First, we heard government was considering replacing Stamp Duty Land Tax (SDLT) with a national property tax on homes over half a million, then came speculation that council tax would be reformed. Then rumours circulated that homes over £1.5m could lose private residence relief, followed by reports that landlords could be required to pay National Insurance on rental income, and recently it’s also been alleged that stamp duty payments for buyers may be staggered rather than paid in one lump sum. The list goes on.

Policymakers’ habit of “kite-flying” — leaking nuggets of potential reforms to gauge public reaction — is creating a climate of hesitation and developers, investors and buyers alike are left second-guessing what’s coming next. This ambiguity is paralysing decision-making and stalling progress, and recent research by RICS revealed August saw new buyer enquiries fall for the second consecutive month.

The Home Builders Federation (HBF) recently revealed that planning permission approvals have plummeted and now sit at a record low not seen since 2012 — citing delays and under-resourced planning departments as major barriers. For SME developers in particular, these delays can create significant financial pressure.

Labour’s ambition to build 1.5 million homes over five years is commendable, and there are encouraging signs of intent. Former Deputy Prime Minister Angela Rayner previously voiced support for smaller housebuilders and called for more diverse housing stock. Her replacements — David Lammy, as Deputy PM, and Steve Reed, now Housing Minister — have echoed her sentiment, with a bombastic pledge to get Britain building.

We now need to see the government shift from ambition to action. There are several policy reforms that could help restore momentum.

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First, replacing the Help to Buy scheme could provide a much-needed boost for first-time buyers whilst supporting the delivery of newbuild housing. While not perfect, Help to Buy offered a vital stepping stone for many and helped stimulate demand. Second, raising the Lifetime ISA (LISA) house price cap would reflect current market conditions and make homeownership more accessible, particularly in high-cost areas, particularly in London and the Southeast.

For SME developers, streamlining the planning process is essential and the Infrastructure and Planning Bill cannot gain Royal Ascent soon enough. We support proposals to fast-track smaller developments and simplify biodiversity net gain requirements for modest schemes of nine homes or less. Introducing compulsory approval timelines and other accountability measures for local planning authorities could also help reduce delays and improve confidence in the system.

Elsewhere, the growing impact of climate change means sustainability must also remain central to any housing strategy. At Paragon, we’ve committed over £300m in lending to developers building energy-efficient homes through our flagship Green Homes Initiative, which offers a 50% reduction in loan exit fees for schemes where 80% of units achieve an EPC A rating. To empower both lenders and developers, we’d welcome further government support in this area.

We also recognise the growing role of institutional investment in housing delivery. Labour’s plans to work with build-to-rent providers like Blackstone reflect a pragmatic approach to scaling supply. However, it’s important to ensure that this model complements efforts to support SME-led development. A balanced mix of tenures and providers is the key to meeting diverse housing needs.

Ultimately, the housing crisis is complex, and there are many mountains to climb to address the challenge. Kite-flying only adds to the confusion. Developers and lenders alike are committed to building the homes our communities need, but we need urgency and clarity if we’re to turn the tide on housing delivery.