With King Charles opening the first Labour government in 14 years with the official King’s Speech, the construction industry offers their thoughts
Following a tense and long election season, King Charles opened parliament with the first Labour government in nearly 15 years.
Whilst much in the way of housebuilding and planning reforms were promised, the UK construction industry is optimistic on the new Labour Government’s plans- although actions will always speak louder than words.
With Labour policies set to be passed quickly and easily, members of the construction industry share their thoughts in what they do and don’t want to see.
The announcement of planning reforms in the King’s Speech were celebrated
Tina Paillet, president of RICS, said:
“It’s welcome that planning reforms sat at the heart of the 35 draft bills read out by King Charles today. Both housing and infrastructure are huge economic enablers; numerous studies have identified the positive correlation between GDP growth and infrastructure delivery.
“Today’s King’s Speech is yet another step in the right direction from Labour policymakers, who have pledged to “take the brakes off Britain” by introducing an ambitious legislative agenda which will get the UK building again, improve living standards, and help deliver the infrastructure to power a net-zero economy. The actions across these will need to be linked to ensure success, and as RICS professionals work across all these agendas, they will collectively provide expertise needed to progress these missions.
RIBA president Muyiwa Oki said:
“The Government has set out an ambitious parliamentary agenda – now, we need action.
“Delivering high-quality, sustainable buildings and places will be at the heart of growing the economy. So, commitments to overhaul the planning system and strengthen the capacity of local planning authorities through the proposed Planning and Infrastructure Bill are welcome.”
Gavin Mason, operations director at Pick Everard, said:
“As expected, the King’s Speech highlighted the need for planning system reform, and for the proposed ‘fast-track’ system for developments aligned with national priorities like affordable housing and green infrastructure. These reforms hope to streamline approval processes, enabling quicker delivery of essential projects.
“The emphasis on community involvement and stricter environmental standards resonates with our commitment to sustainable and community-focused development. Labour’s plans to address housing supply imbalance by leveraging public land and collaborating with local authorities align perfectly with our vision to contribute to the UK’s housing needs.”
Louise Ingram, residential development partner at law firm, Shakespeare Martineau, called for a more cautious optimisim:
“The King’s Speech alluded to a package of reforms, but the much-touted announcement of mandatory housing targets was noticeably absent.
“Promised by the Labour Party in their manifesto, reintroducing mandatory housing targets would have received a sigh of relief from the housing sector as for years, plans have largely been rejected due to a range of factors, forcing the sector into stagnation and further congesting the housing market.
“Although a national target of delivering 1.5m homes in five years is ambitious, it could be achievable with the right changes to the planning system alongside an injection of funding, resources and support for the property and construction sectors.
“The King’s announcement of proposals to speed up the planning process, and to devolve some powers are most welcome but hopefully the detail of these reforms will also include an element of obligation on local authorities to deliver target levels of housing. Implementing targets would compel them to accept development applications that appropriately meet public demand for housing.
“Today’s announcement is only the beginning; we need to promptly see the detail of the planning reforms to be reassured that the changes will be the needed jump start for the housing sector, which will also create a swathe of new jobs and stimulate the wider economy. This could be a positive step change but we need to see the detail and a commitment to swift implementation.”
Getting the UK building again is another priority
President of RICS, Tina Paillet, also said:
“The Skills England bill, which mirrors our calls for the creation of a cross-department skills taskforce responsible for identifying gaps and opportunities in the workforce, is also encouraging. Policymakers must address the skills shortage and support industry work in solving this issue, otherwise the UK will be unable to deliver on its 1.5m homes a year target and £805bn infrastructure pipeline.
“Underlining the need for holistic built environment policy, while we welcome the Renters Rights Bill to support tenants and drive up standards, government needs to work with landlords to address affordability and supply. Our survey has already shown prices being pushed up due to lack of rental homes”.
Allan Wilen, economics director at Glenigan said:
“The Government knows it must maintain its commitment to infrastructure investment to foster greater economic parity across the UK, so it’s great to see early action being taken.
“Increasing housebuilding is a key cornerstone of its public proposition. In line with this intention, Glenigan’s Industry Forecast for 2024-2026 predicts a recovery in housing market activity as developers respond to strengthening market conditions. Project-starts are expected to rise 14% in 2025 and 6% in 2026.
“However, this is subject to creating the right climate to kick-start activity. This means tackling high interest rates, real-term wage increases, and inspiring greater consumer confidence. The Planning and Infrastructure Bill, alongside promised changes to the NPPF, should certainly help to buoy starts.
“Looking at other landmark policies announced today, the Great British Energy Bill also promises to provide a boost to the construction industry, as the Government seeks to increase investment in renewable energy generation and the national grid.”
Dr Stephen Hamil, innovation director at NBS, said:
“Further clarity on the Government’s plans to accelerate the delivery of new housing will be welcome news for the construction industry. However, any relaxation of planning policy mustn’t come at the expense of building quality and sustainability.
“Getting it right at the early stages of the design process will become more important than ever, as it’s here where the biggest impact can made. Our newest Sustainable Futures report shows that 9/10 industry professionals agree that this comes down to a robust specification. It’s the perfect opportunity to choose materials that insulate, use less energy, and have reduced levels of embodied carbon.
“It’s well documented that construction has a recruitment problem, and the industry urgently needs to undertake an investment drive in new technologies and sustainable construction solutions to ensure that it can rise to the challenge of meeting ambitious housebuilding targets.”
However, some issues still need further addressing, as noted by Dan Usher, economics director at planning consultancy, Marrons:
“It is vital that the government tackles other issues in the sector to meet the targets they have set. For example, the shortage of available land is currently hampering building ambitions particularly in urban local authorities, and in rural authorities with vast swathes of planning constraints such as Green Belt. Local planning authorities have been told to review greenbelt land to ensure it is fulfilling its purpose, however, while this could be a great first step, with the conversation around greenbelt development remaining divisive, there is no guarantee it will free up the number of new developments required.
“The Government has also promised 300 new planning officers, while this is not nearly enough to fix the skills shortage, as there are over 300 local planning authorities, it is a step in the right direction.
“With an attempt to provide extra resources, a review of the green belt and ambitious targets set, the government might be saying all the right things, but only time will tell to see if it delivers the long-term change the sector so desperately needs.”
Building new is not the only solution, Buro Happold’s director of sustainability, Anna Woodeson notes:
“Labour’s outlined plans in the King’s Speech to “turbocharge housebuilding” are a welcome focus on what has become a national crisis, with estimates suggesting the UK is “missing” up to four million homes. However, in the race to plug this gap, the government must not neglect vital futureproofing efforts when it comes to building the homes the UK needs.
“Firstly, any new builds must be designed with climate resilience in mind. The UK government’s own estimates suggest the number of people in the UK significantly at risk of flooding is projected to increase 61% by 2050 under a modest warming scenario (2°C). This could reach 118% in a high warming scenario (4°C). Climate adaptation and resilience is a complex challenge, and it must be a central part of Labour’s considerations as to where and how it builds new homes.
“A second vital element, which we need to see clear policy on, is that Labour doesn’t have to focus solely on building new. Data suggests there are roughly one million empty homes in the UK. Retrofitting – i.e. upgrading – existing buildings not in use so that they’re fit for residence will help the government hit its housebuilding targets, while at the same time capitalising on the benefits of retrofit, such as reduction in use of new materials, supporting local supply chains, and reducing the need to build on areas like green belts.”
