The recent change in Government has sparked fresh discussions on how the housing sector will evolve under new leadership. In her first speech as Chancellor, Rachel Reeves promised to “get Britain building again”, with Labour committing to delivering 1.5 million homes in England over the next five years to boost the UK’s economic growth. The Government has also mentioned bringing back mandatory housing targets, which will be needed to manage this number of homes. The graph below shows new build completed dwellings including all tenures and highlights that the last time 300,000 homes were built in England in a single year was back in 1970!

This initiative directly addresses the housing shortage facing the UK and if successful, will provide much needed affordable homes. We believe this ambitious target will require significant shifts in policy and a new financial model for the affordable housing sector.

The Chartered Institute of Housing (CIH), alongside several housing associations and councils, have signed an open letter to Deputy Prime Minister Angela Rayner to express concerns about the feasibility of Labour’s housing target under the current financial model. The letter highlights that delivering 1.5 million homes is unattainable without a cash injection into the affordable housing sector, and a fair and sustainable financial model being developed.

One of Labour’s strategies involves reviewing green belt boundaries to prioritise the development of brownfield and “grey belt” land. These areas, including disused car parks and wasteland, offer opportunities for redevelopment without encroaching on valuable green space. This approach aligns with Martin Arnold’s emphasis on sustainable development and using existing land resources efficiently. We have successfully completed many urban fringe sites like this, most recently delivering over 200 affordable homes for Brighton & Hove in a joint venture with Hyde Housing; you can find out more about this here.

Additionally, the Labour Government has announced plans for a planning reform through a Planning and Infrastructure Bill. The proposed legislation aims to speed up and streamline the planning process, especially major development projects, to support the new government’s other energy and transport strategies, including upgrading the National Grid and boosting renewable energy use. It is anticipated that the Bill will unlock more housing and infrastructure across the country as well as support economic growth and the environment.

Martin Arnold welcomes the ambitious housing target set by the Labour Government over the next 5 years and we believe that improvements to the planning process are essential to ensure success. However, we are cautious that there are no quick fixes.

As the housing sector navigates these changes, Martin Arnold believes that collaboration between government, housing bodies and developers will be essential to achieve these ambitious targets and to address the housing needs of communities across England.

We are working collaboratively with several housing associations, local authorities and developers, to unlock challenging sites through joint venture partnerships. If you would like to find out more about joint venture, please visit this page here, or alternatively contact us through our website.