Planning remains ‘major barrier’ to new development says RICS
Latest RICS survey highlights urgent need for Labour to streamline planning system as Angela Rayner has promised to do.
Planning policy is a major barrier to housebuilding according to RICS but it is expecting a significant uplift in activity as a result of Angela Rayner’s proposal to build 370,000 new homes a year.
The latest RICS Construction Monitor survey shows however the scale of the problem facing Rayner and the new Labour government in their attempts to overhaul the planning process.
Activity in the construction sector is pretty flat at the moment and has been for some time. RICS’ surveyors say planning and regulation are some of the biggest impediments to growth, with 58% of respondents singling it out as a key issue.

Before Angela Rayner’s recent speech, RICS Chief Economist, Simon Rubinsohn, commented: “There are some major challenges identified by respondents that need addressing to secure the more meaningful uplift in both housing and infrastructure that appears to now be the focus of policy.
Impediments
“In particular, planning reform was front and centre in many of the remarks from a large number of contributors, and it will be interesting to see the impact in our figures of this week’s planning and housing announcements.”
It is not just planning that is an issue though, surveyors also highlight ongoing labour shortages in the sector. They are not quite as severe as in previous quarters but they remain a significant concern for a large number of respondents (47%) and will only get worse as activity picks up.
Addressing critical skills shortage is imperative for meeting the housing and infrastructure targets.”
RICS Chief Executive Officer, Justin Young, said that addressing the critical skills shortages in the construction sector: “Is imperative for meeting the housing and infrastructure targets announced this week.”
Finance was an even bigger barrier to growth although it is expected to ease as the base rate falls.
RICS’ quarterly construction monitor surveys professionals from across the country to gain insight into the state of the construction sector, including current and predicted future conditions.