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New Hospital Programme awards 11 construction partnerships

The Government has taken another major step in delivering its long-term NHS infrastructure plans by confirming 11 construction partnerships under the New Hospital Programme (NHP). The agreements mark a significant milestone for the programme’s innovative Hospital 2.0 delivery model, which aims to build hospitals faster, more efficiently and at better value for taxpayers through standardised design and collaborative procurement.

The partnerships will deliver the first wave of major hospital projects using the Hospital 2.0 Alliance (H2A), bringing together NHS trusts and leading construction companies under a new collaborative framework designed to replace traditional procurement methods that have often delayed major public sector projects.

The announcement represents one of the most significant developments in the Government’s wider £37 billion New Hospital Programme, which aims to modernise England’s ageing hospital estate while creating greater certainty for the construction industry and supporting thousands of skilled jobs.

Hospital 2.0: A New Way to Build Hospitals

At the heart of the programme is Hospital 2.0, a standardised approach to designing, constructing and operating NHS hospitals.

Rather than treating every new hospital as a bespoke project, Hospital 2.0 introduces repeatable designs, standardised components and modern methods of construction. Around 80% of each hospital will follow common design principles while allowing the remaining elements to be tailored to local clinical requirements. The approach is intended to reduce design costs, speed up construction, improve quality and enable multiple hospitals to be built simultaneously.

The programme also focuses on improving patient outcomes. New hospitals will feature predominantly single-patient bedrooms, digitally enabled facilities, flexible clinical spaces, improved patient flow and sustainable building techniques. The standardised designs are intended to provide hospitals capable of meeting NHS needs for at least the next 60 years while enhancing infection prevention, staff wellbeing and operational efficiency.

Eleven Partnerships Confirmed

The Hospital 2.0 Alliance has matched ten leading construction organisations with 11 Wave 1 hospital schemes following a collaborative allocation process.

The proposed delivery partnerships include Airedale NHS Foundation Trust with GRAHAM; Royal Cornwall Hospitals NHS Trust with Willmott Dixon; Frimley Health NHS Foundation Trust with Sacyr UK; Hinchingbrooke Hospital with Kier Construction; Hillingdon Hospitals NHS Foundation Trust with Laing O’Rourke; James Paget University Hospitals NHS Foundation Trust and Queen Elizabeth Hospital King’s Lynn NHS Foundation Trust with Skanska; Mid Cheshire Hospitals NHS Foundation Trust with Integrated Health Projects; Milton Keynes University Hospital NHS Foundation Trust with Morgan Sindall Construction; North Manchester General Hospital with Bovis Construction; and West Suffolk NHS Foundation Trust with Dragados.

The collaborative model differs significantly from conventional procurement by creating long-term partnerships rather than one-off contracts. The intention is that lessons learned on one hospital can be rapidly applied across future projects, improving productivity, safety and consistency throughout the programme.

Cutting Bureaucracy and Speeding Up Delivery

The Government says the new arrangements will reduce procurement delays that have historically slowed major NHS capital projects.

Karin Smyth, Minister of State for Health, said: “For too long, the construction of new hospitals has been bogged down by bureaucratic procurement processes, even after full approval and funding was in place, and we’re determined to change that.

“The changes announced today are a major step forward in streamlining the procurement process. Patients can look forward to new hospitals being delivered quicker, industry can plan with certainty, and taxpayers can be assured that we are getting maximum value for their money.

“With stronger collaboration, shared learning and a boost for jobs, this further demonstrates this government’s commitment to the New Hospital Programme, providing world-class facilities for the NHS and helping the economy in the process.”

Learning from Every Project

One of Hospital 2.0’s defining features is the creation of a collaborative supply chain through the Hospital 2.0 Alliance.

Instead of contractors working independently on individual projects, the framework encourages knowledge sharing across every scheme. Construction partners will work to common standards for health and safety, quality, sustainability and productivity, enabling continuous improvement as each new hospital progresses.

The programme also places significant emphasis on industrialised construction methods, including greater use of off-site manufacturing, standardised building components, digital design and data-driven project management. These approaches are expected to reduce waste, improve programme certainty and help address skills shortages within the construction sector.

Delivering Better Hospitals

The first annual New Hospital Programme report highlights Hospital 2.0 as a key enabler for delivering future NHS infrastructure more efficiently following the programme’s reset in 2025.

The report states that the standardised design is now substantially complete, with prototype patient rooms already tested and final design products being shared with participating NHS trusts. The programme has also strengthened governance, commercial oversight and technical expertise through the appointment of its Health Delivery Partnership and the mobilisation of the Hospital 2.0 Alliance.

While challenges remain, including maintaining market capacity and delivering multiple large-scale projects concurrently, ministers believe the new delivery model provides a more realistic and sustainable framework for transforming the NHS estate.

For patients, the programme promises modern, digitally enabled hospitals designed around privacy, safety and clinical efficiency. For the construction industry, it offers a long-term pipeline of work with greater certainty. For taxpayers, the Government hopes Hospital 2.0 will deliver better value through standardisation, collaboration and reduced procurement delays.

Construction Government Policy House Building Nationwide Sureties

Angela Rayner reaffirms commitment to 1.5 million new homes

Housing Secretary Angela Rayner has reaffirmed the Government’s commitment to delivering 1.5 million new homes during the current Parliament, insisting she will not abandon one of Labour’s flagship housing pledges despite mounting economic and construction challenges.

Speaking after Prime Minister Andy Burnham placed housing at the heart of his new administration’s agenda, Rayner acknowledged the scale of the task but stressed that the target remains unchanged: “1.5m homes is a difficult target. It was when I made the target, but I’m going to keep the target, and I’m not going to be defeated.”

The comments come as the Government seeks to accelerate housebuilding through planning reforms, increased investment in affordable housing and a renewed emphasis on council house construction, with Burnham promising the largest council housebuilding programme since the post-war era.

Housing target remains central to Government plans

The commitment to build 1.5 million homes has been a cornerstone of Labour’s housing strategy, but recent figures have highlighted the scale of the challenge.

Higher construction costs, labour shortages, elevated borrowing costs and slower-than-expected housing completions have all raised questions over whether the target can realistically be achieved within the parliamentary term. Rayner herself has acknowledged that rising build costs have made the objective even harder to reach, although she has rejected suggestions that ministers are preparing to abandon it.

Alongside maintaining the target, Rayner has ruled out introducing rent controls, arguing that increasing housing supply remains the most effective long-term solution to improving affordability.

Construction industry welcomes ambition but calls for further action

The construction and housebuilding sectors have broadly welcomed the Government’s determination to increase housing delivery but warn that planning reform alone will not be enough.

The Home Builders Federation said the return of Rayner as Housing Secretary provides continuity and welcomed the Government’s commitment to housing. However, it stressed that wider barriers must also be addressed, including planning delays, viability issues, infrastructure investment, workforce shortages and the availability of development finance if the industry is to deliver homes at the required pace.

Industry experts have repeatedly highlighted shortages of skilled tradespeople, including bricklayers, electricians and plumbers, alongside supply chain pressures and rising material costs, as significant constraints on increasing housing output. These challenges have become more acute following several years of inflation across the construction sector.

Many developers also argue that greater certainty around planning decisions, faster approvals and continued support for affordable housing are essential to unlock new developments.

Housing sector backs renewed council housebuilding

Construction industry welcomes Burnham’s housing and skills ambitions — Official Portrait. Image: GOV UK

The Government’s renewed focus on council housing has been welcomed across much of the housing sector.

Responding to Prime Minister Andy Burnham’s pledge to expand council housebuilding, Gavin Smart, chief executive of the Chartered Institute of Housing, said:“Andy Burnham’s speech rightly puts housing at the centre of the national debate, recognising that a safe, secure home underpins people’s life chances and the country’s economic success. The focus on large-scale council housebuilding reflects the urgency of the housing crisis, but delivering on this ambition will require sustained investment and a whole-sector effort.

“CIH will continue to work with government, local authorities, housing associations and partners across the sector to help turn this ambition into reality – delivering the homes people need and the foundations for healthier, fairer and more prosperous communities.”

The Chartered Institute of Housing has consistently argued that increasing the supply of affordable and social housing is critical to reducing homelessness, easing pressure on temporary accommodation and improving long-term economic productivity.

Balancing ambition with reality

While many within the housing and construction sectors support the Government’s ambition, most agree that delivery will require far more than political commitment alone.

The industry continues to call for sustained investment in infrastructure, expanded skills training, greater certainty for developers and long-term planning reform to enable local authorities and housebuilders to accelerate delivery.

Burnham has pledged to publish a wider 10-year plan for Britain later this year, with housing expected to remain a central pillar of the Government’s economic growth strategy. The Prime Minister has also made ending rough sleeping and expanding council housing early priorities of his administration.

For construction firms, developers and housing providers, Rayner’s latest comments provide reassurance that the Government remains committed to its headline housing pledge. However, with completions still well below the level required to meet the target, the coming years will determine whether planning reforms, investment and industry collaboration can translate political ambition into homes on the ground.

Construction Government Policy Nationwide Sureties

Construction industry welcomes Andy Burnham’s housing and skills ambitions

The UK construction industry has broadly welcomed Prime Minister Andy Burnham’s commitment to a major council house building programme and a renewed focus on technical education, while stressing that success will depend on long-term investment, planning reform and tackling persistent skills shortages.

In his first speech outside 10 Downing Street, Burnham pledged to “build more council homes”, overhaul the education system to help more young people into work, continue devolving power “to every postcode in the land”, re-industrialise parts of the country left behind since the 1980s and publish a new 10-year plan for Britain later this year. He also promised immediate measures to ease the cost-of-living crisis and give households “some breathing space”.

For the construction sector, the speech offered a strong indication that housebuilding, skills and regional investment will sit at the heart of the new government’s economic agenda.

Burnham’s commitment to expanding council housing echoes proposals he outlined during his Labour leadership campaign, where he described plans for the biggest council house building programme since the post-war era. His wider vision includes making greater use of public land, strengthening British supply chains through public procurement and creating stronger links between technical education and industry.

The emphasis on vocational education has also been welcomed across construction, an industry that continues to face acute labour shortages. Burnham said the education system would place greater emphasis on helping young people into work while improving mental health support, signalling a move towards greater parity between academic and technical routes. His approach is widely expected to build on the Skills Bootcamps introduced under Sir Keir Starmer’s government.

Industry commentators believe a stronger pipeline of skilled workers could help address one of construction’s biggest challenges. Employers have consistently warned that shortages of bricklayers, carpenters, electricians, plumbers and site managers remain one of the biggest barriers to increasing housing delivery and infrastructure investment.

Reaction from across the sector has been cautiously optimistic. Industry publication PBC Today noted that while Burnham’s speech contained relatively few policy details, his commitment to building more council homes and reforming education represented encouraging signals for construction. It added that expanding technical education and potentially extending Skills Bootcamps could further strengthen recruitment into the industry.

However, many organisations are now looking beyond the rhetoric and awaiting greater detail. The promised 10-year plan, expected later this year, is likely to be closely scrutinised by developers, contractors, housing associations and local authorities seeking clarity over funding, planning reform and procurement.

The proposed devolution of power has also generated interest across the sector. Burnham pledged to continue transferring decision-making away from Westminster and into local communities, arguing that growth is best delivered locally rather than through centralised government. For construction businesses, greater local control over housing, infrastructure and regeneration could accelerate decision-making and allow investment to better reflect regional priorities.

Similarly, Andy Burnham’s ambition to re-industrialise areas that have struggled since the 1980s could create significant opportunities for construction firms involved in manufacturing facilities, industrial estates, transport infrastructure and energy projects. His commitment to favour British industry through public procurement may also provide additional opportunities for domestic construction supply chains.

The government’s focus on reducing living costs has indirect implications for the industry as well. If successful, measures to improve affordability and increase housing supply could stimulate demand across the residential construction market while supporting wider economic confidence.

Nevertheless, analysts have cautioned that delivering a large-scale council house programme will not be straightforward. Rising construction costs, planning constraints, limited availability of development land and continuing skills shortages all present significant challenges. Recent analysis has questioned whether the proposed investment alone would be sufficient to deliver housing at the scale suggested without broader planning and private sector reforms.

The coming months will therefore be critical. Construction businesses are expected to welcome the government’s clear recognition of housing and skills as national priorities, but they will also be looking for practical measures to support delivery.

If Andy Burnham’s forthcoming 10-year strategy combines sustained investment, planning reform, expanded technical education and genuine devolution of power, it could provide the construction industry with the long-term certainty it has sought for many years.

For now, the sector appears encouraged by the direction of travel. The challenge facing the new Prime Minister will be turning ambitious commitments on housing, education and regional growth into projects that can be delivered on the ground.

Government Policy Homes England House Building Nationwide Sureties

MP’s call for the use of historic buildings as homes

A hard-hitting new report from Parliament’s Culture, Media and Sport (CMS) Committee has warned that the UK’s approach to protecting its built heritage is “failing miserably”, as leaking roofs, crumbling brickwork and vacant premises continue to blight historic buildings across the country.

Published on 13 July 2026, Protecting Built Heritage is the result of an 18-month inquiry into the funding, planning and workforce challenges facing the UK’s historic environment, from listed buildings and places of worship to industrial heritage and conservation areas. The committee received 113 written submissions and held five oral evidence sessions with heritage charity leaders, architects, church officials, local authorities and government ministers.

https://depositphotos.com/portfolio-60530558.html?content=photo

The report’s headline finding is stark: Historic England estimates that up to 670,000 homes could be delivered by bringing vacant or under-used historic buildings back into residential use, equivalent to almost half the government’s target of 1.5 million new homes by 2029. Yet the committee found this potential remains largely untapped, with reuse still treated as an afterthought rather than a priority in housing and planning policy.

“A Deep Complacency”: The Chair’s Verdict

Dame Caroline Dinenage MP, Chair of the CMS Committee, did not mince her words when the report was published. “Old buildings and other pieces of our past play a vital economic, social and cultural role in our communities, but the sight of leaking roofs, crumbling brickwork and vacant premises illustrates how the current policy approach to heritage is failing miserably to support either its protection or potential,” she said.

She went further, criticising the government’s ambition on housing: “Historic England says that there is potential to create a whopping 670,000 new homes and yet the government’s approach reveals a deep complacency, is devoid of ambition, and shows a complete lack of imagination.”

She called for a fundamental shift in mindset, arguing that “‘reuse first’ should be the guiding principle, with a heritage to housing scheme offering a clear win-win by preserving our historic buildings and helping to meet the pressing need for new homes.” She also pressed ministers to address funding gaps and the skills shortage that is undermining the sector’s ability to carry out repairs.

Dame Caroline reserved particular criticism for double standards in how public and private heritage assets are treated, noting that “it also shouldn’t be right that private owners face significant obligations to protect historic buildings, while government departments are able to allow heritage assets to rot at public expense.” She warned that continued deterioration risked “not just links to our past but… opportunities for economic growth and regeneration in our communities.”

Learning from Italy’s €1 Homes Scheme

Among the report’s central recommendations is a call for a UK “heritage-to-housing” scheme modelled partly on international examples, most notably Italy’s much-publicised €1 homes initiative, which sells historic properties cheaply on condition that new owners restore them.

Tanya Szendeffy, Senior Conservation and Design Officer for Lewes and Eastbourne Councils, told the inquiry that a similar approach could be adapted for British conditions, suggesting “a company could be formed between local government and the developer which would ideally be the local community who can then rent etc to whomever they wish.” The committee acknowledged the Italian scheme has not been without problems, including heavy renovation costs and speculative purchases, and recommended any UK version include strong safeguards for genuine long-term occupation.

Industry Voices: “The Greenest Architecture Is the Building That Exists”

Witnesses were united in stressing that active use, not preservation in aspic, is the best safeguard for historic buildings. Ben Cowell, Director General of Historic Houses, told the committee “the best protection for a building in the long term is for it to be occupied, used, utilised, lived in and loved.” Camilla Finlay, Director of Clews Architects, made a similar point, observing “our greenest architecture is the building that exists.”

The report also flagged deep concern about the specialist skills pipeline. Emma Squire, co-Chief Executive of Historic England, warned that “76% of heritage construction organisations cannot find people with relevant skills when they go out to market and one in six are turning down work due to skills shortages,” adding that the sector faces an additional 105,000 jobs a year in demand through to 2050 it currently cannot fill.

On funding, the Heritage Alliance told the inquiry that 81 per cent of heritage organisations it surveyed cited a lack of funding as a major concern, with a third ending the last financial year in deficit. Reverend Paula Griffiths, a retired Church of England priest, criticised the closure of the Listed Places of Worship Grant Scheme, arguing “without it, the cost of all repair schemes will increase by 20%, whether or not the parish are successful in any grant application.”

VAT, Planning and the Public Estate

The report is also sharply critical of the current VAT regime, which charges 20 per cent on repairs and alterations to listed buildings while new-build construction is largely zero-rated. Witnesses described this as a “catastrophic” burden on major restoration projects, and the committee has urged the Department for Culture, Media and Sport to open formal talks with the Treasury on targeted relief.

MPs were equally scathing about the government’s own record as a custodian of heritage. Responsibility for publicly owned buildings, including former Ministry of Defence sites, is spread across departments with weak oversight and no mechanism to enforce standards, leaving public assets to fall into avoidable disrepair.

On planning, the committee welcomed reforms recognising reuse of vacant buildings as a public benefit, but warned changes may not go far enough to tackle the delays discouraging investment in historic buildings.

What Happens Next

The government is now expected to respond formally to the committee’s recommendations, which include a national dataset on the condition of heritage assets, protected training pathways for endangered heritage crafts, and embedding heritage considerations within the One Public Estate programme. The committee’s message is unambiguous: without urgent reform, the UK risks losing not only irreplaceable pieces of its past, but a substantial opportunity to tackle the housing crisis and drive local economic growth.

Civil Engineering Government Policy News Public Works Contract

Northern Powerhouse Rail faces HS2-style risks unless lessons are learnt

The government’s flagship Northern Powerhouse Rail (NPR) programme risks repeating many of the costly mistakes that plagued HS2 unless governance, planning and cost control are significantly improved, according to a damning report from the Public Accounts Committee (PAC).

In its latest report, the influential cross-party committee warns that, despite renewed political commitment to improving rail connectivity across the North of England, there remains considerable uncertainty over the project’s scope, delivery and affordability. Perhaps most significantly, MPs question whether the scheme can realistically be delivered within the government’s £45bn funding cap when much of the railway has yet to be fully designed or costed.

Northern Powerhouse Rail faces HS2-style risks unless lessons are learnt — Manchester Piccadilly Station. https://depositphotos.com/portfolio-7196216.html?content=photo

The PAC concludes that the Department for Transport (DfT) has failed to demonstrate a convincing plan for delivering NPR within budget and has not provided sufficient evidence that it has learnt the lessons from the failures that beset HS2. The committee is particularly concerned that key decisions on routes, capacity, governance and delivery remain unresolved more than a decade after Northern Powerhouse Rail was first proposed.

Clive Betts MP, deputy chair of the Public Accounts Committee, said: “The government’s growth strategy earlier this year signalled that there is still an appetite to finally deliver the transport infrastructure the North so badly needs. But the spectre of HS2 hangs over Northern Powerhouse Rail.

“Our Committee has heard troubling echoes of the same mistakes in loose governance that HS2 made early on, and so much of the project remains almost impressionistic, twelve years on. HS2 have even been brought on board to develop NPR’s own plans. As HS2 has been a casebook example of how not to run a major project, so their involvement in NPR does not fill us with confidence.

“Both the Treasury and DfT have questions to answer about the project’s £45bn funding cap. Given the fact that this project has not been fully scoped or designed, it is hard to see how the government was able to arrive at a hard £45bn cap.

“We have therefore written to the acting accounting officer asking that question. We need to know how this figure was arrived at and how DfT will keep to it. Capping a project’s funding before it was even designed or costed feels like putting a roof on a house before the foundations are even laid. We also need to understand how mayoral authorities will have enough scrutiny for this project to be delivered successfully.

“Northern towns and cities desperately need better connectivity, and the growth that it will provide; what they and this Committee need right now, is a clear and deliverable plan to achieve that.”

The committee’s concerns centre on the £45bn funding cap announced as part of the government’s transport strategy. MPs argue there is little evidence explaining how this figure was calculated, particularly when the overall programme has yet to be fully scoped. Without detailed engineering designs and reliable cost estimates, the PAC believes there is a significant risk that NPR could follow HS2’s trajectory of escalating costs and repeated revisions.

The report also raises questions about governance. It highlights the involvement of HS2 Ltd in developing plans for the Liverpool-Manchester section of the railway, arguing that the company’s record on cost estimation and programme delivery does little to inspire confidence. MPs warn that unless governance arrangements are strengthened from the outset, the project could repeat many of the structural weaknesses that contributed to HS2’s well-documented difficulties.

Beyond governance, the PAC identifies wider delivery risks. It says there remains uncertainty over how local authorities and combined mayoral authorities will oversee the programme, while planning, environmental mitigation and biodiversity requirements could place additional pressure on costs. As seen on HS2, environmental obligations have the potential to add significant expense if they are not properly managed during the design stage.

The committee nevertheless recognises the economic importance of Northern Powerhouse Rail. Better east-west rail connectivity between cities including Liverpool, Manchester, Bradford, Leeds, Sheffield, Hull and Newcastle is widely regarded as essential to improving productivity, supporting housing growth and creating a more balanced national economy. The PAC says its criticism is intended to improve the likelihood of successful delivery rather than question the need for investment itself.

The Department for Transport has rejected suggestions that NPR will become another HS2. Responding to the report, a DfT spokesperson said: “NPR will not repeat the mistakes of HS2 which is why we accepted all the recommendations of the James Stewart Review and are taking a disciplined, phased approach, completing detailed technical work with all stakeholders before fixing precise choices for major infrastructure.

“Since announcing NPR in January, we have worked closely with Mayors to take the project forward. New joint partnership forums are already overseeing the next stage of development and Network Rail has begun developing engineering designs.”

Industry leaders have also stressed the importance of maintaining momentum while improving delivery discipline. The Northern Powerhouse Partnership has consistently argued that better rail connectivity is fundamental to unlocking economic growth across the North, while calling for greater fiscal devolution and stronger collaboration between central government and regional leaders to ensure projects can be delivered effectively.

The PAC’s report serves as a stark reminder that delivering major infrastructure is about more than political ambition. Without clearly defined scope, robust governance and realistic budgeting, even projects with widespread support can struggle to deliver value for taxpayers.

For Northern Powerhouse Rail, the challenge is now clear. The government must demonstrate that it has genuinely learnt the lessons of HS2 by producing a credible delivery plan capable of meeting both the ambitions for the North and the realities of a £45bn funding envelope. Until then, MPs warn, there remains a real risk that one of Britain’s most important transport projects could find itself repeating the very mistakes it was expected to avoid.

Government Policy House Building News

Construction industry backs Andy Burnham’s housing-first agenda

The construction industry has broadly welcomed Andy Burnham’s first major speech as the newly elected MP for Makerfield and the frontrunner to become the next Prime Minister, in which he declared housing would be one of his top national priorities.

Burnham unveiled a 10-year plan aimed at raising living standards, rebalancing regional economies and accelerating council house building. Central to the speech was a commitment to make access to safe, secure and affordable homes a cornerstone of economic and social policy, with proposals for what could become the largest council house building programme in half a century.

For the construction sector, the announcement signals the prospect of a substantial pipeline of public-sector housing work, increased demand for contractors and suppliers, and renewed emphasis on long-term infrastructure and regeneration programmes.

CIH: housing must be treated as national infrastructure

The strongest endorsement came from the Chartered Institute of Housing, which said Burnham had “correctly recognised” that housing is fundamental to improving health, educational outcomes, reducing inequality and supporting economic growth.

In its official response, the CIH welcomed the decision to make housing a top national priority and backed the ambition to expand council house building. The institute argued that a successful programme would require a long-term funding settlement for social housing, reforms to land and planning systems, and greater powers for local authorities to borrow and invest in new homes.

The CIH also stressed that delivery would be as important as ambition. It called for certainty over grant funding, a stable policy environment and support for the housing workforce to ensure councils and housing associations could scale up development activity over the next decade.

Construction sector sees opportunity for long-term growth

Industry commentators have largely interpreted Burnham’s speech as a significant shift towards a more interventionist housing strategy, with council-led development playing a central role.

According to construction industry publication PBC Today, developers, housing providers and built environment organisations welcomed the focus on social and council housing after years of inconsistent policy. The publication reported that many in the sector see Burnham’s proposals as an opportunity to create a more predictable development pipeline and stimulate investment across regional construction markets.

Several industry voices highlighted the potential benefits for employment, skills and supply chains. A sustained council house building programme could provide greater certainty for contractors and manufacturers, helping firms invest in apprenticeships, modern methods of construction and capacity expansion.

Homelessness and affordability concerns

Matt Downie, Chief Executive of Crisis, said: “This was the speech of someone who understands a fundamental truth: a good, affordable home is the essential foundation we all need to build a life.

“We wholeheartedly welcome the prospect of a Housing First philosophy at the heart of Government. It would be transformative with benefits for employment, health, and economic growth. That’s why it must, as Andy Burnham says, be at the top of the country’s priority list.

“The level of ambition set out today – the biggest council house building programme since the post-war period – is exactly what is needed in the face of rising homelessness and record numbers of households in temporary accommodation.

“Words will need to turn into action, but from a housing and homelessness perspective this was one of the most hopeful speeches I’ve heard in many, many years.”

Economic and delivery questions remain

While the overall reaction from the construction industry has been positive, some analysts have raised questions about funding and implementation.

Burnham’s speech proposed a major expansion of council housing alongside wider plans for devolution, public investment and regional economic development. However, details on financing, borrowing arrangements and the pace of delivery have yet to be fully outlined.

Industry experts note that large-scale council house building will require not only capital funding but also planning reform, faster approvals, land assembly mechanisms and a significant increase in construction capacity. Skills shortages, material costs and local authority delivery capability remain potential constraints.

What it means for construction

For contractors, consultants and housing developers, Burnham’s housing-first agenda could mark one of the most significant public-sector housebuilding opportunities in decades.

If the proposed 10-year programme is implemented, it would create demand across the entire construction supply chain, from groundworks and infrastructure through to off-site manufacturing, retrofit and estate regeneration. The emphasis on council housing also suggests a greater role for local authorities as direct clients, potentially reshaping procurement and delivery models in the residential construction market.

The CIH’s response indicates that the housing profession is prepared to support that ambition, provided it is matched by long-term funding certainty and practical delivery reforms. For the construction industry, the message is clear: Burnham’s speech has been interpreted not simply as a political statement, but as a potential blueprint for a new era of publicly led housebuilding.

Construction Government Policy House Building Nationwide Sureties News

Keir Starmer meets mayors to accelerate housebuilding and infrastructure delivery

Prime Minister Sir Keir Starmer has met with mayors from across England as part of the Government’s latest push to accelerate housing, transport and infrastructure projects, signalling a renewed determination to remove barriers that have long delayed development and economic growth.

The meeting, which brought together regional leaders from across the political spectrum, focused on how devolved powers can be used to unlock stalled construction schemes, increase housing delivery and improve local transport networks. The discussions form part of the Government’s wider agenda to boost growth, tackle the housing shortage and give greater decision-making powers to local leaders.

At the centre of the talks was the challenge of speeding up housebuilding. With the UK continuing to face significant housing pressures, ministers are increasingly looking to mayors to help overcome planning delays, local opposition and bureaucratic obstacles that have prevented developments from progressing.

Prime Minister Keir Starmer said: “For too long, Britain has been held back by a system that says no, delaying projects, blocking growth and leaving communities behind.

“We’re turning that on its head by backing our mayors to get Britain building again, with spades in the ground and more jobs across the country. There will always be the naysayers and the blockers, but we cannot afford to give into them – because it will be the next generation that suffers.”

Starmer also highlighted the Government’s commitment to devolution, arguing that local leaders are best placed to understand the needs of their communities and drive economic development.

He added: “This government is backing mayors with the biggest devolution drive in a generation, putting real power in the hands of local leaders, because those with skin in the game know best what their communities need. That is the right thing to do for communities, and it’s the right thing to do for growth.”

A key outcome of the meeting was the Government’s pledge to support mayors in pushing forward projects that have stalled or been scaled back. Ministers also discussed a new “Right to Request” process that will enable mayors to seek additional devolved powers, further strengthening local control over housing, infrastructure and public services.

The Government believes greater devolution will help accelerate decision-making and improve the delivery of major projects. Recent announcements have already included proposals to give mayors more influence over transport schemes, innovation funding and strategic development initiatives.

Among the strongest supporters of the initiative is West Yorkshire Mayor Tracy Brabin, who has consistently argued that improved transport infrastructure is essential to unlocking economic growth and supporting new housing development across the region.

Brabin stated: “We have ambitious plans for our region and a Mass Transit network is a key part to unlocking our untapped potential which will boost growth and put more money in people’s pockets.

“With backing from the government and more powers devolved to mayors who know their areas best, we will transform West Yorkshire.

“Building the Mass Transit system our region needs will benefit the economy, strengthen connections, and improve lives for generations to come.”

The focus on housing comes at a critical time for the construction sector. Industry leaders have repeatedly warned that planning delays, skills shortages, infrastructure constraints and uncertainty around development funding continue to hamper the delivery of new homes.

Neil Jefferson, chief executive of the Home Builders Federation, recently described falling planning approvals as “disastrous” for both the industry and the Government’s housing ambitions, warning that without urgent intervention there is little prospect of delivering the homes the country needs.

Construction industry observers have broadly welcomed the Government’s willingness to tackle project delays. Analysts suggest that giving mayors greater powers could help unlock housing and regeneration schemes, particularly where local transport improvements and housing growth are closely linked. However, they also caution that faster approvals alone will not guarantee delivery if issues such as infrastructure capacity, procurement challenges and development viability remain unresolved.

The meeting reflects a broader shift in Government policy towards empowering regional leaders and accelerating delivery on the ground. With housing affordability remaining a major political and economic issue, ministers are increasingly focused on ensuring that planning reforms and devolution measures translate into tangible construction activity.

For the construction sector, the success of the initiative will ultimately be measured not by announcements, but by whether more homes, transport links and infrastructure projects move from the drawing board to reality. As Starmer’s Government continues its drive to “get Britain building”, mayors are set to play an increasingly influential role in shaping the country’s development pipeline.

Construction Developers Government Policy Nationwide Sureties

Homes England and Richborough debt facility

The recent agreement between Homes England and Richborough for a multi-million-pound debt facility marks a significant intervention in England’s housing market. Positioned as one of the first deals under the newly created National Housing Bank, the partnership reflects a strategic shift towards tackling structural barriers in housing delivery—particularly the shortage of “consented land”.

This article explores the rationale behind the decision, the mechanisms involved, and the broader implications for housing supply, planning, and investment.

A Strategic Funding Intervention

The debt facility is designed as a flexible, long-term financing arrangement that enables Richborough to invest earlier and more extensively in land acquisition and planning applications. Unlike traditional development finance, this model focuses on the pre-construction phase—arguably the most constrained part of the housing pipeline.

Homes England has confirmed that the funding will support continued investment in new sites and accelerate planning activity across England, ultimately increasing the availability of land with planning permission.

Richborough’s role as a land promoter is central to this strategy. The company identifies land, secures planning permission at its own risk, and then sells “oven-ready” sites to housebuilders. By backing this stage of the process, Homes England is targeting a critical bottleneck in housing delivery.

Addressing the Planning System Bottleneck

One of the primary drivers behind the agreement is the growing inefficiency of the planning system. Decision times for major applications are now reportedly three times longer than they were a decade ago, creating delays that ripple across the entire development pipeline. (GOV.UK)

This slowdown has shifted the nature of the housing crisis. While access to development finance remains important, the more pressing issue is the limited flow of consented land. Without planning approvals, even well-capitalised developers cannot build.

By providing long-term capital, the debt facility enables Richborough to sustain momentum through extended planning timelines. This reduces the risk of stalled projects and ensures a steadier pipeline of sites ready for construction.

Scaling Up Housing Delivery

A key objective of the deal is to accelerate housing output in line with the government’s target of delivering 1.5 million homes during the current parliament.

The scale of ambition is substantial. The partnership is expected to help bring forward land capable of supporting more than 26,000 homes by 2030, with a projected gross development value exceeding £8 billion.

In the shorter term, Richborough plans to submit over 30 planning applications in 2026 alone, covering approximately 12,500 homes. This represents a significant increase in activity and highlights how access to capital can directly influence planning throughput.

The Role of the National Housing Bank

The agreement also serves as a test case for the National Housing Bank, a new government-backed vehicle aimed at unlocking housing and regeneration projects that the private market struggles to deliver independently.

Operating within Homes England, the Bank provides flexible financing across a range of structures, including debt, equity, and guarantees. Its purpose is not merely to inject capital, but to crowd in private investment and de-risk complex or long-term projects.

The Richborough deal illustrates this approach in practice. By supporting a land promoter rather than a housebuilder, the Bank is intervening earlier in the development lifecycle—where risks are higher but potential impact is significant.

Supporting the Wider Housing Ecosystem

Another important dimension of the agreement is its indirect impact on the broader housing sector. By increasing the supply of consented land, the facility benefits a wide range of stakeholders, including major housebuilders, housing associations, and small and medium-sized developers.

This is particularly relevant for SMEs, which often lack the resources to navigate complex planning processes independently. A larger pool of ready-to-develop sites lowers barriers to entry and promotes competition within the market.

Furthermore, the approach aligns with a “placemaking” agenda, ensuring that new developments are planned comprehensively before construction begins. This can lead to better-designed communities and more sustainable outcomes.

Economic and Market Implications

From an economic perspective, the deal reflects a growing recognition that housing supply constraints are as much about process as they are about funding. While increasing capital availability is important, it must be targeted effectively to address systemic inefficiencies.

The focus on land promotion suggests a shift towards upstream interventions—supporting the earliest stages of development to unlock downstream activity. If successful, this model could be replicated across other partnerships and regions.

However, the impact will not be immediate. As industry observers note, there remains a significant lag between planning approval and completed homes entering the market. This means that while the agreement may strengthen the pipeline, it will take time before it translates into increased housing supply on the ground.

A Long-Term Solution to a Structural Problem

Ultimately, the Homes England–Richborough debt facility is a strategic response to a structural issue within the UK housing system. By addressing the shortage of consented land and mitigating planning delays, the partnership aims to unlock a more consistent and scalable delivery model.

The decision reflects a broader policy shift towards proactive, government-backed investment mechanisms that work alongside the private sector. Rather than relying solely on market forces, initiatives like the National Housing Bank seek to intervene where barriers are greatest and impact is highest.

If the model proves effective, it could play a crucial role in reshaping how housing is financed and delivered in England—moving the sector closer to meeting long-term demand.

Developers Government Policy House Building Nationwide Sureties News

Stalled housing and employment sites to be unlocked

Thousands of new homes and jobs could be unlocked across England following the launch of a £165 million infrastructure fund aimed at removing barriers to stalled development sites. The UK Government’s new Growth and Housing Accelerator Fund will focus on delivering critical transport improvements needed to bring forward housing and employment projects that have struggled to progress due to funding constraints.

Set to launch in the coming weeks, the fund forms part of the wider Road Investment Strategy 3 (RIS3), a £27 billion plan to upgrade and maintain England’s motorways and major A-roads between 2026 and 2031. The initiative supports the Government’s broader ambition to deliver 1.5 million new homes during this Parliament while boosting economic growth and raising living standards.

The Growth and Housing Accelerator Fund is designed to bridge funding gaps for essential transport infrastructure, particularly at sites located on or near key strategic roads. By improving connectivity, the programme aims to unlock developments that have been delayed due to insufficient road access or capacity, enabling construction to begin and communities to benefit from new homes, jobs and local investment.

Secretary of State Heidi Alexander, said: “Too many housing and employment opportunities have stalled for years, held back by the infrastructure that wasn’t there to support them. This fund will pave the way for developments that have sat idle for too long, funding the transport links that stalled sites need to get moving and generating new jobs and opportunities for communities that deserve them. It is a deliberate choice – and a signal that this Government is serious about removing the barriers to growth.”

Housing Secretary Steve Reed, added: “For many people, the dream of a decent home, close to work, and with good connections to their community, has been out of reach. This government is firing on all cylinders to get spades in the ground faster so we can build new homes, bolster our transport links and create jobs in the places most in need. This is exactly the kind of targeted, practical action that will help us reach 1.5 million new homes and create thriving communities where people can put down roots.”

Delivery of the programme will be led by National Highways, which will invite local authorities to submit development sites for consideration. A rolling programme of funded schemes is expected to be published from the end of the 2026/27 financial year, providing long-term visibility for infrastructure investment and development planning.

National Highways Executive Director Elliot Shaw emphasised the importance of reliable road networks: “Reliable roads are crucial to housing developments. They shape where people want to live, where businesses want to invest, and where communities can thrive. This fund will help unlock the transport links needed for new homes and jobs and help the government achieve its ambitions on economic growth.”

At the core of RIS3 is a record £8.4 billion investment in renewing and resurfacing more than 9,000 kilometres of motorway and major A-road lanes. This will address a long-standing backlog of ageing infrastructure, including bridges, viaducts and concrete road surfaces. With around two-thirds of structures on the network now over 45 years old, the funding aims to extend asset life and improve safety and reliability.

The overall RIS3 programme is expected to support around 50,000 jobs across England over the five-year investment period, further reinforcing its role in driving economic activity alongside housing delivery.

By targeting infrastructure constraints that have historically delayed development, the Growth and Housing Accelerator Fund represents a strategic effort to align transport investment with housing and economic priorities. If successful, it could accelerate the delivery of new homes, unlock employment opportunities and help create more connected, sustainable communities across the country.

Government Policy House Building News

Long-awaited Future Homes Standard finally published

The UK Government’s long-awaited publication of the Future Homes Standard (FHS) on 24 March 2026 marks a significant milestone in the transition towards low-carbon housing. Designed to ensure that new homes are “zero-carbon ready”, the FHS introduces a comprehensive package of regulatory changes that will reshape how residential properties are designed, constructed and heated across England.

What is the Future Homes Standard?

The Future Homes Standard is a reform of Building Regulations aimed at dramatically improving the energy efficiency of new homes while reducing their carbon emissions. It forms a central part of the UK’s pathway to net zero by 2050, ensuring that homes built in the coming years will not require costly retrofitting to meet future environmental targets.

Following years of consultation and delays, the Government has now confirmed the framework and direction of travel, with full implementation expected by 2028 after a transitional period.

Long-awaited Future Homes Standard finally published — Image: GOV UK

Core requirements of the Future Homes Standard

At its core, the FHS mandates a substantial reduction in operational carbon emissions from new homes. Properties built to the standard are expected to produce around 75–80% fewer emissions than those constructed under 2013 Building Regulations.

A central provision is the move away from fossil fuel heating. New homes will effectively be prohibited from connecting to the gas grid, driving widespread adoption of low-carbon heating technologies such as heat pumps. This represents one of the most transformative aspects of the policy, fundamentally altering the UK’s domestic heating landscape.

The standard also places strong emphasis on building fabric performance. Enhanced insulation, improved airtightness and the reduction of thermal bridging are required to minimise heat loss and energy demand. Windows and doors must meet stricter efficiency thresholds, with lower U-values ensuring better thermal performance.

In addition, the FHS introduces more sophisticated methods for assessing energy use. The shift towards dynamic modelling tools, such as the emerging Home Energy Model, will allow more accurate measurement of a building’s real-world performance, including peak energy demand and smart technology integration.

Renewable energy generation is another key feature. The Government has indicated that most new homes will incorporate technologies such as solar panels alongside low-carbon heating systems, further reducing reliance on grid energy and lowering household bills.

There is also growing alignment with water efficiency targets, with proposals suggesting reductions in household water consumption to as low as 90 litres per person per day by 2030. While not yet a core regulatory requirement, this signals a broader sustainability agenda embedded within the FHS.

Implementation timeline and transitional arrangements

Although published in March 2026, the FHS will not apply immediately to all developments. The Government has outlined a phased implementation, with regulations expected to come into force later in 2026, followed by a transitional period lasting approximately 12 months.

Full compliance is anticipated for all new homes commenced from 2028 onwards.However, the announcement has already been accompanied by controversy, as ministers confirmed that the effective rollout has been pushed back, meaning many homes built in the interim may still rely on gas heating.

Industry reaction and criticism

Reaction across the construction and housing sectors has been mixed. On one hand, industry bodies and sustainability advocates have welcomed the clarity and long-term direction provided by the FHS. Proponents argue that the standard will deliver warmer homes, lower energy bills and greater energy security for households.

There is also recognition that the policy will stimulate innovation across the supply chain, accelerating the adoption of heat pumps, renewable technologies and high-performance building materials.

However, the publication has also attracted significant criticism. A key concern is the delay to full implementation, with experts warning that postponement could result in hundreds of thousands of new homes being built to outdated, higher-carbon standards.

Environmental groups and planning organisations have argued that the FHS does not go far enough to deliver genuinely zero-carbon homes. Some critics suggest that concessions to housebuilders have weakened the standard, potentially allowing developers to meet only minimum requirements while limiting innovation.

Particular controversy has centred on policy “loopholes”, including the continued allowance of certain high-emission features such as wood-burning stoves. Experts warn that these could undermine the ambition of achieving fully carbon-free housing.

There are also concerns about regulatory uniformity. Proposals to standardise requirements nationally may restrict local authorities from imposing more stringent sustainability standards, prompting fears that ambition could be diluted in areas seeking to lead on climate action.

From a commercial perspective, some developers remain cautious about the cost implications of the FHS. While long-term savings for homeowners are widely acknowledged, the upfront costs of compliance—particularly for low-carbon technologies and enhanced building fabric—continue to be a point of debate.

Conclusion

The publication of the Future Homes Standard represents a pivotal shift in UK housing policy, embedding low-carbon design and energy efficiency at the heart of new residential development. Its requirements—ranging from the elimination of gas heating to enhanced insulation and renewable energy integration—signal a clear move towards “zero-carbon ready” homes.

However, the success of the FHS will ultimately depend on its implementation. Delays, perceived concessions and ongoing industry concerns highlight the challenges of balancing environmental ambition with housing delivery and commercial viability. As the transition period unfolds, the effectiveness of the standard in delivering truly sustainable homes will be closely scrutinised by both industry stakeholders and policymakers.

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