Progressions within the United Kingdom's Construction Sector: June 2025 Update
Headline: UK Government Announces Major Investments in Housing and Infrastructure Sectors
The June 2025 Comprehensive Spending Review has set the stage for significant changes in the UK's housing and infrastructure sectors. The government has allocated a substantial £39 billion over ten years for affordable housing and committed to a £725 billion infrastructure investment programme over the same period.
Affordable Housing Boost
The £39 billion Affordable Homes Programme, with a ten-year horizon, is expected to provide a stable funding stream for housing providers, enabling them to plan and increase the supply of social and affordable housing. The creation of the National Housing Bank, with a £16–22 billion financial capacity, is designed to unlock over 500,000 homes and stimulate private investment of approximately £53 billion.
Infrastructure Investments
The £725 billion infrastructure investment commitment over the next decade is a strong signal of the government's commitment to long-term economic growth and decarbonization goals. This investment is likely to drive jobs and regional development, with a focus on clean energy, nuclear energy, and other infrastructure.
Impacts on the Sectors
The housing sector is expected to benefit from the significant, stable funding stream, enabling the increase in the supply of social and affordable housing. The National Housing Bank's financial tools, including lower-interest loans aimed at social and affordable housing, should reduce borrowing costs and unlock capacity to deliver more homes.
The infrastructure sector is likely to see increased investment in clean energy, nuclear, and other infrastructure, driving jobs and regional development. The emphasis on long-term planning and regional distribution suggests better coordination and potentially more infrastructure projects outside London and the South East.
Legal Reforms and Consultations
The second half of 2025 is expected to bring significant legal reforms and consultations affecting the commercial real estate sector in England, particularly in areas like residential long leasehold and commonhold, renters' rights, planning system support, and security of tenure reform.
In other legal developments, a High Court decision on vicarious liability and TUPE (Transfer of Undertakings (Protection of Employment)) has been made, and a consultation following the Supreme Court decision on the definition of sex in the Equality Act has been announced. The UK Regulatory Outlook for the coming period includes updates on various employment-related topics, such as immigration, skills thresholds, workforce strategies, and employer incentives.
The Serious Fraud Office has launched its first 'failure to prevent' bribery prosecution, and a consultation following the Supreme Court decision on the definition of sex in the Equality Act has been announced.
Looking Ahead
These investments represent a transformative approach emphasizing long-term funding certainty for housing and ambitious infrastructure growth. The impacts are expected to be significant on housing supply, safety standards, and sustainability initiatives in energy and beyond.
Stay tuned for upcoming events like the webinar, "Understanding MEES, EPCs, and Business Rates - Implications for Rent Reviews, Service Charges, and Tenant Improvements," scheduled for July 10, 2025. A previous webinar, "Seven decades on: The Landlord and Tenant Act 1954, recent case law, and the path to reform," is available on-demand.
[1] Source: [Link to source 1] [2] Source: [Link to source 2] [3] Source: [Link to source 3] [4] Source: [Link to source 4]
- The establishment of the National Housing Bank, with a £16–22 billion financial capacity, could potentially attract significant investments from private entities in the real-estate sector, as it's designed to unlock over 500,000 homes and stimulate private investment of approximately £53 billion.
- The upcoming legal reforms and consultations, particularly in the areas of residential long leasehold and commonhold, renters' rights, and security of tenure reform, may have a substantial impact on employment law, as changes in real-estate regulations could influence the workforce strategies and employer incentives within the property sector.
