On 5 October 2026, Conservative shadow chancellor Andrew Griffith announced a proposal to reduce the cost of building new homes in England and Wales by £50,000. This reduction would be achieved by cutting existing regulations and taxes, a move the Conservatives believe could lower housing costs for buyers. These savings are based on estimates from the housebuilding industry, which claims that new regulations contribute significantly to the cost of construction.
However, experts have raised concerns about the potential consequences of these cuts. They warn that savings might lead to increased government spending on essential services like schools and roads. Additionally, scrapping environmental regulations could result in higher long-term energy bills for households. The Home Builders Federation (HBF) estimates that regulations and taxes since 2020 have already added £76,000 to the cost of building a new home, with the proposed cuts targeting about £42,000 of these costs.
Conservative Plans and Industry Reactions
The Conservatives have identified specific regulations they aim to scrap or reform, including the Community Infrastructure Levy, the Future Homes Standard, and Section 106 requirements. These regulations contribute to the cost of new housing by funding local infrastructure and enforcing environmental standards. The party claims that eliminating these could cut the cost of buying a new home by up to £50,000.
While the Conservatives are optimistic about passing these savings on to buyers, industry experts express skepticism. Noble Francis from the Construction Products Association highlights the challenges of dealing with the regulatory system, which can constrain building rates. With the Labour government falling short of its housing targets, experts question whether such savings are achievable without compromising on essential infrastructure and environmental standards.
What this means for newcomers
For newcomers to the UK, this proposal could impact the housing market, although it’s still speculative. If implemented, it might make home ownership more affordable by reducing construction costs. However, it might also lead to compromised infrastructure and higher energy bills if environmental standards are lowered. Understanding how the housing market works is key, especially as you navigate renting before considering buying.
It’s important to note that renting remains the most common starting point for newcomers. With changes in rental regulations, you should familiarize yourself with the current rules to protect your rights as a tenant. Our UK renting guide for newcomers can provide you with essential insights into dealing with the rental market under the new regulations introduced in 2026.
What you should do
- Stay Informed: Keep an eye on developments in housing policies. Understanding potential changes can help you make informed decisions about renting or buying in the future.
- Review Your Renting Rights: Familiarize yourself with the 2026 changes in the Renters Rights Act. This understanding will help you secure a tenancy and know your rights against unfair eviction or rent increases.
- Prepare Financially: Whether renting or buying, ensure you have a clear financial plan. This includes setting up a UK bank account for rent payments and managing potential costs like council tax and utility bills.
Frequently asked questions
What is the Community Infrastructure Levy?
The Community Infrastructure Levy is a charge on certain new developments in England and Wales. Councils use it to fund local infrastructure projects like roads and schools.
How might the Future Homes Standard affect me?
The Future Homes Standard requires new homes in England to meet higher energy-efficiency standards, which could result in lower energy bills in the long term.
What is Section 106?
Section 106 agreements can require developers to provide a proportion of social or affordable housing as part of a new development, impacting the availability and cost of housing.
Can these proposed savings actually reduce house prices?
While the Conservatives propose that cutting regulations could save £50,000, experts warn that these savings might not directly translate to lower house prices due to potential increases in government spending and future energy costs.
Source: BBC UK: read the original
