Planning reform, infrastructure, and housebuilding are key elements of Labour’s first legislative programme in over 14 years, with the new government keen to hit the ground running
Indeed, Prime Minster Keir Starmer and his Cabinet colleagues will be eager to be seen doing it; although that one may be easier said than initially done, given the results of some of its new programme will be long in the baking – and who knows what hurdles yet lie ahead.
The King’s Speech this week was a packed one with King Charles reading out the introduction of 40 bills and draft legislation to come in this Parliament.
All told, the package is intended to “get Britain building” again, both in terms of Labour’s target of 1.5m new homes, but also unlocking new infrastructure considered critical to economic growth. Construction is – naturally – going t play a big role in all this; as is the wider built environment sector.
As the Prime Minister said: “Now is the time to take the brakes off Britain.”
Key among the new programme was, of course, the Infrastructure and Planning Bill, but there was also others of relevance to the industry, such as the Great British Energy Bill, bills covering transport and rail, skills and training, the economy and investment.
Broadly, Labour’s programme has been welcomed, but there’s a lot to digest, and there are still plenty of caveats are areas where industry figures urge/hope the new government will explore in the coming months and years.
Industry reaction
Tina Paillet, president of RICS, welcomed the prominence of planning reform in the new Labour government’s first legislative programme, calling it “yet another step in the right direction”.
“Both housing and infrastructure are huge economic enablers; numerous studies have identified the positive correlation between GDP growth and infrastructure delivery,” she said.
Skills are a critical issue for the construction industry, so the inclusion of the Skills England Bill, naturally, was welcomed.
“Policymakers must address the skills shortage and support industry work in solving this issue, otherwise the UK will be unable to deliver on its 1.5m homes a year target and £805bn infrastructure pipeline,” Paillet added.
“Underlining the need for holistic built environment policy, while we welcome the Renters Rights Bill to support tenants and drive-up standards, government needs to work with landlords to address affordability and supply. Our survey has already shown prices being pushed up due to lack of rental homes.”
Smith Mordak, chief executive at the UK Green Building Council, said: “This feels like a seismic shift towards renewing the places we live, work and play – putting living standards and climate and nature centre stage after years of damaging drift.
“Labour now needs to head-off a national bun-fight over green belts and new developments. A neat solution already has momentum – legally wedding the planning system to both the Climate Change and Environmental Acts, so every planning decision pulls in the right direction.
“This is backed, not just by the green NGOs, but much of the building industry, big banks and the House of Lords. Labour voted to link to the Climate Change Act in opposition, bringing it into law now could be the master stroke they need.
“Planning reform is not just necessary, but essential, if Labour is to deliver on its commitment to build 1.5m new homes over the next five years as well the clean power system the country needs to reach net zero.
“Urging caution is also necessary: Planning reform alone will not act as a magic remedy for all Britain’s building problems. We need better buildings as well as more buildings. We need to tackle the backlog of unhealthy existing homes and newly constructed properties unlocked by planning reform need to be fully sustainable and climate resilient.”
Gillian Charlesworth, chief executive of the Building Research Establishment, said: “Empowering local and regional authorities is key. The English Devolution Bill, in conjunction with the Planning and Infrastructure Bill presents a great opportunity to unlock higher building standards while harnessing local economic growth.”
“[The] King’s Speech underlines the scale of the challenge facing the new government. However, the announcement of 40 bills and draft legislation, nearly double that of the King’s speech in November 2023, shows a confident and ambitious new government who understands what it will take to face down and overcome the challenges of today and the future. We support the ambition set out today and look forward to contributing to its future success.”
Maintain commitment
Allan Wilen, economics director at Glenigan, said: “The government knows it must maintain its commitment to infrastructure investment to foster greater economic parity across the UK, so it’s great to see early action being taken.
“Increasing housebuilding is a key cornerstone of its public proposition. In line with this intention, Glenigan’s Industry Forecast for 2024-2026 predicts a recovery in housing market activity as developers respond to strengthening market conditions. Project-starts are expected to rise 14% in 2025 and 6% in 2026.
“However, this is subject to creating the right climate to kick-start activity. This means tackling high interest rates, real-term wage increases, and inspiring greater consumer confidence. The Planning and Infrastructure Bill, alongside promised changes to the NPPF, should certainly help to buoy starts.
“Looking at other landmark policies announced, the Great British Energy Bill also promises to provide a boost to the construction industry, as the government seeks to increase investment in renewable energy generation and the national grid.”
Dr Stephen Hamil, innovation director at NBS, said: “Further clarity on the government’s plans to accelerate the delivery of new housing will be welcome news for the construction industry. However, any relaxation of planning policy mustn’t come at the expense of building quality and sustainability.
“Getting it right at the early stages of the design process will become more important than ever, as it’s here where the biggest impact can made. Our newest Sustainable Futures report shows that 9/10 industry professionals agree that this comes down to a robust specification. It’s the perfect opportunity to choose materials that insulate, use less energy, and have reduced levels of embodied carbon.
“A new-found focus on carbon calculations will help, and project teams will need greater precision on the carbon cost of buildings to meet our Net Zero targets. To do so, the industry should focus on construction data and see it as a blueprint for lower carbon decision-making that benefits everyone.
“It’s well documented that construction has a recruitment problem, and the industry urgently needs to undertake an investment drive in new technologies and sustainable construction solutions to ensure that it can rise to the challenge of meeting ambitious housebuilding targets.”
Andrew Bulmer, chief executive of The Property Institute, said: “Many of the announced reforms were anticipated, including forthcoming bills on energy and transport, and a renters’ rights bill incorporating the abolition of Section 21. These were widely trailed in advance.
He added: “The introduction of the Great British Energy and a focus on clean energy production gives clear indication that the government has its eye on the 2050 Net Zero targets, and we hope that in its ambition to lower energy bills and reduce carbon emissions, it also looks at removing barriers to decarbonising leasehold blocks and to make fair provisions for grant funding for retrofits and energy efficiency improvements for those in ‘vertical village’ communities.
“Notably, building safety and the remediation of unsafe buildings was absent from [the] speech; we urge government to take notice of the immediate need to fund and fix the thousands of unsafe buildings.”
Anna Woodeson, director of sustainability at Buro Happold, said: “The government has promised planning reform and high quality infrastructure and housing in [the] King’s Speech. This is a welcome promise to address what has become a national crisis – estimates suggest the UK is ‘missing’ around 4m homes. To deliver on this high-quality housing, it’s important any new builds must be designed to net zero standards and with climate resilience in mind.
“Climate adaptation and resilience is a complex challenge, and it should be a central part of the government’s considerations as to where and how it builds new homes. For example, the UK government’s own estimates suggest the number of people in the UK significantly at risk of flooding is projected to increase 61% by 2050 under a warming scenario of 2C. This could reach 118% in a high warming scenario of 4C.
“A second vital element is that the government should prioritise the retrofitting of existing buildings to help meet this target, including the roughly one million empty homes in the UK. This will allow them to capitalise on the benefits of retrofit, such as a reduction in use of new materials, supporting local supply chains, kickstarting a circular economy, and reducing the need to build on areas like green belts, which in turn can be used to enhance biodiversity.”
Political reset
Marcus Dixon, director of UK residential research at JLL said: “[The] King’s Speech offers a chance to reset after a period of economic and political turbulence over the last few years. We are pleased to see that the speech contained a number of commitments on housing including changes to planning laws and a drive to ‘get Britain building’.
“The ambitions of the new government are admirable, but as JLL has said during the election period, large housebuilding targets do not automatically mean greater output. We hope the new government will begin to address the systemic issues within the sector to unlock greater levels of development.”
Chris Sargent, managing director, real estate, UK at Turner & Townsend, said: “The real estate sector will be pleased to see the renewed mandate in the King’s Speech to get the country building. Reforms expected through the Planning and Infrastructure Bill will be an important lever in accelerating development; delivering jobs as well as homes.
“Plans for a new Industrial Strategy Council to direct investment in industry and skills are particularly promising for sectors where the UK can be a global leader, especially in life sciences and green manufacturing.
“Construction needs to be a fundamental pillar in this strategy – focusing on how we build, not just what we build. We need to see further encouragement to adopt digital tools and new technologies that speed up delivery and make full use of a swifter planning process.”
Maria Hudson, director at Zutec, said: “The King’s address to Parliament was packed full of policy, with positive signs towards kick-starting UK construction after years of stagnation. The government’s ambition to kick-start the UK housing market is admirable, and will be welcomed by many housebuilders and developers keen to get shovels in the ground after a period of slow activity.
“However, at this juncture it is good to remind ourselves, whilst planning restrictions will be removed, building safety and net zero-related regulations are very much in place and in force, where compliance still needs to be demonstrated.”
Neela Ahmed, country manager at digital tendering platform E1, said: “Although it’s positive to see ambitions to ‘turbocharge’ housebuilding by building 1.5m homes, issues remain that impact both main contractors and subcontractors. Rising costs and supply chain disruptions continue to challenge the industry, often leading to delays and financial strain.
“The government also wants local authorities to work together to identify regional infrastructure needs and stop individual authorities from blocking plans. This is a positive sentiment, but to get the job done right, the government must support technology like the E1 platform to enhance efficiency, streamline operations, and drive innovation in construction.
“Effective recovery measures focusing on boosting supply-side capacity are crucial to overcoming constraints that have driven inflation and stifled growth since COVID-19 and Brexit. In summary, we welcome the focus on housebuilding and hope the construction industry gets the support it needs to meet the incoming demands.”
Main Image: The King’s Speech. Copyright © House of Lords 2024 / Photography by Roger Harris. Some rights reserved.
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