After precisely one yr of the brand new Labour authorities, its greatest failures referring to the property market are ineffective planning reform and a scarcity of incentives for builders and buyers.
That’s in line with a survey from high-net-worth non-public shoppers, which carried out in June 2025 by specialist actual property lender and funding platform, ASK Companions.
Labour’s planning and infrastructure invoice contains measures to reform planning committees and obligatory buy orders.
The federal government has pledged to construct 1.5 million new houses inside 5 years, with proposals to loosen up planning guidelines, establish new websites for growth, reclassify elements of the inexperienced belt as “gray belt” land, and pace up planning approvals. Moreover, there’s a dedication to extend inexpensive and social housing inside new developments.
Daniel Austin, chief govt and co-founder at ASK Companions, mentioned: “After a yr below the brand new authorities, buyers stay pissed off by the shortage of significant planning reform and the restricted incentives accessible to drive growth.
“Our analysis reveals that planning delays, political uncertainty, and financial unpredictability proceed to behave as main limitations – regardless of manifesto pledges to speed up housebuilding.
“Nonetheless, over half of buyers plan to extend their actual property allocations over the subsequent 12 months, signalling confidence within the sector’s underlying fundamentals.
“Unsurprisingly, given the speedy world digitisation and development of AI, information centres are anticipated to supply the best funding alternative of all asset courses.
“Warehousing and logistics, and later-living housing additionally stood out as notably enticing prospects together with build-to-rent, co-living and pupil lodging.
“Actual property debt stays in excessive demand from buyers looking for secure earnings, capital preservation, and a level of insulation from wider market volatility.”
With a purpose to help and develop the UK actual property market, buyers imagine the three principal priorities must be to reform planning laws and processes, provide tax incentives for buyers and builders and entice worldwide funding into UK property.
Regardless of issues with the federal government’s first yr and chronic structural challenges, the bulk (51%) plan to extend their allocation to actual property over the subsequent yr, with information centres, warehousing & logistics, and later-life housing recognized as the best alternatives.
Austin added: “To really unlock the potential of the UK property market, buyers wish to see planning reform prioritised, alongside tax incentives for builders and insurance policies that entice worldwide capital. Delivering on these fronts would assist speed up growth, deal with the housing disaster, and guarantee actual property continues to drive financial development reasonably than maintain it again.”
