What does Labour’s focus on housing mean for the built environment sector? Five key learnings from this year’s party conference

Written by Senior Account Director, Harry Gilham.

“This feels like a housing conference with a bit of politics added on” were the words of one developer who spoke at a YIMBY rally at Labour Party conference, and it was hard to disagree with that sentiment. This year’s conference had a plethora of fringe events on the subject of housing and getting Britain building again.  This was hardly surprising though given how much emphasis Labour have dedicated to the issue of planning reform and building more housing over the last couple of years. Since entering Government in July, this policy area has featured prominently in Labour’s plan for Government. So, what can businesses in the built environment sector takeaway from Labour Conference 2024? This article looks at what was discussed in the fringe events on the built environment and the general feel from members and backbench MPs and councillors rather than speeches from the main stage.

1- Interest in housing is high, but with a greater focus on social housing , so private developers need to do more to be heard 

The enthusiasm on the fringe agenda for housing was matched by the interest from delegates; most housing events I attended were full. One housing fringe event even had a queue of people some 100metres long that snaked through one of the main thoroughfares of conference. This was something I have not seen before for a fringe event. Other housing events had standing room only space and even people sat on the floor. It will be extremely important for housebuilders and developers to have in place a coherent engagement strategy with the Labour Party, given the level of interest in the housing crisis is much higher than under the last Conservative Government. 

Most members were keen to see new housing built, many proudly wearing the Labour YIMBY  (yes in my back yard) badge. This interest in housing is not new for the Labour Party – councillors and party members are often on the frontline of the housing crisis. They represent and more regularly meet people impacted by poor quality rental accommodation, the lack of social housing and young people frustrated with not being able to get onto the property ladder, more so than Conservative or Liberal Democrat party members. From speaking to members at conference they do appear to be more concerned regarding these matters than conversations I have had previously at Conservative Party conference. 

2- Housing Associations need to prove their relevance 

 The feeling in the room from several fringe events was that the membership and MPs might prefer to see councils look after social housing directly again rather than housing associations. To give an example of the strength of feeling on this, it was suggested at a fringe event for housing association stock to be nationalised. Whilst this is not official Labour Party policy, it should give housing associations pause for thought. Housing associations performance in recent years was also strongly criticised. The case of of two-year old Awaab Ishak who died because of mould in a housing association flat was highlighted. The MP said that housing associations need to look after tenants better and that performance in recent years “had not been acceptable”. Various MPs emphasised the need for housing associations not just to build more housing but look after their current tenants better.

There are a few implications for the housing association sector. From much greater scrutiny to potentially less market share if councils step in to manage their own housing stock. Instinctif have worked in this sector consistently over the past few years and will be well placed to advise on an engagement strategy. 

Many MPs, Council Leaders and Regional Mayors focussed on the need to build more social housing given housing waiting lists were so long. The leader of one London council highlighted how the borough is 300% over their temporary accommodation budget as they were housing so many families due to a lack of available affordable homes. He also quoted the figure that 1 in 10 children are living in temporary accommodation in London. Therefore, building more social housing was described both as a social imperative and an economic one. Economically it was highlighted building more social housing would cut down expenditure on housing allowance and temporary accommodation. 

3- The Labour Party and its membership will lose patience with private developers that shy away from providing affordable housing. 

But what of the private sector? The private sector was acknowledged, and the party recognises the role the private sector will play in hitting the new target of 370,000 homes. However, it was clear this was not where the focus was given the lack of discussion about the private sector. Private developers need to realise that the next five years will see an even greater demand on them from the Labour Government to build more affordable homes. The partnerships model is one that is likely to see great growth over the next five years. 

Many new Labour MPs have real life experience of living in poor quality rental housing or know many friends that do. One MP said it was his generation that had really been impacted by the housing crisis. Of potential relevance to the built environment space is that there is a large new intake of young Labour MPs that are keen to build more housing. However, private developers should not assume there will be a free licence to build anything and everything in the next five years. Labour wants to build more genuinely affordable homes, reduce the housing waiting lists and provide better life chances and quality of housing for all.

4- Go beyond traditional forms of public consultation to find positive voices 

There was also much discussion on public consultation. Many Labour stakeholders to recognise that the demographic that most often responds to and objects to planning applications is not reflective of the population at large.. They emphasised the need to go beyond traditional public consultation and find those that are supportive, bringing the public consultation to different demographics, including young people, who are often more supportive of development in their area and asking people on the housing waiting lists if they were supportive of new housing. It was noted nearly all would all say yes and write in support. Developers were urged to spend more time on finding supporters for projects, as they do exist. 

For developers engaging with Labour local authorities and councillors, messaging should focus on how any new development can help deliver genuinely affordable housing and reduce housing waiting lists. Developers should also ensure they build to high quality standards and reiterate this to local authorities. Labour is also keen to see the next generation of homes be environmentally sustainable, so wherever possible developers should incorporate solar panels, heat pumps, electric walls and other environmental initiatives in their housing projects.

5- What does this all mean for businesses across the built environment sector? 

 The operating environment is certainly better than what it was 12 months ago. There is a real desire amongst the Labour Party to build more homes and hit the new target of 370,000 homes per year. Labour are keen to work with the sector to deliver the homes the country needs. 

Labour have owned the issue of housing, mainly because their voters from the ages of 18 to 45, are the ones most impacted by the housing crisis. 

However, conference 2024 reiterated how for Labour it is the provision of greater social housing, reducing housing waiting lists and providing good quality human habitation that drives the party. 

At Instinctif we have extensive expertise in the housing sector and knowledge of the Labour Party. We have been advising housebuilders and developers on engagement from Town Hall to Whitehall for many years. Given delivering 370,000 new homes per year is one of the Government’s main priorities, there will be considerable opportunity for the sector over the next 5 years. However, whilst there are opportunities to the sector there are also risks, so engagement with the Government will be crucial. Do get in touch with our property experts if you would like to know more.