With the recent shift in power to the Labour Government, there have been significant changes in the property strategy, which will directly impact property development in the country. As unveiled in the King’s Speech, the new government’s pledge is to ‘get Britain building’.
This blog will delve into the proposals and the implications on both residential and commercial property developers.
Overview of Labour’s New Housing Strategy
The Labour Government has revealed an ambitious agenda to tackle the pressing issue of housing in the UK, aiming to construct 1.5 million new homes. A pivotal element of this strategy is a move towards liberalising the planning regime, designed to facilitate smoother paths for obtaining planning permissions for new projects.
This strategy marks a significant shift towards encouraging more investment in housing development, by making the approval process less cumbersome for developers. The initiative is expected to catalyse a substantial increase in the volume of development projects, contributing to alleviating the housing shortage while stimulating economic growth within the property sector. This approach signifies the government’s commitment to not only increase the housing stock but also to energise the development landscape by removing barriers to entry and simplifying bureaucratic procedures that have historically slowed progress.
As part of the proposals, Councils will be expected to prioritise building on brownfield sites, with a particular focus on poor quality and ‘ugly’ areas, known as ‘grey belt’. This would include wasteland, disused car parks and pockets of land that are disconnected from main roads or transport links and deemed less desirable. Identified areas fall mainly around large cities such as London, Manchester and Birmingham. In the South, sizeable land around Bournemouth has been earmarked.
Good News for Residential Developers?
Making the planning process more straightforward and faster, would create a more favourable environment for developers to initiate and progress their projects with greater speed and less resistance.
This shift is expected to streamline project timelines, reducing the waiting periods that have previously hampered the initiation of new developments. Increased efficiency in planning processes would not only accelerate the rate at which housing projects are completed but would also encourage more developers to enter the market, boosting the overall productivity of the housing sector. This is a critical step towards meeting the burgeoning demand for housing and represents a significant opportunity for developers to contribute to addressing the housing crisis more effectively.
Impact on the Commercial Property Sector
There has been less attention in the headlines on commercial property, however, there have been some proposals to note.
One of the key promises that Labour has set out is to conduct a comprehensive review of the business rates system. Lowering the costs for businesses could make commercial properties a more attractive investment.
Sustainability is high up on Labour’s agenda. They have pledged to accelerate the UK’s move towards a green economy which will include improving energy efficiency standards for commercial property. Expect stricter regulations for commercial landlords and owners to upgrade to remain compliant. This will impact initial costs, however, over time may result in increased property values, higher rent demand and improved investments.
As with residential property, the new government have proposed to ensure that the planning system is streamlined to make it easier to build new commercial buildings.
Support will be provided for small and medium sized businesses which could increase demand for smaller commercial units and offices for start-ups and growing businesses looking for premises.
What Does the Future Hold?
As with any new government proposals, the proof of the pudding is in the eating! So, we eagerly await further announcements on the progression of the changes.
Navigating the new terrain of property development requires a strategic approach from investors. Keeping abreast of evolving policies and regulatory changes is fundamental.
Get in Touch
Downie & Gadban have expert commercial property solicitors and work with property developers and investors on a wide range of property development and commercial property matters.
For more information about how we work, or to discuss your next development or investment project, please call Julian De Giovanni on 01420 81281 or email Julian at [email protected].
The contents of this blog are for general awareness purposes and do not purport to legal or professional advice. The law may have changed since this blog was published. Readers should not act on the basis of information shared within this, or any other blog, but should seek appropriate, professional advice on their own circumstances.
