After precisely one 12 months 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 accordance with a survey from high-net-worth personal purchasers, which carried out in June 2025 by specialist actual property lender and funding platform, ASK Companions.
Labour’s planning and infrastructure invoice consists of measures to reform planning committees and obligatory buy orders.
The federal government has pledged to construct 1.5 million new properties inside 5 years, with proposals to calm down planning guidelines, determine new websites for growth, reclassify components 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 government and co-founder at ASK Companions, mentioned: “After a 12 months underneath the brand new authorities, buyers stay annoyed by the dearth of significant planning reform and the restricted incentives out there to drive growth.
“Our analysis exhibits 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 following 12 months, signalling confidence within the sector’s underlying fundamentals.
“Unsurprisingly, given the speedy world digitisation and progress 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 enticing prospects together with build-to-rent, co-living and pupil lodging.
“Actual property debt stays in excessive demand from buyers looking for steady earnings, capital preservation, and a level of insulation from wider market volatility.”
In an effort to help and develop the UK actual property market, buyers consider the three essential priorities needs to be to reform planning rules and processes, supply tax incentives for buyers and builders and entice worldwide funding into UK property.
Regardless of issues with the federal government’s first 12 months and chronic structural challenges, the bulk (51%) plan to extend their allocation to actual property over the following 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, 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 progress fairly than maintain it again.”
