Support package seeks to boost development in the capital
The Ministry of Housing, Communities and Local Government (MHCLG) has announced a package of support in an attempt to unlock a stagnant housebuilding market in London.
Under the package, projects delivering at least 20% affordable housing will be eligible for a temporary ‘fast-tracked planning route’. Previously, the threshold was 35%.
In a policy paper published by the Government and the Mayor of London, schemes which provided at least 20% affordable housing on private land would be accelerated and not have to undertake a viability assessment.
The Mayor of London will also be granted new powers to ‘fast-track’ housing, including being able to call-in housing schemes of 50 homes or more “where boroughs are minded to refuse”.
The proposals are subject to consultation.
Reed says job should be “on the line” over housebuilding pledge
Housing Secretary Steve Reed has said that his job should be “on the line” over the Government’s pledge to build 1.5 million new homes in England.
In an episode of Panorama on the BBC, Reed insisted that the Government would “absolutely” meet the goal, stating: “My job should be on the line if I fail to meet my target. I expect to be held to account.”
However, Neil Jefferson, Chief Executive Officer of the Home Builders Federation, said that the Government’s target was “looking increasingly distant”.
Meanwhile, 20 construction industry organisations have signed an open letter to the Prime Minister, calling on him to rethink Government plans to reform apprenticeships.
Led by the British Woodworking Federation, the letter urged Keir Starmer to rethink the proposal to reduce the overall time it takes to deliver an apprenticeship to eight months, and reform the assessment process.
Infrastructure adoption causing an “unfair system” – HBF
New research from the Home Builders Federation (HBF) has found that a growing number of new housing developments are being left with roads, sewers, and drainage that are ‘unadopted’ by the relevant local authority or utility provider, creating a “fragmented, unfair system” for homeowners and builders alike.
The findings show that of the developments of ten or more homes built in the last three years, just 10% of sites have had their roads adopted by local authorities, leaving 90% to be managed by private companies. Additionally, a staggering 97% of new sewers and 98% of sustainable drainage systems also remain unadopted, years after construction.
Local authorities will not adopt roads until sewers are formally adopted. Freedom of Information data from the UK’s six largest water companies shows that only 3% of sewer adoption applications were completed over the past three years.
No material recovery until 2026, says CLC
The Construction Leadership Council has warned that there is no significant recovery of building material sales expected until next year.
In an update, the firm stated that the third quarter of the year has shown “flat or declining sales of building materials compared to 2024”.
However, product availability is generally good, and prices have remained stable.
The consensus within the group is that this remains one of the most challenging trading environments in over ten years, characterised by sustained weakness in demand, margin pressures, and limited signs of recovery.
Many businesses are facing short-term financial difficulties and decreased confidence, with forecasts suggesting that the market as a whole is expected to remain essentially flat in the near future.
Construction Leadership Council
Report calls for fixed affordable housing values
A new report has recommended that Section 106 agreements should fix affordable housing values at the planning stage to improve market efficiency and prevent a bidding war.
The report, Making Social Rent Homes Viable, was published by Homes for People We Need and backed by firms such as L&Q and Vistry.
It noted that the current Section 106 market is “not operating well”, and that it is a “perversity” that grant-funded housing associations have to bid against each other for Section 106 homes.
The report calls for £18.8bn of subsidy each year to fund 90,000 social rented homes.
Meanwhile, Legal & General announced this week that it is committing £2bn to deliver 10,000 new social and affordable homes by 2030.
The financial giant said that the investment programme would also create around 24,000 jobs.
Developer and supply chain updates
Persimmon has announced the death of its founder, Duncan Davidson, who died on 19 October, aged 84.
Davidson founded the firm in 1972. Persimmon is currently the fourth-biggest housebuilder in the UK.
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Developer CG Fry has won a ruling from the Supreme Court this week, which could see thousands of homes unlocked.
Somerset Council had blocked the third phase of a 650-unit scheme after it said the developer did not meet nutrient neutrality rules.
CG Fry appealed, stating that as the development was granted planning permission before the nutrient neutrality rules were applied, construction should continue.
The Supreme Court agreed, opening the door for thousands of developments in a similar position.
Housing View 