Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Burnham Government Faces Four Key Housing Delivery Challenges

Andy Burnham has become Prime Minister after a decade as Mayor of Greater Manchester, where he focused on regeneration, housing, and economic development. His first speech as Prime Minister included commitments to devolve power from Whitehall, reindustrialise parts of the country, and build more homes.

Burnham’s Cabinet appointments reflect this focus, with Angela Rayner as Secretary of State for Housing, Communities and Local Government, and Matthew Pennycook retained as housing minister. John Healy, the new Chancellor, has previously held senior housing roles. This continuity is notable for a sector accustomed to frequent changes in leadership.

During Burnham’s time as mayor, Greater Manchester became one of the UK’s strongest performing city regions for housing delivery and regeneration, attracting significant investment and delivering large-scale schemes. His support for devolution has been welcomed by developers, who argue that local leaders are better placed to understand housing needs and regeneration opportunities.

However, the challenge for Burnham as Prime Minister will be to apply this regional approach on a national scale, addressing the diverse needs of areas ranging from the home counties to coastal towns and rural communities.

According to Paragon Development Finance, there are four focus areas that could help boost housebuilding momentum. The first is addressing the tax burden on housing delivery. Research from the Home Builders Federation (HBF) and Paragon found that 45% of local authorities are charging council tax on new homes before they are occupied or sold, and sometimes even before they are connected to utilities. This practice is reported to affect cash flow and development viability for 88% of SME developers, with additional pressures from Empty Homes Premiums and Second Homes Premiums on unsold new-build properties.

For brokers arranging development finance, these costs are increasingly relevant to scheme viability and cash flow discussions. Reducing these burdens could help developers bring forward projects and improve confidence among lenders supporting housing delivery.