Can the New Housing Secretary Deliver on 1.5 Million New Homes?

The UK government, under newly appointed Housing Secretary Steve Reed, has pledged to build 1.5 million new homes in England by 2029, addressing what Reed terms a "housing crisis". This ambitious target, part of the Labour Party's manifesto, comes with a commitment to reform planning processes and sanctions for developers who fail to meet construction timelines. However, industry leaders express skepticism, citing significant challenges ahead, including rising costs and regulatory pressures.

Last updated: 14 October 2023 (BST)

Key Takeaways

• Steve Reed has set a target of 1.5 million new homes by 2029.
• The pledge is part of Labour's general election manifesto.
• Concerns exist over rising costs and regulatory challenges for builders.
• Reed plans to introduce an "acceleration package" to speed up planning approvals.
• There is ambiguity about how housing for asylum seekers will affect the market.

The Housing Crisis in England

The housing crisis in England has reached a critical point, with a growing number of people struggling to secure affordable housing. Reed's assertion that the only way out of this predicament is to "build, baby, build" highlights the urgency of the situation. The government's commitment to constructing 1.5 million new homes reflects a response to this escalating issue, aiming to provide more houses for a population increasingly burdened by high living costs.

Reed's Vision for Housing Development

During his recent interviews, Reed elaborated on his vision for the housing sector. He aims to eliminate barriers that hinder construction, encouraging collaboration between the government and developers. Reed's commitment to sanctioning developers who delay projects signifies a shift towards a more proactive approach to housing development. He emphasised the importance of swift action, stating, “I don't want the developers dragging their feet.”

Challenges Facing Developers

Despite the ambitious targets, Reed's government faces a myriad of challenges. The Home Builders Federation has warned of increasing regulatory costs and taxes that have compounded the pressures on the sector. Garry Dixon, a construction business owner in Bedfordshire, noted the dramatic rise in material costs, pointing out that the price of bricks has surged from around £0.80 to £1.20 each in just three years. This highlights the financial strain on builders and the potential impact on housing affordability.

Regulatory Pressures

Developers are also grappling with regulatory pressures that delay planning applications. Current legislation aimed at reforming the planning system is in progress, with hopes that it will streamline processes and facilitate faster approvals. The government's ability to navigate these complexities will be critical in meeting its housing goals.

Training and Skills Development

Another significant challenge is the need for skilled labour in the construction sector. Dixon suggested that increased investment in training and apprenticeships is essential to equip workers with the necessary skills. He noted, “It’s not a quick fix,” emphasising the long-term nature of developing a skilled workforce to support the housing drive.

Impact of Asylum Seeker Housing on the Market

Reed's housing strategy also addresses the sensitive issue of asylum seekers. The government's commitment to cease housing asylum seekers in hotels by the end of the current Parliament raises concerns about potential pressures on the already strained housing market. There are fears that this could lead to asylum seekers being placed in houses in multiple occupation (HMOs), further complicating the housing landscape.

Proposed Solutions for Asylum Housing

To mitigate these concerns, Reed indicated that the government is exploring various options, including the use of military sites, prefabricated buildings, and warehouses for housing asylum seekers. The goal is to implement solutions that do not exacerbate the existing housing crisis, which is already challenging for many citizens.

Political Context and Future Outlook

Reed's recent appointment followed the resignation of Angela Rayner amid a tax-related controversy. His transition into the role comes with the weight of expectations, particularly as Labour seeks to demonstrate its capability to deliver on housing promises. The political climate remains tense, with opposition figures accusing Labour of being unable to fulfil its housing commitments.

Despite these challenges, Reed's determination to work in partnership with developers signals a potential shift towards a more collaborative approach in the housing sector. As he develops the "acceleration package" aimed at speeding up planning applications, the success of these initiatives will be closely monitored by both industry leaders and the public.

What Happens Next?

The coming months will be crucial for Reed and his housing agenda. With legislative changes pending and the construction industry facing mounting pressures, the government's ability to address these challenges will be pivotal in determining whether it can achieve its target of 1.5 million new homes by 2029. As the situation develops, stakeholders will be watching closely to see how effectively the government can navigate the complexities of the housing market.

FAQs

What is the goal of the UK government regarding new housing?

The UK government aims to build 1.5 million new homes in England by 2029, as part of its strategy to address the ongoing housing crisis.

What challenges do developers face in meeting housing targets?

Developers face challenges such as rising material costs, regulatory pressures, and delays in processing planning applications, all of which can hinder construction timelines.

How is the government addressing the housing of asylum seekers?

The government is exploring options like military sites and prefabricated buildings to house asylum seekers, aiming to do so without adding pressure to the housing market.

What is the "acceleration package" proposed by Steve Reed?

The "acceleration package" refers to Reed's plan to expedite planning applications, thus facilitating quicker construction of new homes.

How did the political reshuffle affect Steve Reed's role?

Steve Reed was appointed as Housing Secretary following Angela Rayner's resignation. He aims to drive forward the government's housing agenda in this new capacity.