Delivering the homes we need: actions for change

Solutions the Labour Party can introduce to unlock housing supply

• The development of much-needed purpose-built rental accommodation could be sped up by reintroducing the Multiple Dwellings Relief, which was scrapped by Jeremy Hunt in March
• With electricity use expected to increase by 50% by 2035, the Government, National Grid and energy providers can work together to unlock capacity
• The development of a Built Environment Skills Taskforce could also ensure Britain has the required skills to deliver on its housing and infrastructure plans

The Royal Institution of Chartered Surveyors (RICS) has today released solutions to unlock housing supply, including the reform of tax laws to incentivise more investment in the UK’s build-to-rent sector, unlocking grid blocks to housing and development, and to create a Built Environment Skills Taskforce to ensure the country has the skills required to meet housebuilding targets.

The body, which represents 130,000 members worldwide, is promoting the solutions which would secure delivering of needed homes  as part of Delivering the homes we need: actions for change. The recommendations would provide the Labour Party with useful policy levers for achieving economic growth and addressing the UK’s housing crisis.

The Labour Party has pledged to build 1.5 million homes over the next five years. To speed up the development of the UK’s burgeoning build-to-rent sector, which attracted £2.6 billion of investment in the first half of 2024, RICS is calling for the Chancellor to reinstate the Multiple Dwellings Relief. Abolished by Jeremy Hunt in his 2024 Spring Budget, the relief zero-rated bulk acquisitions, making purchases by investors of build-to-rent properties more affordable. There is early evidence that the decision to abolish the policy is already slowing down investment at a time when the UK is in urgent need of more purpose-built rental accommodation to cater for Generation Rent.

Unblocking grid blocks to housing would also increasing housing output, RICS says. Housing developments are having to compete for power against energy-hungry low-carbon technologies, data centres and transport networks, which are becoming increasingly electrified. In a country where electricity use is expected to increase by 50% by 2035, as millions of electric cars and heat pumps are plugged in, transmission and distribution networks will require significant upgrades.

To overcome these challenges, RICS has indicated where Government, Ofgem and all parts of the energy sector can commit to expanding energy infrastructure, prioritising those areas where the Network Capacity Map is blocking future development of much needed homes.

An acute shortage of skilled labour is also acting as a significant block to development. Brexit, a sharp drop in apprenticeship starts and growing retirement rates have combined to create the perfect storm, which is hindering Britian’s building ambitions.

RICS is suggesting the creation of a Built Environment Skills Taskforce to map future labour needs to meet house building, retrofit and net zero needs. This will 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.

When combined, these recommendations could help boost housebuilding and economic growth. In her first speech as Chancellor, Rachel Reeves laid out plans for sweeping changes to the UK’s planning system. Reeves said her work on planning reform, in a bid to deliver Labour’s promised 1.5m homes in five years, alongside deputy Prime Minister Angela Rayner, was already “underway”.

The Chancellor said Labour will reform the National Planning Policy Framework (NPPF) by the end of the month, including restoring mandatory local housing targets; end the “absurd” ban on onshore wind in England; and prioritise energy projects in the planning system.

Reeves also said the government would “create a new taskforce to accelerate stalled housing sites in our country”, beginning with some 14,000 homes, and employ 300 new planning officers in local authorities, as outlined in the party’s manifesto.

Beyond the three recommendations outlined, RICS’ paper also highlghts the following solutions to the industry challenges:

• The delivery of local infrastructure to support housing and communities. Reform and properly resource the application of Section 106 agreements and Community Infrastructure Levy (CIL), to deliver infrastructure locally, while still providing a clear route to building affordable homes. 
• All future housebuilding to benefit from low-carbon technology to be net-zero ready and adhere to the Healthy Homes Principles. The Decent Homes Standard must be applied and enforced across the rental market, with strict viability and exemption guidance. 
• An evidence-led review of the Greenbelt policy to transparently consider the benefits and trade-offs that apply to its future operation. 

Stamp duty funds to ringfenced to finance the development of affordable and social housing.

Simon Rawlinson, Chair of the Knowledge and Practice Committee, RICS, said:

Tina Paillet FRICS, President Elect of RICS, commented: