After exactly one year of the new Labour government, its biggest failures relating to the property market are ineffective planning reform and a lack of incentives for developers and investors.
That is according to a survey from high-net-worth private clients, which carried out in June 2025 by specialist real estate lender and investment platform, ASK Partners.
Labour’s planning and infrastructure bill includes measures to reform planning committees and compulsory purchase orders.
The government has pledged to build 1.5 million new homes within five years, with proposals to relax planning rules, identify new sites for development, reclassify parts of the green belt as “grey belt” land, and speed up planning approvals. Additionally, there is a commitment to increase affordable and social housing within new developments.
Daniel Austin, chief executive and co-founder at ASK Partners, said: “After a year under the new government, investors remain frustrated by the lack of meaningful planning reform and the limited incentives available to drive development.
“Our research shows that planning delays, political uncertainty, and fiscal unpredictability continue to act as major barriers – despite manifesto pledges to accelerate housebuilding.
“Nevertheless, over half of investors plan to increase their real estate allocations over the next 12 months, signalling confidence in the sector’s underlying fundamentals.
“Unsurprisingly, given the rapid global digitisation and growth of AI, data centres are expected to offer the greatest investment opportunity of all asset classes.
“Warehousing and logistics, and later-living housing also stood out as particularly attractive prospects along with build-to-rent, co-living and student accommodation.
“Real estate debt remains in high demand from investors seeking stable income, capital preservation, and a degree of insulation from wider market volatility.”
In order to support and grow the UK real estate market, investors believe the three main priorities should be to reform planning regulations and processes, offer tax incentives for investors and developers and attract international investment into UK property.
Despite concerns with the government’s first year and persistent structural challenges, the majority (51%) plan to increase their allocation to real estate over the next year, with data centres, warehousing & logistics, and later-life housing identified as the greatest opportunities.
Austin added: “To truly unlock the potential of the UK property market, investors want to see planning reform prioritised, alongside tax incentives for developers and policies that attract international capital. Delivering on these fronts would help accelerate development, tackle the housing crisis, and ensure real estate continues to drive economic growth rather than hold it back.”