Four priorities for Burnham’s government if it is to succeed where others have failed on housing delivery – Helmore

His first speech as Prime Minister reinforced that approach, with a commitment to devolve power from Whitehall, reindustrialise parts of the country and build more homes.

His Cabinet appointments seem to underpin that commitment, with Angela Rayner back as Secretary of State for Housing, Communities and Local Government and Matthew Pennycook retained as housing minister, which offers continuity for a sector used to rapid changes in ministerial leadership. John Healy, the new Chancellor, has previously held the roles of Minister of State for Housing and Planning and Shadow Secretary of State for Housing.

On the face of it, this sounds encouraging for the housing market. But what does Burnham’s record tell us about how he’ll operate as Prime Minister, and what could it mean for the developers, lenders and brokers who help bring new homes forward?

Building on Burnham’s reputation as mayor

Under Burnham’s mayoralty, housing and place-making were treated as tools for economic growth, with Greater Manchester now one of the UK’s strongest performing city regions for housing delivery and regeneration. It has attracted billions of pounds of investment over the past decade, delivered large-scale regeneration schemes across Manchester, Salford and Trafford, and become one of the fastest growing urban economies outside London.

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Elsewhere, his support for devolution has been welcomed by many. Developers often argue that local leaders are better placed than Whitehall to understand housing needs, infrastructure constraints and regeneration opportunities, and Burnham has spent years making precisely that case.

The challenge now is whether he will be able to translate that regional model on a national scale. As mayor, Burnham could focus on one housing market with a relatively coherent economic geography. As Prime Minister, he will have to address vastly different regions ranging from the home counties to coastal towns, rural communities and former industrial areas.

Housebuilders need more than political promises

All that being said, the development sector is more interested in delivery than rhetoric. Housebuilders have heard lofty housing promises before, only to see them broken by successive governments, which is why the early decisions of this new government will matter.

At Paragon Development Finance, we propose four focus areas that could boost housebuilding momentum.

The first is fixing the tax burden on housing delivery. Research from the Home Builders Federation (HBF) and Paragon found that 45% of local authorities are charging council tax on new homes before they are occupied or sold, and often even connected to utilities such as water, with no occupants utilising public services.

As a result, 88% of SME developers say these charges are affecting cash flow and development viability, with growing use of Empty Homes Premiums and Second Homes Premiums on unsold new-build properties adding to the pressure.

For brokers arranging development finance, these costs are increasingly becoming part of conversations around scheme viability and cash flow. Reducing these burdens would not only help developers bring forward projects but could also improve confidence among lenders looking to support housing delivery – tackling this would be low-hanging fruit and provide a quick win.

A clear national framework on when council tax becomes payable, alongside exemptions from Empty Homes and Second Homes Premiums for newly completed homes, would also be a quick win.

Support for the homeownership pipeline

The second is support for first-time buyers. Whilst planning has dominated housing policy reform in recent years, housebuilding is only sustainable when demand remains healthy.

Since the withdrawal of Help to Buy, developers have seen affordability pressures slow sales rates and constrain investment. Industry research by the HBF earlier this year found that 84% of SME developers view the lack of dedicated support for first-time buyers as a barrier to growth, while many believe effective demand-side support could unlock additional housing delivery.

Burnham has frequently spoken about expanding opportunity and tackling inequality. A modern first-time buyer support package, alongside a review of stamp duty, could help stimulate demand across the market, supporting developers’ sales rates and creating opportunities for mortgage brokers helping aspiring homeowners navigate affordability challenges.

Thirdly, we know that affordable housing is a key priority for Burnham and there are suggestions that the government will look to create a state-owned housebuilder. SME housebuilders already have the local expertise and supply chains to increase delivery, so rather than taking on the cost and complexity of creating a national housebuilder from scratch, the government could help SME developers achieve faster results by providing grants to unlock unviable land and by acquiring completed stock – reducing exit risk, encouraging further lending into the sector and helping create a healthier pipeline of development and residential finance opportunities across the market.

Finally, Burnham’s government must professionalise planning decision-making. The lack of consistency across local authorities has created a postcode lottery, but for housing to be delivered at pace, developers and their lenders need certainty. Giving greater power to local planning officers operating within agreed national policy frameworks and local plans could help remove some of the uncertainty the planning system currently struggles with. Greater certainty in the planning process benefits everyone involved in housing delivery – developers gain confidence to invest, lenders can deploy capital more effectively and brokers have greater certainty when helping clients secure funding for new schemes.

If he truly wants to unlock housing delivery, support lending and improve access to homeownership, there’s a clear formula. The challenge now is turning the lessons of Greater Manchester into a national housing strategy that delivers for developers, lenders, brokers and, ultimately, homebuyers.