Investor and Developer Confidence
Political uncertainty can rattle confidence in any sector, but the housing industry has responded to this ministerial change with cautious optimism. The swift appointment of Reed, coming just days after Rayner’s departure, minimised potential disruption. As one housing association chief noted, it was important the new secretary was installed quickly “to avoid uncertainty for the sector”. By moving decisively, the government sent a message that housing remains a core priority, helping reassure developers and investors that there will be continuity of focus. Indeed, sector leaders have taken heart that housing has “maintained its central place in the government’s agenda with a strong secretary of state in Steve Reed”. Simply put, the development community wants to know that the political will exists at the highest levels to follow through on housing promises. Reed will need to ensure that his department’s milestones, like the 1.5 million homes target, carry weight in Cabinet and translate into concrete policy support. This kind of top-level backing is critical for long-term investor confidence.
That confidence, however, depends not just on targets but on the day-to-day reality of how projects get approved and delivered. Here, consistent policy and reduced bureaucracy are key. In recent months, developers have warned that burdensome planning red tape and regulatory delays are undermining investor sentiment. The nascent Build to Rent Alliance, for example, reports that a slowdown in planning approvals contributed to an 18% drop in new BTR schemes, creating a “mild chilling effect” on investment in what should be a high-growth sector. Melanie Leech of the British Property Federation put it plainly: “planning reform is not enough, and we need to see real action to address viability challenges” so that the industry can reach its full potential. All of this suggests that developer and investor confidence hinges on tangible improvements in the development process, with fewer bottlenecks, clearer rules, and support in addressing cost pressures like rising materials prices or taxes on development (for instance, the sector is closely watching proposals to reform landfill tax, which builders fear could add costs to housing construction).
Reed’s early statements and the reaction of professional bodies indicate an understanding of this imperative. RICS has highlighted that housing and the built environment are “central to the UK’s growth agenda,” and that it is “essential that momentum for reform continues to unlock construction and give the sector confidence”. In other words, maintaining a stable, pro-development policy environment will be critical to keep investors on board and projects in the pipeline. We have observed first-hand how clarity (or uncertainty) in policy can sway the viability of developments. As trusted advisors to both private developers and public-sector promoters, we emphasise the importance of certainty, consistency, and communication from government. Our team brings integrated expertise, spanning technical engineering, commercial insights, and environmental know-how, which allows us to de-risk projects and find solutions even amid regulatory change. With Reed now at the helm, we are optimistic that a reinvigorated approach from the Housing Ministry can bolster confidence. And whatever shifts may come, we will be there to help clients adapt strategies, engage with policymakers, and keep their development ambitions on track.