The property sector needs support and clarity from the government to ensure development does not stall during the UK’s negotiations to leave the European Union.
Property-related policy has been on hold since the referendum and with Brexit and the economy taking centre stage, the sector is at risk of being sidelined, say industry experts.
John Stewart, director of economic affairs at the Home Builders Federation, said: “Recent months have seen unprecedented political turmoil.
“We need to see continued commitment from government that housing remains a top priority, which will allow the industry to deliver the social and economic benefits increased supply provides.”
MPs return from their summer recess on Monday. Decisions ranging from planning and infrastructure to starter homes and direct commissioning will give an indication of where the property sector, and specifically housing, is on the government’s list of priorities
According to Bill Hughes, head of real assets at Legal & General Investment Management, the sector is at a “crucial juncture” and is at risk of being marginalised.
“The sector, along with infrastructure, massively enhances the productivity of the UK economy. Theresa May and her new government need to continue seeing us as a force for good,” he said.
Decisions central to issues of starter homes, the community infrastructure levy and public sector property disposals were delayed in the run-up to the EU referendum.
Central to these was the Neighbourhood Planning and Infrastructure Bill, scheduled for release in July before being delayed by the new PM’s Cabinet shake-up. The bill is expected to include measures to speed up planning and housebuilding.
Melanie Leech, chief executive of the British Property Federation, said: “Now is a critical time for the government to ensure that it provides a policy framework that supports the real estate industry.
“Policy issues that we have been working on for a long time… have taken on a new significance in the light of significant political and economic upheaval.”
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Housing should remain a focus due to its economic impact, said Mark Prisk, MP for Hertford and Stortford and former housing minister.
He said: “What ministers will be anxious about is that the economy might start to drift. So they will want robust packages in place to help encourage the economy and a key part of that will be housing.”
The Autumn Statement is likely to be crunch time for the sector, bringing clarity around the wider economic situation and stimulus measures that will affect housing.
Jeremy Blackburn, head of policy at the RICS, said the packages involved will determine the performance of the wider economy, and suggested May and chancellor Philip Hammond will not continue with George Osborne’s austerity agenda.
He said: “The one that will definitely happen, and will probably be the most important for the property sector, will be the Autumn Statement.”
However, an earlier bellwether will be the party conference season, which Blackburn said would be “all important for mood music around Brexit, and any big policy changes”.
The Labour Party conference will start on 25 September, with the Conservative Party conference following on 2 October.
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