Growth through house building: Northern real estate industry responds to a spring statement

Opposition politicians were willing to stop calling it an “emergency budget,” but what does Rachel Reeves' speech mean for the Northern development and construction industry?

“40-year highs for home construction”

The Budget Responsibility Office says reforms in the planning system will allow 1.3 million homes to be built over the next five years. Reeves says he will place the workforce at the “touched distance” of the target of the 1.5m home.

When Reeves' statement focused on the construction industry, it was very emphasised that NPPF's reform and planning and infrastructure bills unlocking the potential for major home building across the country.

She summed up the objectives of the Spring Budget as follows: “Build the UK, promote economic growth, spend money on people's pockets.”

The £600 million investment in planning reform, defense investments and training skilled construction workers has led to the mood if optimistic and cautious across the industry.

Henri Murison, CEO of Northern Powerhouse Partnership, said: “We are used to the government's 10-year infrastructure strategy and spending review to turn north the investment needed to increase long-term productivity from Bradford regeneration to zero infrastructure such as carbon capture in humber.

“This is about growth mission-driven spending and planning reforms, which directly leads to better paying jobs and counteracts the clean power mission and a wider journey to net zero.”

“We've been working hard to get the most out of our business,” said Erol Erturan, managing director of West Yorkshire-based Adept Civil & Structural Consulting Engineers.

“We also welcome £600 million investments in construction skills. It will take time to change the tide, but training up to 60,000 new workers is an important step to ensure that the project is delivered on time and on budget.

This is what Hughie Clarke, Director of Business Development and Marketing at architecture consultancy Edge: “The recovery in the commercial and residential sector has slowed, and market uncertainty has erod investment and sector confidence. However, an additional £2.2 billion in defense funding provides new opportunities for SMEs to engage in UK defence infrastructure projects.

“In the long term, plans to “get the country's buildings again” are even more promising. Future planning and infrastructure billing should help accelerate the delivery of infrastructure and housing projects. Meanwhile, an investment of £600 million in construction skills is a much-needed step.

“Reducing inflation to 2% by 2027 provides hope that cost pressures could eventually begin to ease. The fluctuations in material costs have been an important barrier to moving projects off the ground. Stability gives us confidence.”

Affordable housing and the private market problem

Following the announcement of further investments in affordable housing, there was a clear sense of security mixed with long-term concerns from the social housing sector. Following a commitment of £500 million in October and £350 million in February, Reeves this week said using an additional £2 billion would allow for another 18,000 homes nationwide.

“We're looking forward to seeing you in the future,” said Stephen Sorrell, director of social partnerships for Affordable Extra Care Housing Provider Priority Housing. “Before this announcement, there were concerns about a potential delay in this announcement.

“Bridge fundraising should help us maintain momentum while we await news of alternatives to our affordable housing program in June.”

Cllr John Merry, chairman of major cities and deputy mayor of Salford, said: “Major cities are working with the government to fulfill their mission to stimulate growth by boosting housing construction, but this must be part of the long-term strategy to address the UK's widespread housing needs…

“Major cities have long sought realistic home building targets, permanent retention of the right to purchase receipts, and affordable rent models that reflect social rent levels rather than increasing market prices.

While reflecting concerns about rental prices, Kate Lay, a partner at Manchester-based Landwood Group, said:

“The market is already tense, and the reality is that there are increasing challenges for landowners. High interest rates and rising costs have already made business rates less profitable. Business rates continue to be a concern for commercial landlords as well.

Peter Jackson, managing director of Bolton-based Seddon Housing Partnership, reiterated the attention of the affordable housing sector in its long-term planning. work.

“We advocate that the affordable housing sector is funded and considered just like infrastructure, and raise the end of the start-up programme. It's really encouraging to see a huge commitment of £600 million in training the next generation of people coming to our industry.”

And Lee Bloomfield, CEO of the Bradford-based Manningham Housing Association, said the impact that welfare cuts announced in the budget could have on affordable housing tenants is “the lowest income that many have already struggled to meet the end, and we fear that cutting welfare budgets will make this challenge difficult.”