Some of the UK’s largest property and housebuilding firms have welcomed the Labour government’s promise to “get Britain building again” with a reintroduction of compulsory housebuilding targets, calling them “hugely encouraging”.
The plans, which were announced by Rachel Reeves on Monday morning in her first speech as Chancellor, will see a radical overhaul of planning restrictions to try and hit the new administration’s target of building 1.5m homes in England before the end of this parliament.
Three FTSE 100 housebuilders, which will all find themselves responsible for delivering many of the homes Reeves wants to see built, have already praised the tone and content of the speech.
David Thomas, CEO of Barratt Developments said: “Building more new homes will bring huge economic and social benefits to the UK, and it is vital that local and central government are united with industry to plan positively to deliver high quality new homes and developments across the country.”
Meanwhile Jason Honeyman, who heads up FTSE rival Bellway, said: “The ability of housebuilders to deliver new homes ultimately relies on having a planning system in place that is efficient, effective and adequately resourced. In recent years, the challenges with the planning system have acted as a significant barrier to our sector. “
Rob Perrins, CEO of Berkeley Group, also welcomed the shift in tone, declaring the plans a “very positive start”.
Housing was one of the dominant issues of the recent election campaign, with all three main parties committing to build between 1.5m and 1.9m homes.
But while Labour committed to set mandatory housebuilding targets for local councils to hit, the Conservatives stopped short of committing to the top-down measure.
‘Sorely needed’ plans an important first step
Other property and construction beasts added to the praise heaped on Reeves. Boss of FTSE 100 real estate giant Landsec, Mark Allan, said his firm would support Reeves in their mission to get Britain building again, but cautioned: “It’s important the Prime Minister also understands the need to provide stability. Stability of leadership. Stability of regulation.”
Reeves also used her speech, which she delivered to a group of business leaders and investors on what was the first full working day of the Labour government, to announce the reversal of the effective ban on onshore wind.
The move also attracted plaudits from the infrastructure space.
Commenting on the planning reform, Mark Reynolds, the chairman and CEO of Mace Group, said: “Today’s announcements show a welcome proactive approach to tackling the delays to the planning system that are costing the UK up to £11bn a year in growth and hampering the delivery of the homes and infrastructure we sorely need.”