A year has passed since Labour took office with a mandate to fix the UK’s chronic housing crisis. Promising to deliver 300,000 new homes a year and to champion a ‘decade of renewal’, the government’s rhetoric was bold and, many hoped, deliverable. Yet twelve months on, the numbers speak for themselves: housing delivery is barely scratching 5% of the annual target and signs for the year ahead suggest an even grimmer outlook.

The pace of development is not where it needs to be, with layers of complexity embedded into the delivery pipeline, threatening to stall not just this government’s housing goals, but the future of large-scale development in the UK.

The well-meaning but poorly resourced Gateway system, an outcome of post-Grenfell safety reforms, has brought much of the housing pipeline to a halt. This is particularly evident in the Build to Rent sector, where current timelines can deter institutional investment. Criticisms levelled against the Building Safety Regulator (BSR) include its failure to engage in constructive pre-application discussions with applicants and its refusal to advise applicants on how to comply with Building Regulations.

Just this week the Government has made some progress by finally setting out its plan to improve the BSR, separating it from the Health and Safety Executive (HSE) and taking steps to create a single construction regulator. A new Fast Track Process to accelerate the processing of existing newbuild cases and remediation decisions alongside plans to recruit 100 members of staff by the end of the year are certainly welcome, but is this enough given the scale of the Government’s ambitions?

It is Gateway Two (pre-construction) where most of the system is clogged. Despite a 12 week target, it often takes a year and any changes can send developers back to the drawing board. According to figures provided through a Freedom of Information request from Cast, just 20 applications out of 187 submitted were given approval – meaning the percentage getting the green light is 10.7%. Gateway Three (post-practical completion), also targeted at 12 weeks, must take place before residents can move in, leaving developers, investors and councils in limbo. In the meantime, costs aggregate and uncertainty rises around who carries the risk.

Large housebuilders with deep pockets might be able to absorb delays. But for SMEs, it’s a non-starter given the risk - the waiting time is too long and the uncertainty too high. Many schemes are being redesigned to come in under 18 metres to avoid the Gateway process altogether. But this solution comes at along-term cost of fewer homes and lower density.

This is all unfolding against a backdrop of inflationary pressure, escalating construction costs and significant labour shortages. A recent BBC report underscored how construction workers aren’t available in the numbers required, with 160,000 extra workers needed to meet Labour's targets. Post-Brexit workforce losses, ageing skilled workers and limited training courses are also contributing to this problem.

Investors are wary of tying up capital in projects where planning takes years, construction is delayed by regulation and exit timelines are riddled with risk. This is on top of interest rates, yield expansion and the looming Renters Rights Bill. To unlock the billions of pounds in pension funds and sovereign capital sitting on the side lines, the government must present a clearer path to delivery and de-risk the process.

There may be some simple solutions to unlocking Gateway 2. Moving the approval process to the ‘golden brick’ stage, would allow sites to get started quickly and for some of the expanding timeframes to be absorbed within the construction programme. A more phased process has also been suggested or looking to the Scottish system to review its approach.

A further opportunity amongst such challenges is modular housing. Given the pressures on labour and construction costs, modular should be seen not as a niche alternative but rather offering speed, quality and sustainability. Yet it lacks market confidence and the government has not yet put real weight behind supporting its delivery at scale.

The House of Lords Industry and Regulators Committee has launched a short inquiry into the Building Safety Regulator (BSR). The inquiry is calling for evidence Call for Evidence - Committees - UK Parliament by 31 August 2025 and the Building Safety Sounding Board (run by the British Property Federation) is also working to put together evidence responses and is calling for engagement.

Labour’s first year in office was always going to be about laying foundations. But without quick progress on the Gateway system under the BSR’s new Chief Executive, as well as meaningful investment in planning capacity and a clear message to institutional capital that housing is a safe bet again, the government’s second year in office could look even worse.

This government understands the scale of the challenge but must now move beyond diagnosing the problems to implementing solutions. The potential is still there, as well as the capital, but without serious reform, Labour’s promise will remain just that.

‍