"Our research shows that planning delays, political uncertainty, and fiscal unpredictability continue to act as major barriers, despite manifesto pledges to accelerate housebuilding"
- Daniel Austin - ASK Partners
One year into the Labour government’s term, investors have expressed growing frustration over what they view as a failure to deliver meaningful planning reform and sufficient incentives for developers and property investors. According to new research conducted in June 2025 by specialist real estate lender and investment platform ASK Partners, these issues are seen as the administration’s most significant shortcomings in its handling of the property sector.
During its first year, the government reaffirmed its goal to build 1.5 million homes over five years. Proposed steps included relaxing planning rules, identifying new development sites, and reclassifying selected areas of green belt as “grey belt” land to enable construction. There was also a stated commitment to expand affordable and social housing provisions within new schemes.
Despite these commitments, ASK’s survey of high-net-worth private clients found that planning delays, political uncertainty and fiscal unpredictability remain the most pressing concerns for the UK real estate market over the next 12 months. When asked how the government could better support the sector, investors identified three core priorities: reforming the planning system, introducing tax incentives for developers and investors, and encouraging international capital flows into the UK.
Although structural challenges persist, 51% of respondents said they plan to increase their real estate allocations in the coming year. Key sectors highlighted as offering the most attractive opportunities include data centres, warehousing and logistics, and later-life housing.
The findings also indicate that real estate debt is seen as a resilient entry point for investors. It offers risk-adjusted returns backed by tangible collateral, consistent income through interest payments, and reduced volatility compared to equities.
“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,” said Daniel Austin, CEO and co-founder at ASK Partners. “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,” Austin added. “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.”
“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,” he said. “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.”
