Key facts
- Angela Rayner has returned as housing secretary, prompting calls from housebuilders for swift action on planning reform.
- The UK government faces a significant deficit in its target to build 1.5 million homes before the next general election.
- The housebuilding sector is struggling with soaring construction costs, dampened demand due to mortgage rate hikes, and numerous profit warnings.
- Key industry figures express optimism about Rayner's return, citing her previous commitment to increasing housing supply.
- Specific industry concerns include the impact of regulatory costs, planning challenges, and the upcoming building safety levy.
Housebuilders have urged Angela Rayner to prioritize reforms and address economic headwinds upon her return as housing secretary. The sector faces significant challenges in meeting the government's target of building 1.5 million homes, with only 204,000 completed in the year to March.
The industry has been hit by soaring building costs due to the Iran war and reduced demand from higher mortgage rates. This has led to numerous profit warnings and a slowdown in land acquisition by major firms like Berkeley and Barratt Redrow. Vistry and Crest Nicholson recently reported substantial first-half losses.
Despite these difficulties, industry figures expressed optimism about Rayner's reappointment, recalling productive collaboration during her previous tenure. They are hopeful she will expedite measures to boost housing supply and address ongoing issues.
Key industry bodies and companies are advocating for specific policy changes, including a new equity loan scheme for first-time buyers and the potential abolition of stamp duty for new purchasers. Concerns have also been raised about the impact of the upcoming building safety levy on smaller builders.
Meanwhile, Vistry, which has shifted its focus to partnerships with local authorities and institutional landlords, sees an opportunity to contribute to a promised large-scale council house building program.