09 July 2024
In her first speech as Chancellor, Rachel Reeves announced the government’s new mandatory housebuilding targets for England. She also revealed plans for the loosening of planning rules to support housing targets, an issue which has previously held back housing delivery in the UK.
Stacy Eden, national head of real estate and construction at leading audit, tax and consulting firm RSM UK, comments: 'Today’s update from the new Chancellor reinforces Labour’s focus on housing targets, planning reform and infrastructure investment, as set out in their manifesto. This sends a clear message that they are committed to restimulating the housing market and supporting long-term growth by building 1.5m homes. This is important from an economic and social perspective, as currently the UK’s planning system has resulted in 80% of all housing wealth residing in those over 50 and is restricting economic growth with a supply and demand imbalance. Government also needs to address high rental prices, which alongside rising mortgage rates, have been making home ownership increasingly difficult for first time buyers.
'Planning reform will remove some of the fiscal constraints and boost productivity by encouraging cash flow and investment to the market, working in conjunction with local planning authorities to revive the National Planning Policy Framework. While this is the obvious place to kickstart economic growth, a new, accelerated planning system needs to be followed by SDLT reform, as the chronic lack of housing has left too many people trapped in the rental market, driving up property prices, and causing a major affordability gap. Reviewing SDLT policy will therefore ensure more people get onto the ladder and reduce the number of households relying on government support.'

