Red Tape Threatens Labour’s Housing Ambitions: Over 1,200 New Flats Left Empty
A recent investigation by Sky News has revealed that over 1,200 newly built flats across England remain unoccupied due to delays in approvals from the Building Safety Regulator (BSR)—a body established in the wake of the Grenfell tragedy to oversee safety in high-rise buildings.
Despite the government’s pledge to deliver 1.5 million new homes this parliament, developers are warning that the BSR’s sluggish processes are undermining progress. In one striking example, a block of 99 flats in Acton, West London, has stood empty for more than a year due to a sign being two millimetres too small—triggering a 14-month delay in regulatory sign-off.
The regulator, which is transitioning from the Health and Safety Executive to the Ministry of Housing, has faced criticism for failing to meet its own 12-week approval targets. The proportion of applications processed within that timeframe has dropped from 47% to just 32% in six months.
Developers say the lack of clear guidance and communication from the BSR is causing significant financial strain. Jon Spring, Managing Director of Fairview Homes, noted that delays of up to 12 months are making projects unviable, with tens of millions of pounds tied up in stalled developments. Estate agents are also reporting that some developers are now avoiding high-rise projects altogether due to the uncertainty.
While the government has announced reforms and is recruiting 100 new staff to address the backlog, industry leaders argue that unless the regulator’s mandate is aligned with housing delivery goals, the crisis will persist.
For professionals across the new homes sector, this story underscores the urgent need for streamlined safety approvals, transparent processes, and collaboration between regulators and developers to ensure that homes don’t just get built—but get occupied.
Council Launches Campaign to Buy Private Homes for Social Housing
In a bold move to tackle a growing housing crisis, East Renfrewshire Council has launched a campaign encouraging homeowners to sell directly to the local authority—before listing their property on the open market.
The initiative, run in partnership with Barrhead Housing, aims to acquire 20 homes to be repurposed as social housing. The council is offering up to home-report value from a chain-free cash buyer, allowing sellers to avoid estate agent fees and multiple viewings.
Cllr Danny Devlin, Housing and Environment Convener, described the council as “the perfect buyer” for those looking to sell, adding:
“Our aim is simple – we want to increase the number of council homes available to local people. This is just one of the ways we’re working to tackle the local housing crisis we declared last year.”
The urgency is clear: since 2018, homeless applications in East Renfrewshire have surged by 53%, compared to a 10% rise across Scotland. As of autumn 2024, 350 households were accepted as homeless and awaiting accommodation, with nearly 200 in temporary housing, including B&Bs.
Barrhead Housing’s Chief Executive, Lorna Wilson, said the campaign is a key part of a strategic agreement with the council to boost housing supply, support vulnerable residents, and contribute to regeneration and carbon reduction.
For developers, estate agents, and housing professionals, this campaign signals a growing trend of councils stepping into the private market to secure homes for social use. It also reflects the wider national housing emergency declared by the Scottish Government and echoed by cities like Edinburgh and Glasgow.
House Price Growth Slows as Property Tax Reform Looms
Annual house price growth in the UK slowed to 2.1% in August, according to the latest figures from Nationwide Building Society. This marks a slight dip from July’s 2.4% and reflects a broader cooling in the market, with month-on-month prices falling by 0.1%.
Despite the slowdown, the average UK home still costs £271,079, a figure that remains out of reach for many first-time buyers. Nationwide’s Chief Economist, Robert Gardner, noted that house prices are still high relative to household incomes, making deposits difficult to raise—especially amid ongoing cost-of-living pressures.
The data arrives as speculation grows around potential property tax reforms in the upcoming Autumn Budget. Reports suggest the government is considering:
- A National Insurance levy for landlords
- Scrapping stamp duty
- Replacing council tax with a national property tax
- Removing capital gains tax relief on high-value home sales
Gardner said the UK needs a tax system that “allows people to move more effectively,” adding that reforming property taxes could help unlock mobility in the housing market.
However, experts are divided. While some argue that abolishing stamp duty could stimulate transactions, others warn it could result in billions in lost revenue. Mortgage costs remain a key barrier, with average rates for two- and five-year fixed deals hovering around 5%, according to Moneyfacts.
Still, there are glimmers of hope. Further interest rate cuts by the Bank of England could ease mortgage pressures, and incomes are expected to outpace house prices, potentially improving affordability.
For housebuilders, estate agents, and developers, the coming months will be critical. Policy decisions in the Autumn Budget could reshape the landscape—either unlocking new opportunities or adding fresh complexity to an already challenging market.
UK Government Borrowing Costs Hit 27-Year High – What It Means for Housing
The UK’s long-term borrowing costs have surged to their highest level since 1998, with the 30-year gilt yield—a key measure of government debt interest—rising to 5.72%. This development adds pressure on Chancellor Rachel Reeves ahead of the Autumn Budget, as she faces growing scrutiny over fiscal credibility and economic strategy.
While some analysts interpret the spike as a warning sign of market unease, others see it as part of a pan-European trend, driven by structural changes in pension markets and global uncertainty. Yields on long-term bonds in Germany, France, and the Netherlands have also hit multi-year highs.
For the housing sector, the implications are significant:
- Higher borrowing costs could limit the government’s ability to invest in housing infrastructure and support schemes.
- Tax rises are increasingly expected, with speculation around reforms to stamp duty, capital gains tax, and even a national property tax.
- The freeze on income tax thresholds may be extended, dragging more households into higher tax bands, a move often dubbed a “stealth tax”.
Despite the rise in long-term yields, shorter-term borrowing costs have remained relatively stable. The 10-year gilt, which more directly influences mortgage rates, saw strong demand this week, with £141bn in bids for £14bn of debt.
Still, the broader economic picture remains fragile. The pound fell more than 1% against the dollar, and Reeves is reportedly under pressure to raise between £18bn and £28bn to meet her fiscal rules, which include reducing debt as a share of national income by 2029-30.
For housebuilders, estate agents, and developers, this is a moment to watch closely. The Autumn Budget could bring major shifts in property taxation, and the rising cost of government borrowing may shape everything from housing policy to infrastructure investment.
