Optimism was in the air when we asked our sponsors and partners for their thoughts on life in the property world in 2024 and their hopes for 2025.
Our request came just as the latest NPPF revisions were announced and our experts, largely from our Editorial Board, were generally upbeat while a hint of cynicism could be detected around progress of improving the planning system.
David Bainbridge, director of Savills Central Planning, said: “A new version of the National Planning Policy Framework (NPPF) has become a relatively frequent event of late, given that we only received the previous version, authored by Michael Gove, last Christmas.
“However, with a new Government benefitting from a five-year term before it, and the strong emphasis on ‘growth’ and planning reform to deliver it, this NPPF has particular importance.
“The new NPPF has much in it that is familiar; the principle of ‘brownfield first’ that prioritises the re-use of urban sites and Local Plans as the mechanism by which local authorities determine the location of the new growth that is planned.
“However, there are also new elements that aim to deliver more homes particularly, including a new Standard Method for determining the level of local housing need that authorities need to be planning for and the wholly new concept of ‘Grey Belt’, which identifies those areas of Green Belt that don’t meet the common perception of this designation i.e. the poor quality areas of land often on the edge of existing urban areas.
“It is these new components that will need to work hard if we are to get to the levels of housing provision that the Government intends and which will start to resolve the housing crisis.
“There is though, more to come to drive this agenda further, including a new Planning Act. Inevitably, this will require a further revision of the NPPF such that we may well be doing this all over again this time next year.”
Jerry Muscroft, director of PJA, said: “As 2024 draws to a close I look forward to 2025 with great positivity and optimism, it should be a year of opportunities underpinned by the updated NPPF.
“At PJA we are focused on creating better places through great design and are therefore encouraged the NPPF has a greater emphasis on a vision led approach to transport and movement, high quality design as well as nature through biodiversity net gain.
“This offers us all a unique opportunity to create better developments that meet the current needs but also provide a lasting positive impact on our environment whilst creating sustainable communities for the future.
“The fear is that where development is seen to be imposed, rather than collaboratively planned, there will be greater resistant to change leading to further delays in meeting housing targets and addressing the housing need.
“There will also be a need for greater training to develop the skilled labour force at every stage of the process whilst also developing a supply chain to provide materials needed to deliver housing.”
Nina Lloyd, director, planning South East for Turley, said: “With the publication of the new NPPF last week, the property industry must now deliver on the Government’s goal and boost housing supply and accelerate economic growth.
“We need to plan holistically and consider our critical infrastructure to support growth. This is not just data centres and digital infrastructure, but also utilities and power which has been impacting some developments coming forward of late. Transitioning to net zero by 2050 should be at the forefront of strategic delivery.
“Whilst the national picture is clear, my hope for 2025 is that planning committee becomes modernised, we adopt a national scheme of delegation and there is formal training for committee members, as identified in the Planning Reform Working Paper.”
Ifti Maniar, planning director for WWA Studios, said: “The NPPF, at paragraph 62, reaffirms the Standard Method as the definitive approach for assessing local housing needs, removing the earlier ‘advisory starting point’ language. This means strategic policies must now align with housing needs identified through this method.
“However, in my opinion, the gap between ambition(370,000 homes/ year) and reality remains significant, with successful implementation dependent on resourcing and local co-operation.
“Overall, it is a very positive news! The new NPPF puts a lot of pressure on local planning authorities (LPA) to deliver housing in their areas or otherwise face speculative planning applications being allowed at appeal or Ministerial intervention powers.
“As a result, in 2025, many authorities will be shortly reviewing their Local Plans and looking for any opportunities for more housing to meet their own targets.
“This will open doors for developers to promote land through the plan-making process or possibly prepare a speculative planning application, in particular, where authorities are unable to meet their housing targets.”
Rob Biddlecombe, partner at Mills & Reeve, said: “From an environmental sustainability perspective, one of the big news stories of 2024 was the introduction from February of mandatory biodiversity net gain (BNG) in England.
“It’s fair to say that there have been a number of teething troubles arising from uncertainties associated with the scheme, for example around the BNG metric and gaps in official guidance. It is to be hoped that these will resolve as the regime matures.
“However, recent comments by the Prime Minister, criticising a controversial bat habitat mitigation measure linked to HS2 and by the Deputy Prime Minister that newts should not hold up the construction of housing risk, are sending mixed messages to the built environment sector on the importance of biodiversity in future.
“This comes as the Government’s latest UK Food Security Report has stated that long term decline in biodiversity is a pressing risk to UK food production. Nevertheless, with the Government intending to overhaul the planning system to accelerate housebuilding and deliver 1.5 million homes over this term of this Parliament, there seems an obvious tension between these competing concerns and some clarity on policy would be welcome.”
Alex Aitchison, managing director of Lincoln Property Company, speaking on behalf of the Station Hill joint venture in Reading, said: “2024 has been a transformational year for Station Hill with residential and office demand accelerating.
“The first phase Ebb & Flow residential rental community of 598 apartments at Friars Walk was completed in the Summer of 2024, and is already 80 per cent leased.
“In addition, at the end of November, we reached practical completion on the second phase, ONE Station Hill, the 275,000 sq ft of best-in-class workspace. This is changing the face of Reading and is already almost 60 per cent pre-let or under offer with global brands such as PepsiCo, PwC and NewFlex all due to be in occupation by the early part of next year.
“And, as people living and working in Reading will have noticed in recent weeks, the two acres of newly-created public realm, linking Reading Station to the town centre beyond have come alive with a selection of dramatic artwork installations – sculptures and murals specially commissioned for the Station Hill estate, creating a new art trail for the local community and visitors to enjoy.
“Station Hill has provided a distinctive new gateway and destination for Reading, that represents inward investment of some £50 million into social infrastructure and community public realm, delivering new jobs and new homes to the centre of Reading, whilst sensitively seeking to celebrate the town’s rich and distinguished cultural heritage to further instil a deep sense of local pride.
“With the strength of occupational demand for homes at Ebb & Flow and workspace at ONE Station Hill, we are looking forward to progressing the final phases of the scheme. It looks like being another momentous year ahead.”
Roger File, director of Pye Homes, said: “This has been a busy and successful year for us – not least at our Church Farm development in Radley, with year-on-year reservations more than doubling, and visits to view the homes up by over 30 per cent.
“This is affirmation of the growing demand for more energy-efficient homes, with features such as solar panels and air sourced heat pumps.
“This Autumn, however, we were disappointed that the new Chancellor decided not to freeze the Stamp Duty thresholds; keeping them at their current levels long term would have supported both first-time buyers and those selling their home and moving to a new property.
“Next year promises to be one of the busiest in our 97-year history; 2025 will see our legacy development at Park View, Woodstock, near completion; we’re also starting work on new developments at Hill Rise, Woodstock and at Welborne Garden Village, Hampshire, in partnership with the Buckland Estate.
“In 2025, the UK property industry will need to focus on sustainable development, affordable housing, and innovation in construction techniques to meet the demands of both housebuilders and homebuyers.
“There is a growing need for green, energy-efficient homes as part of the push towards net-zero carbon emissions, which will not only support the environment but also reduce long-term energy costs for homeowners.
“Additionally, we are yet to see significant improvement in the planning processes in particular the speed at which applications are processed, that consultees respond the delivery of affordable housing and infrastructure are funded.
“We also hope that the Government will be providing meaningful support for first-time buyers to help ease the growing issues around affordability. These measures will empower housebuilders to meet the increasing demand for new homes efficiently, while also making homeownership more accessible and sustainable for buyers.”
Tom Fraser, head of office at Savills Cambridge and a director in the firm’s development team, said: “Despite some challenging economic and political conditions the development land market in the East of England has proved robust over the last 12 months – and certainly an improvement on the previous year.
“However, two elections – both here in the UK and the US, uncertainty in the run up to the Budget and hesitation while people watched the Bank of England base rate, did cause some activity to slow.
“That said, there remained strong demand for sites where planning permission was already in place for traditional housing schemes, close to existing infrastructure and with good connectivity. Hertfordshire, for example, has been particularly popular and we have agreed several deals.
“Looking ahead, there’s a definite sense that confidence is starting to return among housebuilders – not least because the Government has made it clear that one of its priorities is the delivery of more homes – so I think we can move into 2025 with some optimism.
“Inflation appears to be stabilising, further cuts to the base rate are expected and house prices are forecast to increase, which should help to underpin further activity.
“However, there is a slight note of caution. While the changes to the planning system under the revised NPPF should stimulate more growth, it will take time for that to translate into increased housing delivery, so it may take a little time for momentum to build.”
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