Why Now Is The Time to Invest in Property Development
The UK’s property development sector is set to undergo a significant transformation in light of upcoming housebuilding planning reforms.
The new Labour government has set out ambitious planning regulations and aims to create an environment ripe for investment. Let’s dive into why this means there’s never been a better time to enter the market.
UK planning reforms: A catalyst for growth
Keir Starmer’s Labour government has outlined a comprehensive agenda of legislation designed to accelerate housing and infrastructure projects. In real terms, this means it will now be easier to get planning permission, which has been one of the main barriers to housebuilding over the last 14 years.
The main piece of legislation behind the goal to build 1.5M homes over the next 5 years is the Planning and Infrastructure Bill. This bill aims to streamline the planning process and expedite the delivery of quality housing and infrastructure projects.
A key part of these reforms is to massively simplify the consent process and modernise planning committees. These changes are designed to reduce delays and make the planning process faster and more efficient. That means more development with less red tape.
The government has also laid out plans to reform compulsory purchase compensation rules. This will mean fair but not excessive compensation for landowners, unlocking more sites for development than ever before.
How housebuilding reforms for 2024 are boosting supply
Labour’s housebuilding reforms for 2024 will work in conjunction with relaxed planning laws to address the chronic shortage of housing in the UK.
A shift will be made back towards centralised housing targets, with 300,000 new homes targeted per year across the nation. This marks a shift away from decentralised planning decisions being made by local authorities which hold up development.
There are also significant plans for the development of brownfield and “grey belt” land, including less desirable parts of the green belt. This will still preserve the most valuable and culturally significant green belt spaces but will mean underutilised land is being used for development.
These strategies are expected to present a huge boom in property development, as well as make housing more accessible for first-time buyers and renters alike.
Positive impact on property investment
These housebuilding reforms for 2024 present an amazing opportunity for potential property investors. The streamlining of planning processes and increased space for development sites will lead to a surge in construction projects.
The demand for property development investing will see a correlative surge, and affordable housing and infrastructure will actually create a more stable and predictable investment environment.
That means lower risk for people thinking of getting into property investment for the first time. This safety is compounded by the long-term stability in the housing market created by the targets for the next five years.
Investors can also expect better returns as the supply of new houses increases to meet the demand created by the government’s targets.
There’s also good news for investors who want to build their portfolio of sustainable development projects. The reforms to green belt boundaries and lifting of the onshore windfarm ban signal a broader commitment to sustainability, and sustainable construction will form a core part of the government’s new housing and infrastructure plans.
Investing in the future
As you can see, now is the ideal time to seriously consider getting into property development. The changes to planning processes and increased space to develop on are set to bring the market into a new golden age.
If you’re ready to learn more, get in touch with Daniel James Group. We provide property ROI opportunities from shrewd group investments into rescue, renovation and new build schemes, both here in the UK and overseas.
