Risk Vs Reward: Labour’s ambitious plans for stalled housing developments

Labour’s plans to allow local authorities to take control of stalled housing sites signals bold intent to tackle the UK’s housing shortfall. With ambitious targets and mounting pressures on infrastructure and supply chains, the true challenge will lie in balancing delivery urgency with realism. Here, Simon Toplass, group chief executive at Pagabo, weighs in on the risks, rewards and how delivery can be achieved realistically.

Labour’s plans for placing the control of stalled housing back in the hands of local authorities are bold. However, with such high targets to reach by 2029 and housing projections currently falling short by nearly two million, placing the UK within ‘touching distance’ of the target according to chancellor, Rachel Reeves, decisive action will be essential if we are to come close to this target.

We know the benefits of increased housing delivery, from improved affordability to reduced overcrowding and although this new approach from Labour sets these in our sights, there must be an air of caution considered as we embark on the journey.

An all guns blazing approach will bring a lot of change and positively affect local communities, but with rapid development also comes apprehension. With public sector resources across of healthcare and education sectors feeling the strain already, communities will be cautious of how increases in delivery will further affect overcrowding and additional strain on resources.

Communication will be key here if councils are to unlock stalled developments and accelerate delivery; communities must be brought along through consistent, open dialogue, especially via transparent tools like progress reports, allowing builders and councils to strike that key balance between growth and community character.

Pressure on the supply chain must also be considered. As the construction sector continues to battle skills shortages and labour issues, the pace of development must align with industry capacity. Builders need to plan not just for speed but also consider how supply chains will cope with an increased expectation for delivery.

Infrastructure also cannot be an afterthought. A laser focus on housing numbers risks overlooking essential supporting infrastructure and placemaking, both of which require parallel funding and planning. It will be interesting here to see how Labour’s expectations evolve, especially as to where ownership lies if developments are stalled and deadlines hindered. How much mercy are house builders truly going to be at if supply chains or infrastructure project partners struggle to keep up? Where does the blame, and therefore penalties, lie?

There is no doubt that there are more pieces in the puzzle that we as a sector must consider. The ambition is welcome, but success will depend on balance and realism. Navigating these changes must be a top priority for developers as we work toward greater certainty in delivery.

From a framework perspective, the clarity of purpose this policy brings could be a real strength. In frameworks, such as the Developer-Led Framework we manage and deliver on behalf of Cumbria, Northumberland, Tyne & Wear NHS Foundation Trust, we expect stronger delivery expectations and fewer long-stalled projects. This is also supported by the adaptable nature of the framework, where agility and ability to work in a fast-paced nature are key characteristics, while also remaining a fully compliant route to delivery – benefitting both partners and communities with the overarching goal of increasing certainty.

Looking forward, in line with Labour’s optimistic targets, the support this decision can have on development delivery and housing in the UK is significant. Once the waters have settled, the positive societal benefits of housing can be seen on the horizon.

From here, we must look further, with developers, councils, housebuilders and the government needing to take stock of the considerable social value impact their work is having and managing this effectively. We need to measure outcomes as well as outputs, with platforms such as Loop a way to track and manage these social value successes effectively – to truly understand what the end goal of 1.5 million new homes means in practice – not just in numbers, but in lives improved.

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