Mixed feelings emerged when UKPF asked partners and sponsors for their thoughts on Chancellor Rachel Reeves’ Spring Statement.

There was disappointment at the Government’s reduced target of 1.3 million new homes by 2030 but optimism that forthcoming legislation will support the property and construction industry.

Dan Channer, group managing director for Haslams Estate Agents, said: “The most relevant news from the Spring Statement preceded the Chancellor by several hours – it was the inflation rate coming down to 2.8 per cent.

“If this leads to a cut in the Bank of England base rate in May it will help buyers and sellers and landlords more than anything announced in the Spring Statement.

“We may see some of the increased defence spending coming into Berkshire, but otherwise we do not expect the fundamentals of the Berkshire property market to change after today.”

Will Nassau-Lake, development partner for Boyes Turner, said: “As a leading property law team in the Thames Valley, we welcome Rachel Reeves’ plans to reinstate house building targets, as outlined in the Spring Statement.

“This focus on increasing housing supply is essential to tackling the UK’s housing crisis and providing much-needed affordable homes.

“Clear targets can drive investment, streamline planning, and help developers navigate the market.

“However, these targets must be supported by practical measures to overcome challenges like land access and planning delays.

“We are committed to supporting clients through the evolving property landscape, ensuring they can meet these targets while managing the legal complexities of development.”

Damian Read, construction director for Pye Homes, said: “While it is pleasing to hear the OBR’s prediction that planning reforms will allow 1.3m more houses to be built over the next five years, we were hoping to hear more from the Chancellor’s Spring Statement in terms of measures and policies to combat the slowdown in growth which is hitting our economy so badly.

“As she mentioned in her speech, in order to build these new homes, more people with the ‘right skills’ will be needed. The construction sector – and housebuilding in particular – is a key catalyst to getting the UK economy moving in the right direction, and bridging the skills gap is key to help drive housing delivery.

“We welcome the Chancellor’s announcement of a £600 million skills package that will fund the training of 60,000 construction jobs in tackling the skills shortage. The number of people wanting to work in construction is declining and this needs to be urgently addressed.

“Apprenticeships play an important role in this, and as an employer with a thriving apprenticeship programme, we encourage any incentives for both employers and young people to explore this career pathway.”

Ifti Maniar, planning director for WWA Studios, said: “The Chancellor’s Spring Statement reinforced planning’s ‘crucial role’ in driving economic growth, with the OBR’s recognition offering renewed optimism.

“Yet challenges remain—underfunded planning departments, high planning fees and financial contributions, unpredictable committee decisions and overall economic growth – which continue to hold SMEs back.

“The downgraded target from 1.5m to 1.3m new homes was disappointing, especially without significant parallel investment in labour, materials and infrastructure.

“While the OBR’s housebuilding outlook provides reassurance, in my opinion, reform cannot be achieved without significant additional resource. The Government’s £2 billion commitment to affordable housing and £625m for construction skills are welcomed as positive steps to ‘get Britain building again’ and support short-term sustainability.”

Ella Murfet, associate director for Turley, said: “The delivery of 1.3m homes over the next five years is encouraging, albeit a noted shortfall in the 1.5m target in the Government’s pro-growth agenda.

“There is still considerable work to be done, however, to deliver planning reform and come close to achieving this, still ambitious, level of growth.

“Additional resource for local planning authorities and timely determination of applications, critically including subsequent conditions, are key to supporting this measure of sites coming forward for development within the timescales.”

Emma De Meyer, principal associate for Mills & Reeve, said: “The key theme from the Spring Statement was one of ‘going further and faster’ and for the real estate industry that translates into opportunities for growth in the housing and innovation sectors.

“Much has been made of the Government’s plans to boost housebuilding over the past few months with forecasts of 1.3m new homes by 2030.

“The Chancellor’s Spring Statement built on that by allocating resource and addressing how those targets might be achieved.

“The statement highlighted that planning reforms already in progress (including the Planning and Infrastructure Bill and the National Planning Policy Framework) are predicted to contribute an additional 170,000 homes over the next five years by streamlining the planning process.

“The Office for Budget Responsibility has estimated an increase in GDP as a direct result of planning reform of 0.2 per cent by 2030. In addition, the statement introduced new initiatives to train up to 60,000 construction workers going some way to address and close the skills gap which may jeopardise delivery of such ambitious targets.

“Another key focus for the Government since election has been supporting the UK’s innovation sector. The Spring Statement was no exception and contained a pledge to increase defence spending by £2.2bn in the following financial year.

“Increased spending on defence is likely to boost manufacturing, aerospace and technology sectors, result in growing demand for space within those areas of the UK with established clusters supporting those operators as well as growing the industrial and logistics markets.”

Paul Vicary, head of South East for DevComms, said: “Looking beyond the media and political focus on cuts to welfare and benefits, there were actually some encouraging elements in the Chancellor’s Spring Statement and the associated growth forecasts by the OBR for the planning and property sector.

“The OBR conclude that Rachel Reeves’s planning reforms could permanently increase GDP by 0.2 per cent in 2029-30, (an additional £6.8bn for the economy), and then 0.4 per cent, (or £15.1bn), by 2030.

“The OBR adds that housebuilding will reach a 40-year high, hitting 305,000 homes a year by the end of the forecast period. This would deliver 1.3m homes in the UK over the next five years, which is within touching distance of Labour’s manifesto promise to build 1.5m homes in England within this parliament.

“In the context of a gloomy economic picture overall, it is clear that housing growth (alongside a renewed commitment to defence spending) will be essential to deliver the economic growth the Government and the country is looking for.

“Alongside the recently published Planning and Infrastructure Bill and the Government commitment to back ‘builders, not blockers’, the need to deliver growth through sustainable development and infrastructure reaffirms the level of opportunity in areas like the Thames Valley.

“The national message is clear – growth through development is a priority and the Government will do all it can to facilitate it. Those with a stake in property and planning in the Thames Valley have a real opportunity to shape this agenda, delivering economic prosperity and positive change for the whole region.

“It is important that we communicate this message effectively at the local level with planners and communities in which we all work.”​

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