‘Fewer cranes in the air’: Development consultancy responds to Autumn Budget

Brian Mullin, planning partner and head of multi-disciplinary development consultancy Marrons, said:

“Today’s Budget is sending mixed messages to the development industry. While there are some welcome measures to support housing delivery, it is unlikely to be viewed by much of the sector as a transformational package and the announcements do not fundamentally address the issues suppressing housing output.

“Removing biodiversity net gain (BNG) requirements on residential brownfield land will provide some stimulus but the increase in Stamp Duty Land Tax on rental income from April 2027 risks telling investors that we’re not interested in their money.

“The two measures pull in opposite directions. While the BNG relief is welcome, it won’t tackle the core viability issues compounding the decline in housing delivery. The tax increase is likely to adversely affect the build-to-rent market and further discourage investment, particularly on brownfield sites. The BNG relief alone will not be enough to offset this wider impact on delivery. Ultimately, we will see fewer cranes in the air as a result.

“The ‘Your First Home’ scheme is a welcome step towards improving affordability for first-time buyers but it is unlikely to provide the same incentive to the housing market as the former Help to Buy Equity Loan scheme. Help to Buy directly increased purchasing power and significantly expanded the pool of buyers able to access new-build homes.

“The First Homes scheme, by comparison, offers a permanent discount on selected properties for qualifying buyers but does not materially increase mortgage lending capacity or inject the same additional purchasing power into the market. Its scale and reach are therefore unlikely to generate the same volume of transactions or boost to housing delivery.

“The additional £1 billion-plus for social and affordable housing is a positive announcement. It should improve housing delivery, support developer sales rates, help viability and provide greater certainty in the market. However, it is not a panacea. Planning delays, high build costs, labour shortages and weak buyer demand remain significant barriers.

“The PlanAssist and wider planning digitisation measures are intended to improve efficiency within local planning authorities but they are unlikely to resolve the persistent performance challenges facing the planning system in isolation. Many councils continue to struggle with recruitment and retention, alongside a shortage of experienced planning professionals. 

“Digital tools should help process applications more efficiently but meaningful improvements in performance will depend on greater planning officer capacity, better resourcing and investment in technical expertise.

“Ultimately, there remains a significant question over whether the government’s ambition to deliver 1.5 million homes during this parliament can be achieved without further intervention to address the underlying constraints on housing delivery.”