Creating new properties was a key aspect of the authorities’s Spending Review in June. There was the £39bn introduced in the Affordable Homes Programme and the launch of the National Housing Bank, which goals to unlock over £53bn of personal funding.
The pound indicators definitely attracted headlines, and prime minister Keir Starmer was fast to consult with this pledged funding in housing and infrastructure as being “transformational”.
But now the mud has settled, does the “transformational” declare stack up? And what extra do we have to know from housing minister Angela Rayner when her division comes beneath scrutiny from the Commons choose committee over the coming months?
For this to be actually transformational, the authorities should not solely promise extra properties — it should create the circumstances to construct them
Open Property Data Association chair Maria Harris argues that, if we’re going to name this funding ‘transformational’, it has to transcend bricks and mortar.
“For a long time, successive governments have targeted virtually solely on provide targets,” she says, “with out addressing the structural inefficiencies that make our housing system so painfully sluggish, inefficient and costly to navigate. To actually rework housing, we want digital infrastructure to take a seat alongside bodily infrastructure.”
Harris provides: “That means modernising how property information is accessed and shared, how planning functions are processed and the way transactions are accomplished. It’s encouraging to see housing and infrastructure funding prioritised however, until this consists of sustainable help and business mandating to implement digitisation of the homebuying and promoting course of, we threat lacking an enormous alternative.”
PEXA UK chief govt Joe Pepper concurs.
We want sensible help to extend entry, additional incentivise builders and finally ship financial progress
He says: “No one is denying we want extra reasonably priced housing provide to satisfy present demand, or that reforms to planning are wanted to hurry this alongside. But we’re not going to capitalise on any of the financial advantages of doing so till all of us acknowledge that the infrastructure that sits behind the transaction course of wants reform simply as a lot.”
He provides: “It was promising when the authorities promised digitisation however… there’s nonetheless a scarcity of consideration for the hidden infrastructure that sits behind the mortgage course of.
“Backlogs, lengthy waits for completion and fall-throughs are all a results of conveyancers struggling to seek out capability whereas working with an outdated system.”
Movera group chief govt Nick Hale thinks Starmer’s declare that Labour’s funding might be “transformational” is daring — and never with out justification — however whether or not it lives as much as the phrase will rely fully on execution.
How will the authorities guarantee supply throughout areas, not simply in high-growth city cores?
He says the headline figures are undeniably formidable however there are essential caveats.
“The housing funding is backloaded: the bulk doesn’t ramp up till 2029, simply in time for the subsequent normal election. In the close to time period, the programme delivers solely modest annual boosts — barely sufficient to cowl inflation and capability pressure.”
Hale provides: “Coupled with real-terms cuts in departmental day-to-day budgets, there’s an actual threat that native authority planning groups, regulatory our bodies and housing associations received’t have the operational capability to deploy funds at scale.”
Visionary Finance managing director Hiten Ganatra additionally picks up on the election timing.
“Is it potential to safe cross-party help to proceed with these initiatives even when/when one other political get together takes energy? Of course, the statements and commitments ought to positively be applauded and authorities intervention is properly overdue to supply extra housing inventory. However, constructing housing and infrastructure takes time, so we have to make sure that such plans is not going to be unpicked or reneged upon if one other get together replaces Labour at the subsequent election and even the one after.”
Over the summer season, the element (or lack of) will come beneath scrutiny from the Commons choose committee. What questions would the business wish to be put to the housing minister?
There continues to be a scarcity of consideration for the hidden infrastructure that sits behind the mortgage course of
Target Group gross sales and progress lead Mel Spencer needs to know the way the authorities will tackle planning delays and native opposition to improvement. Also, what incentives or partnerships are being created to make sure non-public builders contribute to reasonably priced housing targets? And how will the funding be distributed throughout areas to keep away from London-centric funding?
Hale echoes Spencer’s latter level.
“How will the authorities guarantee supply throughout areas, not simply in high-growth city cores? Will native authorities have the instruments and autonomy to tailor supply to native wants?”
Phoebus Software chief gross sales and advertising officer Richard Pike says it’s essential to know what contingency plans are in place ought to targets fall brief — notably for the housing market, the place lack of inventory and stretched affordability proceed to skew volumes in direction of remortgages and second-charge lending.
“For this to be actually transformational, the authorities should not solely promise extra properties — it should create the circumstances to construct them.”
To actually rework housing, we want digital infrastructure to take a seat alongside bodily infrastructure
Just Mortgages chapter managing director John Doughty’s query to Rayner could be: when will the authorities come to the desk with significant help for consumers, fairly than counting on lenders, builders and housing associations to do the heavy lifting?
Doughty provides: “Increasing provide will alleviate a few of the challenges however, as confirmed by many governments, it’s removed from a silver bullet.
“We want sensible help to extend entry, additional incentivise builders and finally ship financial progress.”
Over to you, then, Angela.
This article featured in the July/August 2025 version of Mortgage Strategy.
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