For property agents, the potential acceleration in housing supply could help alleviate pressure on both the sales and rental markets. The past few years have seen housing completions fall short of national demand, with many areas experiencing record-low levels of stock.
Delivering more homes through SMEs and small-site regeneration may help improve availability and choice—particularly in locations currently underserved by large-scale schemes. Greater clarity and speed in planning decisions could also ease delays in transactions and reduce fall-throughs.
Backing smaller developments
A key part of the strategy is a £3 billion SME housebuilder guarantee scheme, which will underwrite loans and provide financial confidence for smaller developers across England. This marks a substantial investment in local builders, who often face difficulties accessing land and finance despite playing a vital role in housing delivery. According to UK Government statements, this move is designed to level the playing field and help diversify the housing market away from large-scale volume developers.
Ministers hope this will unlock thousands of new homes, particularly on small sites which are typically faster to develop and can support incremental growth in rural and urban communities .
Reforms to planning policy and Local Plan delivery
Alongside financial support, ministers have committed to a consultation on amending the National Planning Policy Framework (NPPF) to make housing delivery a stronger material consideration in planning decisions. This would strengthen expectations on local authorities to meet their housing targets and fulfil the commitments outlined in their Local Plans.
Housing Secretary, Angela Rayner, MP, has separately pledged to streamline the planning process by removing "bureaucratic hurdles” and “unnecessary delay,” to restore trust between communities and developers. She criticised the “broken” current system, stating that Labour would act decisively to increase the supply of affordable homes and ensure that public interest is prioritised.
Unlocking public land and supporting regeneration
Another core pledge is to release publicly owned land for development, including through Homes England partnerships. Brownfield regeneration will be a particular focus, and the government says it will prioritise sites that are already well-connected and have community backing. A “Call for Sites” will be issued to identify areas that can be brought forward quickly for development.
The UK Government also reaffirmed its support for the Affordable Homes Programme, while indicating it will explore further incentives to speed up delivery where planning is already secured.
Looking ahead
The success of these initiatives will depend on implementation. The rhetoric around “cutting red tape” and “unblocking housing delivery” will be judged by how quickly planning authorities, lenders, and developers to bring forward real schemes. Consultation outcomes and next steps for the planning reforms are expected later in 2025.
Propertymark will monitor developments closely to assess their impact. We will continue our work with government and industry partners to ensure that these reforms deliver real benefits for our members and the wider housing market.
Ultimately, we need a process that considers the wider picture, and it is important to factor in the creation of a workforce to construct much-needed new homes and a materials supply chain that brings efficiency and consumer value.
From planning to completion, each aspect of the process must work in harmony via sector-wide collaboration, as the challenge is not just about the physical laying of bricks.
