Welcome to This Week in Property, your essential update on the latest UK construction and property news. From government pressure to accelerate housing delivery to shifting rental yields and major commercial projects, the property sector is navigating a week of significant change. Here’s a round-up of the latest developments shaping housing, investment, and regulation.

The new Labour government is making its housing agenda clear, with Housing Secretary Reed urging developers to “get Britain building faster”. This comes as investment in new housing has slumped to its lowest annual rate in 12 years, according to recent data.

Several major housing developments are moving forward, including Barratt Redrow’s plans to build out Bicester fields and Liverpool’s Festival Gardens scheme, which will deliver 440 homes in its first phase. In another significant development, Homes England and Vistry Group have signed a £150 million joint venture to boost housing delivery.

The Home Builders Federation has issued a warning about London housing facing collapse, urging immediate government action to prevent a crisis in the capital’s housing market.

Property market trends: challenges and opportunities

The property market is showing mixed signals, with asking prices rising despite concerns about potential property tax changes. Rightmove’s latest House Price Index has generated significant industry discussion about market direction.

Regional variations continue, with the southern property market reportedly struggling, while Glasgow has been ranked as the most profitable city for buy-to-let investments. Despite challenges, buy-to-let rental yields have hit a 10-year high, offering some positive news for investors.

In the rental sector, inflation has outstripped rental growth this year, indicating a potential rebalancing of supply and demand. However, Knight Frank predicts steeper rental growth due to government policy, suggesting continued challenges for renters.

Commercial property: new developments and leasing activity

The commercial property sector is seeing active development and leasing. Caddick has started work at a Durham business park, while Willmott Dixon is on board for the Gravesend Leisure Centre project. McAlpine has been handed the lead role for a Manchester health spa, expanding the variety of commercial developments underway.

In leasing news, Skechers has signed a deal to triple its space at Oryx’s Centrium Business Park, while the Waterside Innovation Campus is now fully let with the addition of ChemPoint. Rula has secured consent for a 775,000 sq ft industrial and logistics scheme in Stockton-on-Tees, reflecting continued demand for logistics space.

Innovation and sustainability in construction

Sustainable construction practices continue to advance, with Bullivant trialing a battery-powered piling rig on a Morgan Sindall site, highlighting the industry’s shift toward greener equipment. Nationwide Platforms is ramping up anti-crush technology to improve safety standards.

Progress is also being made with RAAC (Reinforced Autoclaved Aerated Concrete) removal, addressing a significant safety issue in older buildings across the UK.

Policy and regulatory changes

On the policy front, Business rates are being examined by Chancellor Reeves, who is targeting ‘cliff-edges’ but ruling out more frequent revaluations. The government has rejected the Lords’ proposal for reclaiming student homes, maintaining the current regulatory approach to student housing.

Industry stakeholders are urging the government to avoid new layers of legislation in the Decent Homes Standard, highlighting concerns about regulatory burden. Meanwhile, property leaders are backing an ambitious charter to fast-track home sales to 28 days, which could transform the transaction process if implemented.

For investors in Houses in Multiple Occupation (HMOs), new planning requirements could be on the horizon as Sefton Council proposes a borough-wide Article 4 direction, potentially creating additional hurdles for this investment strategy.

This week highlights both challenges and opportunities across the property landscape. With the government driving faster housing growth, investors watching rental trends, and new policies on the horizon, the sector faces a dynamic period ahead. Staying informed and adaptable will be key for developers, landlords, and investors alike.

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