to the NPPF are set to have the biggest positive growth effect in today’s forecast, with no fiscal cost. The increase in housing supply alone, it predicts, will increase GDP by 0.2% by 2029-30, adding £6.8bn to the economy.
“Of course these figures are nothing more than projections: they require a series of ‘moving parts’ to be put into place very carefully before the financial (and other) benefits are achieved. I, together with my colleagues in LRG’s new homes division, have stated many times that increased housing delivery requires more than planning consents. And so it’s reassuring that the chancellor has committed £600m for construction training to meet the severe resourcing issues, along with a £2bn top-up for the Affordable Homes Programme to help deliver ambitious levels of social and affordable housing.
“Similarly, it’s good to see that the chancellor has understood the detrimental impact that the Building Safety Levy would have had on housebuilders if implemented as planned, and has delayed it by a year. What a difference a year makes. This level of government support for housebuilding is long overdue and we look forward to working to achieve the OBR’s aspirations for our sector.”
Simon Harbour
Partner in building consultancy, Rapleys
“It is good to finally see attention turning to the construction talent the industry so desperately needs with the aim of training 60,000 construction workers and the setting up of 10 specialist skills colleges. The industry has seen a very real and genuine skills gap for too long and this has increased costs and added risk of not having the right experts in the sector able to deliver. We are working with the likes of the RICS on other talent issues in the professional building surveying world and we hope the government will seek to support this in the same vein.”
