The season of giving is upon us, and thus the season of wish lists. Whilst individuals might be after new slippers, at LSL Land & New Homes we’re curious about what would make it onto the Christmas lists of those in the new homes industry this year. What can we dream of to make house building more efficient and successful? And if housebuilders make the nice list, might they actually get the presents they hope for?
Local Support
The mission of the so-called ‘NIMBY’ (Not In My Back Yard) is generally opposed to the work of house builders. So perhaps top of developer’s lists would be a more positive response from local communities regarding new housing developments across the UK. Fortunately, most people recognise the need for more housing; a recent survey revealed that no more than 20% of British voters would ‘almost never’ support housing developments. The key cause for public concern at housing development is the provision of the necessary infrastructure alongside it; whilst housebuilders have a role to play in contributing to infrastructure development, government efforts to invest in national infrastructure will also help to convert more NIMBYs to YIMBYs (Yes In My Back Yard).
More Land
The creation of new land is probably beyond even the magic of the festive season, but unlocking more land opportunities is a critical wish for housebuilders looking ahead. The government has provided some signs of hope in this department, with early signs such as reforms to the National Planning Policy Framework (NPPF). This includes providing a clearer definition of ‘grey belt’ – that it is previously developed land in the green belt that fails to meet the criteria of what green belt land aims to do. Unlocking more land opportunities will be essential if 2025 is going to start a 5-year housebuilding boom.
Speedy Planning
A housebuilding boom will be more of a Christmas cracker bang if planning doesn’t speed up significantly. The government has pledged to hire 300 new planners nationally, but that will need to make a big difference quickly. Data in June found that the number of new homes receiving planning permission had reached a decade low of 230,000 units in a 12-month period, 45% down from the highs of the late 2010s. The complexities of the planning process will need tackling across the board to prevent it being a bottleneck on the all-important housing pipeline.
New Towns
This year, the perfect stocking stuffer for housebuilders could satisfy the demand for development land, whilst remaining on positive terms with the public – New Towns. 32 new towns were created under the original policy between 1946 and 1970, and whilst new towns have continued to materialise across the country, they haven’t matched the success of that era. The new government has shown a step in the right direction by announcing a New Towns Taskforce, aimed at exploring proposals for large-scale developments of at least 10,000 homes. Set to wrap up by Christmas, we can hope 2025 delivers on this wish.
A Boost for Buyers
If only chocolate coins could contribute to affordability tests! Inflation has improved in the last year, and mortgage approvals have seen a 49% increase year on year (to October 2024), but the market is still not where housebuilders might like. One present that might be more deliverable would be a replacement for Help to Buy. A win-win-win, Help to Buy supported almost 400,000 buyers into homes, helped developers make sales, and even turned a £2 billion profit for the government. Although plans to build 1.5 million homes in the coming years are promising, potential first-time buyers facing high rents will likely need additional support. In the meantime, developers and buyers do have a gift that keeps on giving: Shared Ownership.
Securing construction workers
Presents don’t get made without elves and homes don’t get built without construction workers and skilled tradespeople across the country. Recent research conducted before the recent election found that over 250,000 extra construction workers are needed by 2028 to satisfy projected construction demand. This was before the government came in with ambitious targets for new homes, green infrastructure and more. Almost a third of construction employers cite recruitment as their key challenge, making it clear that even with the new Skills England Bill, demand will remain high in the coming year. Are there any spare elves available?
While this wish list may be ambitious, it’s important to remain optimistic. The future presents challenges, but the economic outlook is improving, and progress is being made in planning policies. Let’s hope the government brings more good tidings as we look toward a bright new year!
What would be on your wish list? Could LSL Land & New Homes help you secure it?
Sources
- The Guardian – Fewer than one in five UK voters are ‘hard nimbys’, finds survey
- LandTech – Changes to the Standard Method and the Impact on Housing Delivery
- Inside Housing – New Towns Taskforce seeks views on suitable sites for developments of 10,000+ homes
- Town & Country Planning Association – New Towns
- Dataloft – Mortgage approvals rocketing up
- Dataloft – Inflation and interest rates: big improvement from a year ago
- Building – Housebuilders urge the government to launch a replacement for closed Help to Buy
- CITB – Over 250,000 extra construction workers required by 2028 to meet demand
- Home Builders Federation – Planning approvals for new homes plummet to decade low
