After precisely one 12 months of the brand new Labour authorities, its largest failures regarding the property market are ineffective planning reform and an absence of incentives for builders and traders.
That’s in accordance 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 chill out planning guidelines, determine new websites for improvement, reclassify elements of the inexperienced belt as “gray belt” land, and pace up planning approvals. Moreover, there’s a dedication to extend reasonably priced and social housing inside new developments.
Daniel Austin, chief govt and co-founder at ASK Companions, stated: “After a 12 months underneath the brand new authorities, traders stay annoyed by the shortage of significant planning reform and the restricted incentives obtainable to drive improvement.
“Our analysis exhibits that planning delays, political uncertainty, and monetary unpredictability proceed to behave as main limitations – regardless of manifesto pledges to speed up housebuilding.
“Nonetheless, over half of traders plan to extend their actual property allocations over the subsequent 12 months, signalling confidence within the sector’s underlying fundamentals.
“Unsurprisingly, given the speedy international digitisation and development of AI, knowledge centres are anticipated to supply the best funding alternative of all asset courses.
“Warehousing and logistics, and later-living housing additionally stood out as significantly engaging prospects together with build-to-rent, co-living and pupil lodging.
“Actual property debt stays in excessive demand from traders searching for steady earnings, capital preservation, and a level of insulation from wider market volatility.”
With a purpose to assist and develop the UK actual property market, traders consider the three most important priorities must be to reform planning laws and processes, supply tax incentives for traders and builders and entice worldwide funding into UK property.
Regardless of issues with the federal government’s first 12 months and protracted structural challenges, the bulk (51%) plan to extend their allocation to actual property over the subsequent 12 months, with knowledge centres, warehousing & logistics, and later-life housing recognized as the best alternatives.
Austin added: “To actually unlock the potential of the UK property market, traders 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 improvement, deal with the housing disaster, and guarantee actual property continues to drive financial development slightly than maintain it again.”
