With the announcement of a new government, a heavy focus on property and the future of UK housing is not just expected, it is needed.
Our housing and planning system is busted and broken; the overhaul from the new government needs to be swift and brutal.
One centres on the Bank of England’s decision over interest rates. The expected rate cut did not happen in June – leaving many dismayed – despite inflation hitting the magical 2 per cent mark.
Now with the election out of the way by the time the central bank’s monetary committee meets again in August, it seems highly likely we will get a quarter point reduction, which I believe will be followed by another by the time we are wrapping up presents at Christmas.
The other key announcement being waited on is Labour’s post-election housing plans, the toplines of which have already been outlined in an interview given by him and Rachel Reeves to the Sunday Times.
The announcement that Labour will forge ahead with new national housing framework at least underlines that he gets the importance of the issue to the future of the country.
This is key. Housing and the property industry is integral to stability and growth, driving jobs, spending, local economies and improving prosperity.
The indicators are there for growth in the UK to kick-start. Inflation is under control, consumer confidence is growing, employment is steady and, in fact, a new report from KPMG says the country will exceed expectations with growth in 2025 forecast to just under 1 per cent.
So, the landscape is starting to form, but unfortunately Labour’s initial plans just do not go far enough and are more of the same political grandstanding that has failed many times before.
The reason is this: the housing and planning system in the UK is not just tattered and torn, it is busted and broken. We need more from housing policy if we are to supercharge the country’s growth but will be forever held back unless someone gets planning policy by the scruff of the neck.
A report in partnership with the Office of National Statistics and Bidwells found that the UK is short of 2.5mn homes and needs to build 550,000 each year from now until 2031 – far below pledges from the two main parties over the next parliament.
Again, if we compare the UK to other countries, France by contrast has built nearly twice as many homes as the UK since 1970 despite having comparable population growth.
This shortfall means the UK – where housing only occupies 2 per cent of land – is now under huge pressure to address the backlog and support future population growth.
There are plenty of energetic housebuilders out there just waiting for the opportunity to get going and help solve this crisis.
