The Queen’s Speech: Property Market Aims to Build Back Faster

Earlier this month, Her Majesty delivered her 67th Queen’s Speech outlining several reforms in the pipeline for the property market. The UK government is striving to transform the property market in order to ensure a strong post-pandemic recovery.

The Queens Speech touched on several key points, which will, directly and indirectly, affect the property market. The real estate sector welcomes the adjustments as the market takes another sustainable step towards a positive and promising future. 

“With the Government focused on ‘levelling up’ the UK and bringing forward new legislation to modernise the planning system to achieve this, the property sector will undoubtedly play a fundamental role in supporting communities across the country to build back better.” – Melanie Leech, Chief Executive, British Property Federation.

Automating Planning Permissions

It is no secret the property market is facing a chronic housing shortage, resulting in the continuous inflation of property prices. Speeding up the planning process and simplifying the system will benefit the sector considerably. At present, it can take an average of seven years to update a local plan. Cutting out the red tape will reduce this time significantly. 

Planning permissions can majorly prolong construction timelines, resulting in a domino effect of delayed schedules. Dividing developments into categories will create a smooth and efficient planning process. The categories are split into the following:

Protected areas

Growth areas

Renewal areas

For instance, the system will grant permission automatically on land designed solely for new homes, schools, and hospitals. This is because these developments will be categorised under ‘growth’. Therefore, eliminating the chance for local authorities to reject the plans. 

Therefore, this new systemic approach with automated planning approvals will result in developments being built faster. Without compromising the quality of new builds. As a result, the gap between the substantial imbalance of supply and demand will narrow.  

Digitalising Systems and Embracing Technology

In order to implement an effective and strategic system in the property market, it is vital to adapt to the traditional way of working. This essentially means modernising the approach to future-proof the sector. The current planning system is a slow, tedious and manual process. Embracing a digital approach, and transforming the document-based process into a digitalised service will prove to be efficient and convenient. Therefore, increasing engagement from residents and local authorities.

The Queen’s speech outlined many of the plans proposed by the government which will positively impact the sector. The new legislation reforms under planning, renting and leasehold will pave way for many aspiring homeowners to step foot onto the property ladder. 

Simplifying the planning process and embracing technology will tackle the substantial lack of housing supply by speeding the building process. The new rules will bring forth additional housing at a much quicker pace. Thus, correcting the imbalance between supply and demand which has been intensified by the extension of the stamp duty holiday and incredibly low-interest rates. 

This effective housing strategy will result in increased homeownership across the regions. The measures solidify the government’s objective to ‘build back better’ to recover from the pandemic. As the UK aims to build back faster, there will be more properties available for people to buy, invest in and rent. This is a positive step towards increasing housing stock availability across the UK to tackle the chronic housing shortage. 

In terms of investing, one thing that has been made evident over this ambiguous year is that property investment holds its position as one of the most stable assets. Reducing the supply and demand imbalance will create a sustainable marketplace. Building more homes will increase the number of renters in the market as more properties become readily available.