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The Markets
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Real Estate

UK builders: Gove plan will have minimal impact

US investment bank Citi has expressed scepticism about the recent proposals announced by UK Housing Secretary Michael Gove to address delays in housing developments.

The bank believes these measures will have minimal impact on the current planning system stalemate, foreseeing continued entanglement in the appeals process.

Citi anticipates a significant improvement in the planning bottleneck after next year's General Election, expecting more realistic policy actions to address these issues.

Gove's plan includes naming and shaming councils that unjustifiably block housing projects, with potential loss of planning powers.

Despite these efforts, the National Housing Federation has warned of a possible reduction in homes built, especially in greenbelt areas.

Gove has also reassured that green belts won't need redrawing to meet housing targets, amidst criticisms from Labour and concerns from London Mayor Sadiq Khan's office.

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