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A lot has changed in the past few weeks. We voted, and a new party were brought into power. Now the new Labour government are beginning to lay out their plans for extensive housing developments across Britain. Let’s catch up on the latest announcements and how they may affect the construction sector.
Where We Are Now
It is no secret that the UK housing market is difficult to break into and is becoming unaffordable for many following the recent increase in interest rates. UK house prices have soared in the last 15 years, making it difficult for young people to purchase their first home, and for growing families to move into larger properties. 1.3 million people are on local authority social housing waiting lists, and the Guardian reports that in the last 3 months of 2023 there was a 16% increase in the number of people who are homeless, and a 27% increase in the number of people sleeping rough in Britain. A recent report from Resolution Foundation reveals that UK housing is smaller, older, and more expensive than comparable houses in other developed nations. It is estimated that if no reforms to housing are made then nearly 5 million households will be in unaffordable housing by 2030.
Vision for Construction
Prior to the election, Kier Starmer wrote a letter for Inside Housing outlining his hopes for Britain’s construction sector. Starmer identified growth as the number 1 priority for the new Labour government and looks to push forward development and infrastructure projects that have been previously stalled. Starmer has claimed that it is ‘not fair’ that blockers can prevent the country from growing and suggests that Labour will be looking to remove these barriers to growth.
New Plans for Housing
Rachel Reeves, the new Chancellor of the Exchequer, has announced several new plans for housing following Labour’s victory at the polls. Firstly, Labour has pledged to “get Britain building again” with ambitious plans to build 1.5 million houses over the next five years. It has been suggested that these housing plans will make it possible for 80,000 young people to get on the housing ladder.
Perhaps most controversially, Labour is planning on building on ‘green belt’ land, previously protected by planning guidance offered in the 1950s by Conversative housing minister, Duncan Sandys. It has been suggested that there are large portions of ‘green belt’ land which is actually ‘brownfield sites’, or ‘grey belt’ land. ‘Grey belt’ land doesn’t have a strict definition or parameters, however, Starmer has claimed that there are underdeveloped areas on the ‘green belt’ which could be utilised to build new housing. For example, plots with disused buildings. There will be a new taskforce brought in, and local councils will be asked to identify areas of the green belt that are suitable for new housing developments.
Reeves has announced that compulsory housing targets will be re-instated for local councils. As part of the planned overhaul of planning restrictions on new housing developments, it has also been proposed that planning decisions will be made nationally rather than locally. This is part of a bold push to incentivize sluggish investors who have dropped away after uncertainty in the sector following Brexit and the upheaval of successive Conservative Prime Ministers.
Finally, it has also been announced that Labour is keen to explore greater urban development. Plans to establish new urban communities, towns or small cities, have proved to be difficult to bring to fruition since the 1960s/70s. However, following the scale of their victory, the new Labour government appears to be confident in its ability to overcome the planning and development restrictions that have hampered previous infrastructure projects.
Roadblocks to Housing Development
There has long been strong resistance to large new build developments. When a series of new build estates are tacked onto an existing town, often there is not a great deal of infrastructure renovation to ensure that water and sewage systems, as well as main roads, can cope with the influx of new residents. Moreover, schools, hospitals, and other public health services such as dentists are put under strain when large quantities of houses are built without additional public infrastructure being developed.
Another concern many locals have for new build developments is that they are often largely unaffordable, making it difficult to young people in the local area to continue living in the town they grew up in. Prior to the election, Starmer claimed that there will be a ‘first-dibs’ system to ensure local people have access to new homes. While this may help to improve community building and avoid the displacement of family units, housing affordability is still an issue. The affordability will continue to hamper the new government unless they actively invest in affordable housing.
What Does This Mean for Trades?
While there are some concerns being raised about Labour’s plan for development, for the most part it is a positive turn for the construction sector. The new government is prioritising housing development, thereby ensuring work for contractors across Britain. If Labour is able to secure planning for even a portion of these 1.5 million proposed houses, then skilled labourers across the country will experience a period of job security.
There will be a significant demand for skilled labourers in the coming months and years. There is a current skills shortage, highlighting the importance of apprenticeships and other training routes into construction. In London especially, there is a skills shortage of roofers and carpenters, demonstrating the importance of trained carpenters in any new proposal for building houses or infrastructure. It would be good to see plans for an increase in trade apprenticeships as Labour continues to outline their plans for UK housing.
As plans for new housing roll out, it is important for regeneration projects to not be forgotten. There is a considerable stock of older properties, especially in the north of England, that require retrofitting to improve energy efficiency and longevity. Plans for reaching net-zero are continuing, and it is imperative for existing houses, and residential complexes not to forgotten in these plans. Housing Today has expressed concerns that developers and Housing Associations will be ‘spread thin’ achieving the building aspirations of the new government while also completing net-zero projects.
Here to Support You
While things are changing around us, here at Edge we remain committed to being a building supplier you can rely on. No project is too big or small, and we work hard to make sure there are no delays in your building schedule by offering next day delivery to site. We maintain a high level of stock across our three warehouses in Chichester, Horsham, and Croydon, to ensure we are able to keep up with any rise in demand. At Edge we also source building products primarily from UK suppliers to eliminate time delays in transport. We will be able to keep up with an upturn in construction projects and keep your sites supplied with everything you need.
As new houses are being built, and existing properties are being renovated, we believe that high-quality, low maintenance building products are essential. These products, such as aluminum trims, or PVC guttering, have excellent durability and longevity as they are weather resistant. Light-weight, and available in a range of colours, finishes, and lengths, we are here to get you the best products for your constructions.
Get in touch with us by calling 0345 021 3333 or emailing [email protected] to begin planning your order for your next project. Want to talk about pricing? Speak to one of our Sales guys to get discounted pricing on the materials you use the most.
Sources:
Inside Housing, ‘Sir Kier Starmer: my vision for housing’.
Guardian, ‘Labour plans to build 1.5m homes. Will that help Britons struggling for good housing?’.
BBC News, ‘Reeves to bring back housebuilding targets.’
Guardian, ‘Thursday briefing: Labour wants a housing revolution – can it build one?’