UK General Election – a new government for the built and natural environment

The 2024 General Election has seen the Labour Party return to UK Government for the first time in 14 years.

Going into the election, RICS called on all parties to commit to:

• A housing delivery strategy that meets targets and creates safe, affordable, high-quality homes for owners and renters.
• Revitalising communities, unlocking growth and creating an attractive investment environment.
• Developing a low-carbon, highly-skilled Britain that supports our energy security needs by investing in energy-efficient buildings, a renewable-centric national grid and sustainable infrastructure.

Economic stability and energy security form two of Labour’s six priorities as they go into government – which highlights the importance the built and natural environment will have in their agenda.

Underpinning this will be the importance of increasing housing, supporting businesses and high-streets, and investing in sustainable infrastructure.

Housing

At the centre of their plans will be the creation of 1.5 million new homes. To achieve this, the public and private sectors would be required to deliver 300,000 new homes a year – a figure not hit since the 1960s, which was a time when local councils played a far greater role in housing delivery.

Supporting this work, Labour proposes to hit the ground running with a series of major planning reforms, including the introduction of new housing targets and 300 new planners, a Grey Belt strategy to stimulate development, and changes to land acquisition that will be essential to meeting their new town proposals. This must be delivered with clear leadership and the sector cannot afford a repeat of the past where we have had 16 housing ministers since 2010.

Commercial property and high streets

Commercial real estate plays a fundamental role in fuelling economic growth, creating jobs, and supporting communities through revitalised high streets. These properties are not just buildings; they are essential, diverse spaces where businesses, from shops and offices to factories, operate and thrive.

The RICS 2022 Commercial Real Estate Impact Report illustrates that commercial real estate directly generates £66bn in GVA, over £15bn in tax revenues and employs more than 1 million people.

However, with valuations dropping by as much as half due to a high interest rate environment, both small and large investors are having to grapple with tightening yields and margins. Therefore, policymakers must reform business rates, which have become too high, complex, and burdensome, and threaten to suppress growth and discourage much needed inward investment.

Energy and infrastructure

The new government has committed to the creation of Great British Energy and a National Wealth Fund.

Great British Energy will focus on scaling up and accelerating low-carbon technologies while building on the models of public energy ownership seen elsewhere. Importantly, this will help the UK decarbonise but it must also increase our National Grid capacity to support future housing needs.

The National Wealth Fund builds on the work of levelling up but focuses on modern and heavy infrastructure – including investments in hydrogen and carbon capture, giga-factories, and more environmentally friendly industrial production.

Over the coming years, this will likely reshape many parts of the built environment, with ambitious ideas and will require the support of surveyors to deliver effectively.

Skills

Policymakers must also address the skills shortage - otherwise the UK will be unable to meet its construction, infrastructure and property needs.

At RICS, we are calling for the creation of a Built Environment Taskforce to support a long-term vision for the sector. The body should be responsible for mapping future labour needs to meet house building, retrofit and net zero needs. This will also include a review of early-years education engagement including the introduction of a Built Environment GCSE in England, and an analysis of public sector skills retention and recruitment - including shared service planning models.

Justin Young, CEO of the Royal Institution of Chartered Surveyors, said:

“On behalf of the Royal Institution of Chartered Surveyors, I am delighted to congratulate Labour on their election win. As Labour prepare to appoint ministers in the coming days, and look to department structures, it is vital that they bestow an urgency to translate the plethora of promises made over the last five weeks into sound and workable policy.

Policymakers must introduce in a timely manner a programme of policies that speed up development and add significant resource to planning departments up and down the country. This will be particularly pertinent in Labour’s quest to achieve economic growth; many studies have agreed on the positive correlation between GDP growth and the availability of homes. If housing delivery is backloaded towards the end of parliament, then the electorate may not see benefits quickly enough.

RICS and our members look forward to working with the Labour government to create a greener, more efficient, and highly skilled Britain.”

What do the results mean for housing and planning, join our webinar to reflect on the new government 30 July - https://ola.rics.org/enrol/index.php?id=4387.