Andy Burnham's first day as Prime Minister has seen a flurry of calls from the property sector to address the UK's long-standing housing crisis. With the nation facing rising costs, lengthy transaction times, and dwindling affordability, industry leaders are urging the new administration to tackle these challenges head-on.
At his inaugural statement from Downing Street, Prime Minister Burnham pledged to increase council home construction and work towards eradicating rough sleeping, outlining a comprehensive 10-year plan due later this year. This announcement has sparked swift responses from professional organisations, trade bodies, and estate agents eager to shape the government's approach to housing.
The sector is particularly concerned about the efficiency of the home buying and selling process, with transactions averaging 120 days and one in three sales falling through, as data from June revealed. Justin Young, chief executive of RICS, highlighted that unnecessary costs, uncertainty, and stress plague both buyers and sellers, with his organisation committed to assisting the government in driving momentum behind recently announced reforms aimed at simplifying this process.
Stamp duty has also been identified as a critical factor affecting market circulation. Research from Jackson-Stops suggests that abolishing stamp duty could potentially bring over 300,000 owner-occupied homes onto the market across England within less than a year. This comes as economic uncertainty has delayed moving plans for 42% of individuals, contributing to a 35% rise in auction volumes as landlords offload properties.
The sector is stressing the importance of robust infrastructure and sustained investment. Mr Young of RICS underlined that delivering an increased supply of quality, affordable homes alongside strengthened infrastructure and supporting a transition to a lower-carbon economy will necessitate stable, long-term, and evidence-led policymaking. He also highlighted the need for local authorities to be equipped with professional skills, resources, and support to translate the Prime Minister's ambition into tangible results.
Nathan Emerson, chief executive of Propertymark, echoed these sentiments, stressing that a diverse housing mix must be delivered with a regional focus, underpinned by strong local infrastructure. He stated, “Building homes is the challenge, building well-designed, functional communities must be the goal.”