Savills discusses Labour’s plans for the new homes market

A lot will be driven by planning reform, with Secretary of State for Housing, Communities and Local Government Angela Rayner set to write to all local authorities to outline expectations – including mandatory housing targets and, where relevant, a requirement to undertake Green Belt reviews.

A new draft version of the National Planning Policy Framework (NPPF) is also expected.

Beyond planning, there are several areas which will have implications for residential development, although they are unlikely to be delivered as quickly as the promised planning changes.

Toby Greenhow is director and head of region for Savills' residential development sales team in Cambridge (Image: RMG Photography)

Reform and regulation of the private rental sector is expected to be high on the agenda. There is potential for this to move quickly if the new government chooses to continue with the Renters (Reform) Bill, which had reached its second reading in the House of Lords.

For delivery of affordable housing, indications of policy will likely come in the government’s first budget, expected no earlier than mid-September. Key issues to be resolved include levels of grant funding available through the Affordable Homes Programme post-2026, and the settlement for social and affordable rents after 2026. 

Both of these issues will be key to restoring financial capacity for housing providers to deliver their own development or to buy Section 106 stock.

The Bank of England will also lead a new task force concerning a National Wealth Fund, specifically to increase direct investment in housing and infrastructure.

To deliver quick wins, the government will form a growth mission board/delivery unit that will target stalled major sites – which in the East of England includes Northstowe in Cambridgeshire.

In addition, some key planning decisions have immediately been recovered by the Secretary of State for determination. Time will tell whether more decisions are to be recovered and it would seem that national economic considerations will now be given greater weight in making planning decisions.

Finally, there are high aspirations to boost development through a new wave of new towns – a list of which could be announced in the next 12 months. We expect this to be the area where progress will be slowest.

As ever, the devil will be in the detail. However, clear leadership will be crucial to ensure housebuilders and the residential development market is best placed to meet the government’s housing ambitions.

For advice on the new homes market, contact Toby Greenhow on 07812 965302 or TGreenhow@savills.com