Sector broadly welcomes proposals to unlock housebuilding
This week saw the publication of the much-anticipated and updated National Planning Policy Framework (NPPF), which confirmed the return of mandatory housing targets.
Under the plans, councils will be told they need to create plans to enable the UK to reach 370,000 homes a year, and in doing so reappraise their green belt boundaries and identify lower-quality ‘grey belt’ land.
The NPPF did include some changes to the draft published previously, with grey belt land now subject to an affordable housing provision which represents 15% above the maximum local authority requirement, up to a cap of 50%. In previous iterations the 50% provision was a blanket requirement.
We owe it to those working families to take urgent action, and that is what this government is doing. Our Plan for Change will put builders not blockers first, overhaul the broken planning system and put roofs over the heads of working families and drive the growth that will put more money in people’s pockets.
Kier Starmer, Prime Minister
The planning reforms were mostly welcomed by the industry, but the lack of support for buyers and funding for housing associations was identified as a concern.
Neil Jefferson, Chief Executive of the Home Builders Federation, welcomed the NPPF, but warned that: “demand for new homes is supressed by a lack of affordable mortgage lending and support for first-time buyers in particular is desperately needed.”
Further reaction is reported in Housing Today.
Meanwhile, Housing Secretary Angela Rayner confirmed this week that planning officers will be able to bypass committees to approve schemes without their permission.
Writing for The Sunday Telegraph, Rayner said that “unblocking the clogged-up planning system means providing greater certainty to developers that good quality schemes aligned with democratically agreed local development plans will be approved in a timely manner”.
Tender prices set to raise in 2025
Cost consultant Turner & Townsend has said that high demand and low supply across construction projects in 2025 will likely drive tender price inflation back up.
The firm is recommending that clients secure collaborative supply chains, forecasting that tender prices will rise 3%-3.5% for building work over the next two years.
Wage inflation is a key driver for the price increases, with employers having to pay an additional 1.2% in National Insurance contributions from next April.
Skilled trades such as plumbers and electricians have seen pay increase by 7% in 2024.
Martin Sudweeks, UK managing director of cost management at Turner & Townsend, said: “Every key sector identified by the UK government in its industrial strategy relies on construction to build and grow.
“To achieve this, we need to stem the wave of insolvencies and shrinking labour force.
“We must make sure talent is not lost as contractors close – recruiting or reskilling them to bring them back into the workforce.
“At the same time we need investment in the next generation of skills – looking beyond traditional construction and education routes, across to tech sectors and different pools of talent that will help revolutionise the sector, embrace digital solutions, and drive productivity.”
Women in housebuilding initiative announces mentor pairings
An initiative established by the All Party Parliamentary Group has announced the pairings for its inaugural mentorship programme, with 25 women set to be mentored by female leaders in the industry.
The I am a Housebuilder initiative has partnered women who are already in the construction industry with experienced professionals, with mentees ranging in age from 23 to 58 across a wide range of disciplines.
According to I am a Housebuilder, several of the mentees have already set up their own housebuilding or construction businesses “and hope to learn from the mentors how to further develop their skills to enable them to scale their businesses”.
A full list of the mentees and their pairings can be found on Housebuilder.
Housing View 