Rachel Reeves is being urged to introduce “radical and credible” reforms for the UK housing market in her Budget this autumn, or risk continued stagnation.
In an open letter to the chancellor, property financier Daniel Austin, CEO and co-founder at ASK Partners, outlines a series of recommendations to boost the market and tackle the ongoing shortage of homes.
Austin writes: “The housing market has been stagnant for much of this year, with developers, investors, and consumers adopting a cautious ‘wait and see’ approach. This uncertainty is exacerbated by piecemeal policy signals without clarity, risking further paralysis over the coming months.”
He continues: “Your commitment to 300,000 homes per year is welcome, but insufficient. This target has existed since 2004 and has never been met. Capital Economics estimates we now need at least 385,000 new homes annually. Since 1970, France has built nearly twice as many homes as the UK despite similar population growth.”
Austin calls for the government to empower SME housebuilders, reform the planning system, boost construction skills, prioritise social housing delivery, incentivise brownfield development, and attract greater investment.
“Planning delays remain the number one barrier for investors and developers, creating uncertainty and inflating costs,” he writes. “The system is paralysed by political conflicts of interest, with councils deterred from being pro-development. We propose independent decision-making to remove these conflicts, alongside greater private sector involvement to clear backlogs swiftly.”
Austin also warns of labour shortages and skills gaps, stating: “Post-Brexit labour shortages continue to hamper the sector, with small contractor teams unable to meet demand efficiently. Policies to drive off-site construction would boost productivity, attract younger and more diverse talent, and reduce build times and costs.”
Austin emphasises the need for prioritising social housing and simplifying compulsory purchase order processes, arguing that “the net loss of 200,000 social homes over the past decade has deepened the crisis. Councils need genuine powers and incentives to deliver social housing at scale.”
On investment, the letter notes that “91% of private investors are keeping their real estate allocations over the next 12 months”. Austin adds: “If supported by clear, investor-friendly policies, this capital could be channelled efficiently towards development and infrastructure expansion.”
The letter concludes with a warning that “delaying clarity risks prolonging stagnation”.
Austin writes: “We urge you to deliver decisive reforms and targeted stimulus to restore confidence, unlock supply, and drive the economic growth the UK urgently needs. Investors, developers, and communities stand ready to support this agenda if you provide the framework for them to do so.”
Read the orginal article: https://propertyindustryeye.com/chancellor-warned-of-housing-market-stagnation-without-urgent-reform/
