Following the King’s Speech today, we’ve compiled some comments from across the PBSA sector on their responses to planning, housing and the built environment.
Fred Lerche-Lerchenborg, CEO, Lavanda
“Labour’s plans will come as music to the ears of many in the property industry, but Sir Keir will need to muster the same resolve as Clement Attlee’s government to deliver on his promise of 1.5 million new homes this parliament.
“As it has been with countless previous pledges by various governments to reform Britain’s antiquated planning system, the devil will ultimately be in the detail. Labour’s commitment to building more homes is a positive step, but it is long overdue and purely aspirational without a concrete bottom-up plan for delivery, meaning it currently lacks credibility.
“For example, in tier-one cities like London and tier-two cities like Sheffield, relaxing planning restrictions for larger scale student accommodation and Build to Rent developments would target very specific pockets of undersupply. This would unlock a glut of institutional capital and enable the rapid delivery of large-scale communities of 200 to 500-plus units.
“The new government also needs to understand and embrace the recent step-change in property management innovation and technology. This is key to driving greater efficiencies in property management operations and, consequently, to creating more flexible and more affordable rental housing.
“Sir Keir should put together an advisory board that comprises leaders and experts from both real estate and technology to inform and advise on what’s possible, as well as share best practices from across the global industry. This will ensure that such lofty housing targets are anchored in robust, deliverable plans that leverage world-class technology and innovation, and secondly are addressing the right needs across the country.”
Theo Plowman, Assistant Director of Policy (Real Estate), British Property Federation
“We’re pleased to see the Government push ahead with the long-awaited Renters’ Reform; for too long the reforms have caused uncertainty for tenants and investors alike. The Bill in the last Parliament had achieved broad support, and key to this were a minimum term of 6 months, a promise of court reform, and a carve out for Purpose-Built Student Accommodation and the wider student sector. We believe that the Bill should retain these aspects and therefore the support of the industry.”
Tom Lloyd-Jones, Chief Investment Officer, Zenzic Capital
“It is positive that planning featured prominently in today’s King’s Speech. It seems local government planning committees will still be the arbiters of decisions but the modernisation of these is contemplated. It will be interesting to see whether this will include the introduction of external appointments, such as those with real estate or planning specialisms, to supplement the existing knowledge base and make decision making quicker and better informed, while delivering the increased capacity the government has outlined as a key driver of growth.”
Graham Hayward, Managing Director, Housing Hand
“The King’s Speech emphasises Labour’s commitment from its manifesto to move ahead quickly with rent reforms in the UK. The Renters’ Rights Bill – previously the Renters (Reform) Bill – is likely to progress to royal assent swiftly under the new government, substantially in its prior form, other than a faster removal of section 21 notices.
“This largely will not affect the purpose built student accommodation sector but has the potential to impact significantly on the ability of HMO landlords (those who own houses in multiple occupation) to manage the terms and certainty of tenancy periods.
“Disappointingly, the King’s Speech has been largely silent regarding support of university fee caps and especially international student access and ongoing attendance. These are major contributors to the UK economy and the country’s international reputation, meaning they are issues that will require attention sooner rather than later.
“Perhaps the initiatives around new building rules and planning will help the rental accommodation supply in the student sector. This is way behind demand historically. The student supply chain and demographics need to be managed carefully to ensure investment does not moderate if a rapid rebalance occurs.
“Another interesting element mentioned in the King’s Speech was the expanded use of digital identification, especially for international tenants. Currently, the only way to authorise a right to remain is through the share code mechanism. While effective, this is time-consuming and slow. Housing Hand already uses digital ID techniques for all tenants and so can attest not only to their efficacy, but also to the efficiencies they introduce when it comes to accessing accommodation.”
Kathryn Jump, Partner and lLving Sector Co-head, Shoosmiths
“Today marks a pivotal shift towards a more pro-development approach. This recognises the importance of creating more quality, sustainable, and mixed-tenure homes, boosting residential supply across the UK, and understanding that this is central to delivering the economic growth the country needs.
“The reinstatement of mandatory housing targets and the strengthening of devolution powers are crucial first steps in accelerating housing provision. If the government aims to meet its 1.5m new homes target, it is essential that it continues to collaborate with the real estate industry to shape the next stage.
“To build confidence that the announced changes will boost the housing market as the new government hopes, the details of the legislative and policy changes need to be understood by the market. This needs to happen quickly and must begin with the proposed Planning and Infrastructure Bill. Any uncertainty around the details of the changes, and their consequences, risks depressing, rather than accelerating, the delivery of new homes.
“Planning reform, in particular, must be approached carefully to ensure that changes streamline, speed up, and better resource the system, rather than overhauling it, which could cause industry confusion and slow down any uptick in market activity. One aspect that must be considered closely is how revising the National Planning Policy Framework -expected later this year – will impact local people, as it could lead to a surge in legal challenges against the granting of planning permissions in this brave new world. Comprehensive public and industry consultation is key to avoiding the risk of legal challenges in court.
“Regarding the vision for a series of new towns, it is essential that we take lessons from the garden city movement: establishing long-term funding solutions, providing local authorities with the right financial resources and professional support, and building trust between the public and private sectors to support true cross-sector working.
“The real estate industry has remained resilient during one of the most challenging periods in recent times. It stands ready to deliver, but the mission to ‘take the brakes off Britain’ hinges on getting this next phase right – forming an approach to delivery that works for all and creates the mixed-tenure homes the UK desperately needs.”
Joe Lister, Chief Executive, Unite Students
“We welcome comments set out in the King’s Speech reiterating Labour’s commitment to planning reforms, including streamlining the process, recognising that this is key to unlocking economic growth and helping create much needed housing.
“We’re committed to providing affordable student accommodation as part of our offer. Building more PBSA can support the delivery of the Government’s ambitious housing targets, by freeing up privately rented homes for families.
“This Labour Government has shown that it’s prioritising planning reform, and we’ll work closely with them and local authorities to help them achieve this.”
Bilal Ahmed, Founder and Executive Chairman, Sama Investment Group
“The King’s Speech has brought potential good news for all of us who are involved with Shariah-compliant real estate development. Among the 40 Government bills announced there are encouraging highlights and some challenges ahead.
“Although we know that new ministerial teams are still coming to grips with the full scope of their responsibilities, the King’s Speech signalled some important broad intentions, emphasising a desire to accelerate the delivery of high-quality infrastructure and housing through planning reforms.
“This is great news for developers, and those who can quickly prepare sites with planning consultants – swiftly transforming proposals into clear, actionable strategies – are poised to gain the most from these announcements.
“The new Planning and Infrastructure Bill is set to accelerate housebuilding and infrastructure delivery by streamlining the delivery process for critical infrastructure and reforming compulsory purchase compensation rules. This means that local authorities will have their planning committees modernised, and their capacity increased in order to provide more predictable services to developers and investors.
“The English Devolution Bill devolves powers to local authorities, regional and metro mayors, and devolved bodies with the aim of creating a dynamic economy as a key driver of growth. Devolution is to become the default setting, removing the need for negotiations over the powers of local bodies. This could be beneficial to real estate developers such as Sama who are keen to work in partnership with local authorities to create long-lasting value for investors and communities.
“More generally, the National Wealth Fund Bill, which is a key part of Labour’s manifesto capitalised with an initial £7.4 billion, will establish a permanent National Wealth Fund to make transformative investments across the whole of the UK’s economy. Economic growth would of course benefit all of us, and that has a very positive effect on the real estate development industry.
“The King’s Speech has set forth an exciting and bold vision for the UK’s future, but the challenge now lies in the Government’s ability to transform these initiatives into effective actions that successfully balance economic growth, sustainability, and local community interests.”
