What Gove’s return will mean for real estate

Michael Gove’s return to cabinet as levelling up secretary has been hailed by the industry as a sign that levelling up has been restored to the top of the agenda. New prime minister Rishi Sunak reappointed Gove earlier this week as part of a wide-reaching reshuffle, in which Jeremy Hunt was kept on as chancellor. The overwhelming response to Gove’s reappointment has been relief. While he is hardly the industry’s biggest ally – he once described housebuilders as a “cartel” – the fact that he will not have to get to grips with a new department is seen as a huge benefit. Sources said Gove had returned to the department to “finish the job”. One senior Westminster figure from the other side of the House, who did not wish to be named, said: “The thing with Gove is that he has a real desire to deliver. He wants to get things done. He isn’t interested in just going through the motions. If he has returned, you know it is because he has a plan.” Melanie Leech, chief executive at the British Property Federation, said: “Michael Gove will be able to hit the ground running and we look forward to working with him again. This summer we lost vital time on delivering on the government’s agenda and urgently need a consistent and steady hand on the key issues of the day – housing supply, regeneration and net zero – which are all critical to the UK’s growth ambitions and international competitiveness.” “Talk about deja Gove” Others were less upbeat. Nicola Gooch, planning partner at Irwin Mitchell, said: “We are probably all familiar with the idea of the circular economy. This week, the prime minister introduced the UK to its first circular cabinet. “When it comes to planning at least, two prime ministers later and we are right back where we started. Talk about deja Gove.” The MP for Surrey Heath was fired by former prime minister Boris Johnson in July for “disloyalty”, a day before Johnson himself resigned. Since then, the levelling up post has been held by Greg Clark for eight weeks and then Simon Clarke for seven weeks. In his nine months in the role, Gove moved the levelling up policy from white paper to bill stage and introduced the building safety levy for housebuilders. However, a number of Gove’s planned reforms, covering the planning system, compulsory purchase orders, housing supply and streamlining the number of levelling up funding pots, remained incomplete. While previously at the helm, he frequently locked horns with the Treasury and Sunak over funding. However, with lengthy meetings with the new prime minister already having taken place, there is speculation that Gove many have managed to secure new funding guarantees or powers from the Treasury. The secretary of state was in Number 10 for more than two hours before his appointment was announced, and the following morning was seen arriving at Downing Street hours before any of his new colleagues. Fears allayed over bill’s future In his first speech as prime minister, Sunak committed to “levelling up and building an economy that embraces the opportunities of Brexit, where businesses invest, innovate and create jobs”. Lis Truss failed to mention levelling up once during her short premiership. Mary-Jane O’Neill, head of planning at Lambert Smith Hampton, said: “The appointment is a clear signal of intent from the new prime minister and indicates that the levelling up agenda remains a priority.” She added that Gove had a “proven track record and passion for the brief”. Impact on planning While Gove’s appointment may mean that levelling up is delivered, his stance on planning and development could prove tricky for some in the sector. Marks & Spencer’s redevelopment of its flagship Oxford Street store was called in by Gove when he was last in the post. Levelling up predecessor Clarke was understood to be in favour of the scheme. Gove, by contrast, is expected to block it if that is what the planning inspector recommends. The public inquiry into the scheme, which was called in amid concerns that the existing buildings should be retained rather than bulldozing the site, began this week. M&S has said redevelopment is the only viable option and that if its plans are refused it will sell the site. Despite fears that Gove may meddle more in major schemes than his predecessors, the sector remained largely positive that stability had returned. Emily Williams, residential research director at Savills, said: “Gove’s return, instead of the arrival of a third new minister since July, will hopefully bring some much-needed policy stability and clarity, particularly to the planning system. Over the last 12 months, one in 10 local authorities in England have withdrawn or delayed local or regional plans, with many arguing that the mixed messages around planning reform were making plan production too difficult.”   To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Photo by TOLGA AKMEN/EPA-EFE/Shutterstock (13495842as)