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Action needed to make most of yet another ‘fresh start’ for housebuilding – Leitch

Action needed to make most of yet another ‘fresh start’ for housebuilding – Leitch

Neil Leitch, managing director of development finance at Hampshire Trust Bank (HTB)
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Posted:
November 6, 2025
Updated:
November 6, 2025

With a new Housing Secretary taking office, there is once again talk of a 'fresh start' for the housing sector.

For those of us who have been in the industry for any length of time, that phrase has become all too familiar.

Steve Reed is the 12th Housing Secretary since 2010, a reminder of how unstable housing policy has been over the past decade and a half. Each new appointment brings renewed ambition, new targets and another set of promises to fix a system that has been under strain for decades. The sentiment is right, but this time we need to see genuine progress.

 

Big targets, limited delivery

The latest government has spoken with conviction about its housebuilding ambitions, but delivery continues to fall short. Housebuilding is now at its lowest level in a decade, and planning approvals have dropped, particularly for smaller sites that could be brought forward quickly by regional and independent developers. These are the very schemes that could make the biggest difference to local supply, yet they remain trapped in a slow and inconsistent planning system.

Even when approval is granted, delivery is far from certain. Rising costs, skills shortages and unpredictable project timelines mean that too many approved schemes never progress beyond paper.

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Reed has said many of the right things about unlocking supply and speeding up delivery, including proposed changes to the Planning and Infrastructure Bill that would allow ministers to overrule councils blocking applications. But what the sector needs now is not more policy headlines; it is consistency, commitment and a willingness to tackle the structural issues holding development back.

 

The planning problem

Planning remains the single biggest barrier to progress. Local authorities are under-resourced and overstretched, resulting in a process that is slow, fragmented and unpredictable.

For SME developers, that uncertainty can be fatal. Smaller firms do not have the balance sheet to sit on sites for years waiting for approval, nor can they absorb sudden changes in policy or interpretation. Every month lost to planning delays adds cost. Labour, materials and finance all rise, and developers lose the ability to phase projects efficiently. For SMEs operating on tighter margins, that difference can decide whether a scheme proceeds at all.

If we want to build more homes, we have to fix the system that decides whether those homes can exist. That means better resourcing for local planning departments, clearer national guidance, and accountability in decision-making. Applications need to be determined within the timescales set by the central government, and the discharge of planning conditions should be handled promptly so approved developments can move forward.

Recent experience with the Building Safety Act has shown how well-intentioned regulation can delay delivery when the resources to administer it are not in place. Reform must go hand in hand with capacity if it is to work in practice.

Brownfield regeneration also needs to be central to planning reform. Many of these sites sit in regional towns and cities where SME developers are most active, and where housing need is often highest. Unlocking them would provide quick, sustainable wins for both local economies and national supply.

 

Skills and costs

The sector also faces a growing skills challenge. Many experienced tradespeople left the industry during the last downturn and have not returned. At the same time, too few new entrants are joining, leaving a shrinking pipeline of talent just as demand for construction grows.

That lack of skilled labour drives up costs and slows delivery. Developers can only move as quickly as their supply chain allows, and right now that chain is under significant strain.

Addressing this will take time. It requires investment in apprenticeships, training and local employment initiatives that make construction a viable, attractive career for the next generation. Without this, no amount of planning reform will translate into completed homes.

Housing delivery also depends on joined-up policy across departments. Energy, transport and environmental frameworks all influence how and where we can build. A coherent approach across government is just as important as the number of planners or builders on the ground.

 

Finance that enables, not obstructs

Funding is another critical part of the equation. For SME developers, access to the right finance can determine whether a scheme proceeds or stalls.

Mainstream lenders have become more cautious, with tighter criteria and an increasingly narrow view of risk. That has left many smaller developers searching for funders who understand how they operate and who can structure facilities that work in practice, not just on paper.

Specialist lenders play an important role here. Funding needs to enable progress, not obstruct it, providing the certainty and flexibility that keep projects moving. Certainty of funding is what keeps construction sites active through market cycles. When developers and funders have mutual confidence, delivery becomes more predictable and sustainable.

Innovative structures, such as revolving credit facilities, can also help experienced developers manage multiple projects efficiently and keep capital working across sites. Finance should adapt to project realities, not the other way around.

 

Consistency matters

The revolving door of housing ministers has done the sector few favours. Each new appointment brings a new plan, but before any real progress can be made, the brief changes hands again.

Housing delivery requires long-term thinking and continuity, both of which have been in short supply. Developers and funders alike need stability in policy to plan ahead with confidence. Constant change undermines that confidence and slows both investment and delivery.

If this latest appointment is to mean anything, it must come with stability. The industry does not need another round of consultations or rebranded initiatives. It needs clear, consistent policy that lasts long enough to make a difference.

We have the experience, the talent and the appetite to deliver more homes. What the sector needs now is the consistency and policy discipline to turn potential into progress.

A fresh start can only deliver if it leads to fresh results.