Housing crisis will be ‘front and centre’ of coming election

Real estate leaders have called for the next government to focus on planning reform and the housing crisis in order to help “unlock growth across the UK” in the words of Landsec chief executive Mark Allan. Prime minister Rishi Sunak last week called a general election for 4 July, saying the country needs to “choose its future”. He added: “These uncertain times call for a clear plan and bold action, to chart a course to a secure future. You must choose in this election who has that plan, who is prepared to take the bold action necessary to secure a better future for our country and our children.” Landsec’s Allan said: “It’s important that the next government recognises that very few problems are likely to be resolved by adding greater complexity to policy. We need a simpler, more stable framework for businesses to operate within, unlocking growth across the UK. “We’ve set out a series of planning reforms that we believe will help to do just that – by reducing complexity, providing the right resource and through a greater focus on bringing forward truly transformative regeneration schemes. If measures like these are adopted, our sector can meaningfully contribute to creating more growth, more jobs and an improved quality of life for people living and working in urban areas.” The real estate sector is happy to have clarity after months of speculation around the election, anticipating what Seb Verity, head of research at Allsop, called “a fresh start” with the next government. Verity added: “We’ll have a full sense of battleground issues for real estate in the election once the ‘wash-up’ period is over, but the sector has been preparing for the impact of changes on renters, ground rents and on non-dom tax.  “While it is frustrating that much of the hard work the industry has put into engaging with the government on key issues may have been for nothing, hopefully it will offer the chance for a more constructive, fresh start with whoever makes up the new government. Some of what we need to see includes the acceptance of the need for fixed-term tenancy for student lets in the private rented sector, financial support for SME construction firms to reverse the decline in the sector’s capacity, a new system of support for first-time buyers, and a long-term strategy to maintain and improve the UK’s housing stock.” Focus on students and key workers Dan Green, partner at Tri7, said markets rarely welcome political upheaval and the confirmation of an election date is a big relief. He added: “The market has been stagnant amid the uncertainty over the past 12-18 months and, whatever happens on 4 July, the increased political and economic stability should breathe new life into the market in the second half of the year. “As an investor in student housing, we’ll also be watching the new government’s approach to university funding and international students closely. The government needs to recognise that cutting student numbers will have a hugely detrimental impact on our higher education sector – including loss of jobs, reduced research funding and reduced teaching quality.” David Thomas, chief executive of Barratt Developments, said: “It is clear that the housing crisis will be front and centre in this election campaign and we look forward to seeing positive policies from all parties aimed at increasing housebuilding, supporting people onto the property ladder and helping the industry to build strong sustainable communities.”  Industry figures highlight the specific need for the incoming government to focus on affordable housing and key worker housing. Olivia Harris, chief executive of Dolphin Living, said: “The pandemic, followed by the cost-of-living crisis and rapidly increasing rental prices, has left many of the critical workers in UK cities struggling to afford to live within a reasonable commute of their workplace. Not enough homes are being delivered to ease the pressure and, without intervention, cities like London could face an exodus of our key workers. Our country’s lack of affordable housing is an issue ignored by successive governments. “We are calling for the next administration to invest in high-quality, well-managed, intermediate housing in the areas of greatest housing unaffordability and highest demand. This would provide homes at affordable rents to support workers on modest incomes to live near to their place of work.” Address skills shortage But the industry knows that progress will not happen immediately, regardless of which party wins. Wayne Douglas, managing director at City & Country, said: “I hope to see much-needed change, but it will not happen overnight. Increasing housing supply, planning reforms and the battle over building on green belt land will take more than a few new policy initiatives, whichever government comes into power. “The new government must address the skills shortages that are causing the problem, such as a lack of experienced planners and a lack of skilled tradespeople. On a local and national level, the new UK government needs to create an environment where private, and particularly SME housebuilders, can thrive and ultimately support the end buyer.” Rick de Blaby, chief executive of Get Living, added: “I’d call, as would everyone in our sector, for the articulation of a grand vision and a comprehensive plan to fix the UK’s housing crisis. It must be one of the key pillars of the election campaign and whoever is in government in six weeks has to start by really being able to ‘sell’ what the grand vision is for housing in the UK, so that people see development as a force for good, whilst ensuring that the country is positioned as a compelling investment case so that we have the capital to deliver it.” Image © Tomas Anunziata/Pexels