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.

Housing Secretary Considers State-Owned Housing Developer Scheme

Steve Reed, the Housing Secretary, is examining proposals for a state-owned housing developer, according to a Guardian exclusive reported by Mortgage Solutions. The scheme would reportedly allow the government to borrow at lower rates than private developers, with the aim of building both commercial properties and affordable homes.

The report states that the initiative is being considered as housebuilding rates fall short of the government’s target of one-and-a-half million new homes by 2029. The Guardian also indicated that the plan could be piloted in a small area, and that funds allocated to Homes England may be used to establish an independent body to oversee the housebuilding process.

Neil Leitch, managing director at Hampshire Trust Bank, commented that creating a state-owned developer does not address what he sees as the main constraints on housing delivery. He pointed to planning uncertainty, inconsistent decision-making, and increasing complexity in the planning process as significant barriers for developers.

The article also highlights other challenges facing the sector, including new tariffs on steel set to take effect from 1 July 2026. The Construction Leadership Council noted that these measures have already increased costs on live projects by 14-18%, with quota volumes to be reduced by 51% and a 50% tariff on imported steel exceeding the quota.

In response to delays in housebuilding, the government announced a £100 million investment in March to speed up planning decisions. Additionally, two new artificial intelligence tools are being tested to halve decision times for planning applications.

Jewson’s ‘Let’s Get Britain Building NOW’ campaign is cited as stating that Britain is short of six-and-a-half million homes in total.

For letting agents and inventory clerks, these developments could signal changes in the volume and type of new housing stock entering the market, as well as potential shifts in the planning and development landscape.