How could the housing paper's recommendations affect the Secretary of State for Business and Trade?
Regulatory burdens identified in housing paper threaten construction sector viability The housing paper, developed by Gavin Barwell and Sajid Javid, identifies that many housing schemes with planning permission are unviable due to rising costs. The report states that building an average new home is £76,000 more expensive than it was five years ago, with half of that increase attributed to regulation, policy, and tax. This erosion of developer margins, exemplified by a 300-home Build to Rent scheme losing £6m instead of making £8m, directly impacts the operational viability of the construction sector, which falls under the purview of the Secretary of State for Business and Trade.
- Effect
- Strong negative
- How direct
- Brind's reasoning
- When
- Within weeks
- The story
- Gone quiet
How it reaches Secretary of State for Business and Trade
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Sajid Javid and Gavin Barwell collaborated on a housing paper on October 14, 2026. The paper states that falling consumer confidence and severe development unviability are hindering housebuilding. It proposes a comprehensive strategy that includes regulatory freezes, a shared equity scheme, and planning reforms to address the housing crisis.
The full event1independent outlet -
This financial pressure, which turns a 300-home Build to Rent scheme from an £8m profit in 2020 to a £6m loss now, directly affects the operational margins and viability of the construction industry, a key component of the business sector overseen by the Secretary of State for Business and Trade.
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The facts so far
As reported. Each one links to where it comes from.
- Building an average new home is £76,000 more expensive than it was five years agocityam.com
- Half of the increased cost is due to regulation, policy and tax such as the Future Homes Standard and nutrient neutralitycityam.com
- A 300-home Build to Rent scheme that would have made an £8m profit in 2020 would now make a £6m losscityam.com
Why it matters
The housing crisis is described as having been building for the last 50 years, affecting millions of young people denied home ownership and families stuck in temporary accommodation. The viability of the construction sector is critical to addressing this crisis, as the paper notes that boosting demand without increasing supply will not solve the problem.
This issue is part of a broader political discussion regarding economic growth, as the paper was set up by Prosper UK to develop ideas for economic growth. The recommendations include a freeze on new regulatory burdens for at least three years and reforms to Section 106, indicating a potential shift in government policy priorities regarding business regulation.
What we don't know yet
- Will the Secretary of State for Business and Trade adopt the paper's recommendations for regulatory freezes or Section 106 reform?
- How will the proposed shared equity scheme be funded and implemented?
What would change this answer
— Other considerations
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Reporting
- cityam.comOct 14
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.