One year into Labour’s term, the development industry finds itself in a period of cautious optimism. The government’s commitment to delivering 1.5 million homes, reforming planning, and unlocking land has firmly re-established growth and regeneration as national priorities.

Yet while the policy signals are clear, the delivery system remains under strain. We’ve reflected on what’s changed – and what still needs to – if Labour’s ambitions are to be realised.

The right direction – but stalled at delivery

Labour’s repositioning of development at the heart of national economic strategy has been widely welcomed.

“It’s positive that the government recognises development as integral to inclusive, economic growth and has made this the core of its economic strategy UK-wide.”

Mark Byles

Yet policy intent hasn’t always translated into practical change. Proposals to penalise developers for not building out schemes or ramp up local authority CPO powers raise questions about feasibility and fairness.

“Most councils don’t have the resources for that. It risks making the planning and CPO process even more adversarial. There’s still a real knowledge gap between achieving planning consent and actually delivering a scheme .”

Mark Byles

Alastair Crowdy agrees the tone has shifted, but sees persistent obstacles to unlocking sites:

“The signal that greenfield development may increase is welcome. But while the policy is pro-development, it doesn’t solve what’s already stuck. Brownfield remains a problem. There’s a danger of raising optimism, then failing to follow through.”

Green Belt vs Grey Reality

Perhaps the boldest shift so far has been Labour’s stance on the Green Belt. For the first time in decades, parts of it – especially around London – are being seriously reconsidered for development.

“If we want to get anywhere near the housing targets, Green Belt reviews are essential. The London Green Belt has never been formally reviewed – and this is a critical moment.”

Jess Wilson

The political stakes are high, and success will depend on how the debate is framed.

“We need a wholesale public education effort. Otherwise, this could become a political disaster for Labour.”

Resourcing, viability & market reality

The delivery gap isn’t just political – it’s structural. Resourcing issues, viability constraints and build cost inflation continue to stall progress.

“Reducing statutory timeframes won’t help unless resourcing is sorted. You can’t speed things up if there’s no one there to do the work.”

Jess Wilson

“The Building Safety Regulator is clearly a major problem for London. Now reform has been announced, we’ll have to see what a ‘fast track’ scheme looks like.’

Mark Byles

“The fundamentals haven’t changed – build costs and viability are the blockers. And there’s been no serious demand-side intervention to stimulate the market.”

Simon Martin

Making better use of what we’ve got

While land supply dominates headlines, the team sees untapped potential in urban centres – particularly above retail and transport hubs.

“We’re still not making full use of our town centres – especially above retail. The infrastructure is already there. We should be delivering homes where the structure exists.”

Hugo Fogden

But confidence to act is low in many councils.

“Many councils feel increasingly vulnerable. That’s making them more cautious, not less – which has a knock-on effect on development delivery.”

Mark Battersby

Targets, Grey Belt, and political risk

Robust housing targets still matter – both to create clarity and drive momentum.

“Targets push people to deliver more and create a clear framework. We need to double down on grey belt land – and frankly, government needs to better educate itself on the real economics of development.”Jonny Stevenson

Political volatility is also emerging as a new barrier.

“The rise in Reform support is a challenge Labour can’t ignore. Reform has no real planning policy, but they represent uncertainty – and uncertainty slows development.”

Jess Wilson

Final Thoughts: From vision to execution

“It’s been slow going translating the ambition of 1.5 million homes into practical delivery frameworks. The pipeline remains unclear.”

David Conboy

The direction of travel is right: Labour has set a more ambitious, pro-growth agenda than we’ve seen in years. But rhetoric alone won’t build homes. The system still lacks the delivery platform – in resourcing, governance and viability – to get schemes moving.

The message from the team is clear: the ambition is there. Now it needs the tools to match.

Get in touch to discuss how Newsteer can help you navigate this evolving landscape.