Support, Not Penalties”: Concerns Mount Over Labour’s New Housing Delivery Rules

As part of the UK Government’s push to “get Britain building again”, Housing Secretary Angela Rayner has unveiled radical new reforms targeting private developers. However, Propertymark is warning these measures could backfire.

What’s Changing?

Developers will now be required to:

• Commit to build-out timeframes as a condition of planning permission.

• Report progress annually to local authorities.

• Face financial penalties or potential site seizure if targets aren’t met.

In addition, large housing sites (2,000+ homes) must now default to mixed-tenure, aiming to speed up construction by including more affordable homes.

What Propertymark Says:

Propertymark is urging caution, warning the policy could deter developers from committing to larger or more complex schemes:

“We may see house builders deploy a much more reserved approach and commit only to projects they can make reality without encountering any danger of commercial penalties.”

It also calls for:

• Better skills planning and supply chain support, to enable build-out at scale.

• Sector-wide collaboration, to ensure homes are delivered in the right areas at the right time.

• Realistic implementation of the Planning and Infrastructure Bill.

Chief Executive Nathan Emerson added:

“The current housing challenge is not just about new homes per month, but upgrading the entire homebuilding process from start to finish.”

What It Means for You:

While the aim is to fix housing shortages, there is concern that over-regulation and punitive conditions may slow delivery instead of accelerating it — especially where developers already face viability pressures.

We’ll be watching closely as this develops, and we’ll keep you updated on how this might impact:

• Local housing supply

• Lettings market activity

• New development timelines

 For now, expect increased scrutiny on land usage, affordable housing ratios, and project feasibility at every stage of the planning process.