Members of the UK Property Forums Editorial Board have given a cautious thumbs up to Chancellor Rachel Reeves’ announcements about the Government’s plans for growth last week.
Some doubts were expressed about what could be achieved – and the likely timescales – but our experts gave an overall welcome to the speech, in particular plans for a third runway at Heathrow and the Oxford-Cambridge Growth Corridor.
Philip Waddy, managing director of WWA Studios, said: “Delighted to see renewed support for the Ox-Cam Arc, previously killed by a lack of strategic planning and leadership between authorities.
“With a champion in the form of Patrick Vallance and a commitment to complete the East West Rail project, there is much to be excited about.
“A good outcome will depend upon the ability of Government to deliver planning reform and I look forward with anticipation to the forthcoming Planning and Infrastructure Bill.
“Labour’s significant majority should enable bold reform, although it’s worth remembering that their majority in Parliament doesn’t reflect votes cast across the UK. They could be in for a rough ride, if not now, then in five years time.
“One reform I would dearly like to see is the removal from planning of technical standards more suited to control via the Building Act. Planners simply aren’t trained to assess energy usage or carbon emissions.
“The same applies to fire design which has been pushed into spatial planning where previously it was a regulatory matter. Simplify the upfront risks and costs of development – then, once planning permission is received, developers will gladly spend time and effort on the detail. Simples!”
Dan Channer, group managing director of Haslams Estate Agents, said: “The Chancellor’s handbrake turn from pessimism to optimism is welcome even if the new objectives are long-term in nature and challenging to implement.
“Our business is doing up to double the levels of transactions in 2025 so far, compared to last year, so it seems that our buyers and tenants are sufficiently optimistic. The most relevant policy for the property market, at least in the short-term, is the Bank of England’s base rate decision on February 6. It would help Mrs Reeve’s glass-half full agenda if the rate was cut.”
Tom Nash, real estate partner for Mills & Reeve in Cambridge, said: “Many of the announcements will have an immediate, significant impact for our clients.
“We are pleased to see the support for bringing forward the new Cambridge Cancer Research Hospital, a landmark development we have advised on for several years. The proposals addressing water scarcity issues which have blighted planning applications for so long will also be welcomed.”
Laura Ludlow, real estate lead for Mills & Reeve in Oxford, said: “The Growth Commission for Oxford has been long called for. As advisers to many developers, investors, universities and SciTech occupiers across the corridor, we recognise the opportunities that this collaborative approach to overcoming barriers to development and driving sustainable growth will bring.”
Jerry Muscroft, director of PJA, said: “Whilst the Chancellor’s announcement to create a third Heathrow runway and to create ‘Europe’s Silicon Valley’ between Oxford and Cambridge are welcomed the environmental impact will have to be fully assessed again.
“Investment around Oxford to support an increase in life sciences and the southern half of the silicon valley would help boost delivery of these much-needed facilities to help kick-start the economy.
“The proposals to build more reservoirs will help improve water scarcity issues, needed to increase housing and support the level of development proposed. If the Chancellor is to achieve these goals it will require cross-party support and, I am sure, boost several years of further consultancy services prior to any construction commencing.”
William Nassau-Lake, partner for Boyes Turner, said: “The big-ticket announcements concerning international trade and large national infrastructure projects are clearly welcomed but these will take years to deliver and for the benefit to be felt.
“The Chancellor repeated the intention to reform the planning system which echos statements made for decades – the industry remains sceptical. It was disappointing that there was no commitment to increase funding for the planning departments of local authorities and there was also little detail as to how planning reforms may help deliver smaller sites and boost the SME house building sector.
“One source of light was the acknowledgement that the existing requirement to provide environmental mitigation has caused, and continues to cause, major obstacles to housing delivery so the announcement of a centralised environmental restoration fund to remove this blockage is welcomed.”
Nina Lloyd, director, planning South East for Turley, said: “The Chancellor’s speech chimed with the Prime Minister’s promise earlier in that week for the Government to be ‘taking on the Nimbys and a broken system that has slowed down our progress as a nation’.
“No doubt, the Government is committing to growth and planning reform to facilitate these aims!
“Connectivity is the promised growth catalyst which will drive and boost our economy. Not just within the South East, but there is opportunity to connect more efficiently and effectively to the world, breathing fresh life into previously stalled infrastructure projects and proposals.
“Whether that is a new third runway at Heathrow, East West Rail line (connecting Oxford to Cambridge as part of a renewed Oxford-Cambridge Growth Corridor) or the A428 Milton Keynes to Cambridge upgrade, connectivity is at the forefront of the growth strategy.
“I believe there is no better time than now to invest in the South East. Businesses, investors and entrepreneurs help drive economic growth with infrastructure being a catalyst for new homes and much needed social infrastructure.
“Increased connectivity, whether that is road, rail or aviation, and certainty of connection through data, utilities and services, as part of this Government growth agenda presents huge opportunities for the South East.”
David Barden, regional managing partner for the Thames Valley for Vail Williams, said: “The Chancellor’s support for a third runway at Heathrow is welcome news for the economy and the property market, particularly in the South East and the Thames Valley region.
“Heathrow is a key driver of regional and national growth, yet it has long operated at near capacity, leaving it with limited resilience when delays and incidents occur.
“By comparison, other major European airports have greater capacity and more flexibility, making them more attractive for international businesses—particularly those reliant on freight.
“Without additional runway capacity, the South East risks falling behind in attracting global investment and capitalising on emerging market opportunities.”
“The economic impact of a third runway will be significant, helping to make the Thames Valley even more attractive to investors and international businesses.
“The expansion will drive further demand for logistics space around the airport, as well as additional office and residential accommodation in the wider markets, creating tens of thousands of new jobs.
“However, businesses need certainty on timelines. This project has long been discussed and whilst the Government announcement is positive, it could still take years – potentially decades – to come to fruition, and without clarity on delivery, long-term planning for businesses and investors becomes difficult and the economic growth is held back.
“There are also questions around the infrastructure required to support growth, particularly in terms of industrial land supply, energy demands, and planning restrictions.
“With land around Heathrow already heavily developed, policymakers must ensure the right frameworks are in place to enable sustainable expansion.”
Steve Kosky, director, planning East for Turley, said: “The general thrust of the Chancellor’s growth ambitions for the Cambridge region is to be welcomed. The Chancellor is correct that the region is of key national importance and that water infrastructure is a major hindrance to development.
“However, the inference that the Environment Agency have now lifted their objections to all new development in Cambridge may be premature.
“Whilst some notable major developments have been recently allowed on appeal, such as at Cambridge North and Darwin Green. These decisions relied on anticipated efficiencies in the forthcoming Water Resource Management Plan (WRMP) and, as such, it is too early to draw any firm conclusions from these decisions.
“For example, if the draft WRMP is delayed, or if there is delay in the processes required to deliver the required efficiencies, then a Grampian condition or a refusal may be justified for future major applications, until the promised new water infrastructure can be delivered.
“In the meantime, the growth pressures on Cambridge will continue to magnify, notably as a result in the very significant uplift in the annual housing requirement for the Greater Cambridge Local Plan area, which opens the door to further speculative planning applications, even in the Green Belt areas, if a robust Grey Belt case can be made on suitable sustainable sites.
“It will be interesting to see how the combined efforts of Lord Patrick Vallance and Peter Freeman translate into a firm spatial growth strategy for this part of the Oxford-Cambridge Growth Corridor to deliver on the Chancellor’s expectations.
“In the meantime, I expect further major proposals to emerge ‘from the ground up’ to inform the long-term growth strategy for the area.
“As such, I would encourage site promoters to respond to the Chancellor’s call to arms and continue to be proactive, rather than reactive, in this region.”
Guy Parkes, partner at Vail Williams, said: “The Chancellor’s support for the Oxford-Cambridge corridor in her speech is welcome news, as improving connectivity between these cities does hold significant potential to unlock economic growth for the South East and the UK as a whole.
“Dubbed ‘Europe’s Silicon Valley’ by the Chancellor, the proposed corridor could bring Oxford and Cambridge’s world-class universities, thriving life sciences sectors, and cutting-edge technology industries together.
“By creating new transport links and infrastructure, this initiative could create a larger, more globally competitive region for these sectors—one that attracts increased international investment, growth and demand for commercial property such as offices, labs, and industrial units.
“Paired with the proposed expansion of Heathrow and the additional capacity a third runway will bring, the South East could strengthen its position as a hub for global business and innovation.
“However, while the Government has signalled its intent to improve transport and housing between these two hubs, the details of this support remain unclear. For the initiative to be truly successful, we need more investment in infrastructure upgrades—particularly in places like Oxford—alongside planning reform to encourage private sector development.
“A dedicated rail link between Oxford and Cambridge has been discussed for years but has yet to materialise. To fully unlock the corridor’s potential, a comprehensive rail network, potentially including new stations in Oxford, will be crucial.
“Without this, the opportunity to create a thriving economic corridor that can compete on a global stage may be missed.”
Daniel Geoghegan, chief executive of Bicester Motion, said: “We wholeheartedly welcome the Chancellor’s commitment to unleashing the potential of the Oxford-Cambridge Growth Corridor and championing this remarkable region.
“We are privileged to have outstanding talent at Bicester Motion with more than 50 companies and 500 people working here engaged in some of the most groundbreaking innovation and discoveries.
“Our focus is on pioneering advancements in future mobility and we remain dedicated to continuing to invest in our estate in providing new flexible workspaces and state-of-the-art HQ buildings and amenities where like-minded automotive and aviation brands are flourishing and discovering the mobility solutions required for tomorrow. Together, we are spearheading investment, innovation, growth and jobs.
“The Government’s identification of the corridor between Oxford and Cambridge will provide huge opportunities for all stakeholders including local and national interests. Bicester’s location within the growth corridor will add meaningful strength to the whole, leveraging the power of the region in technology.”
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