King Charles III has announced around 40 draft laws, including plans to accelerate housebuilding and infrastructure development via a Planning and Infrastructure Bill, and to spread economic growth across the country via an English Devolution Bill, at today's State Opening of Parliament.

Reading a speech written by the new government, King Charles III has outlined the Labour Party's legislative programme. Real estate welcomed the commitments to key issues for the industry but expressed disappointment that areas such as business rates were not at the top of its agenda.

The King said that "securing economic growth will be a fundamental mission" of the government as it aims to create a new partnership with business and local people.

The government has pledged to establish an industrial strategy council and to "get Britain building again through planning reform" and accelerating the delivery of high-quality infrastructure and housing.

In its election manifesto, Labour promised to reform the system to help build 1.5 million new homes over the next five years and it is placing a lot emphasis on planning reform to meet this aspiration.

In separate commentary ahead of the speech, Labour said legislation will speed up and streamline the planning process to build more homes of all tenures and accelerate the delivery of major infrastructure projects.

It added: "By enabling democratic engagement with how, not if, homes and infrastructure are built – the major brakes on the planning system will be addressed to support sustainable growth."

The government also promised more rights and protection to people renting homes including ending no-fault evictions and reforming grounds for possession. There will also be draft legislation published on leasehold and commonhold reform.

Dominic Curran, head of communications at the British Property Federation, said it was very encouraging to see Labour’s continued focus on the built environment and the role it has to play in raising productivity levels and delivering economic growth.

"The property industry is a huge contributor to UK plc, accounting for 7% of gross value add and one in 13 jobs. We want to work with the government to build new homes, regenerate town centres and green the economy, and the Bills announced today are a good start to the new administration’s approach.”

Tina Paillet, president of Royal Institution of Chartered Surveyors, said the priority given to planning reforms was very positive. "Both housing and infrastructure are huge economic enablers; numerous studies have identified the positive correlation between GDP growth and infrastructure delivery. Today’s King’s Speech is yet another step in the right direction from Labour policymakers, who have pledged to 'take the brakes off Britain' by introducing an ambitious legislative agenda which will get the UK building again, improve living standards, and help deliver the infrastructure to power a net-zero economy. The actions across these will need to be linked to ensure success, and as RICS professionals work across all these agendas, they will collectively provide expertise needed to progress these missions."

Alistair Watson, UK head of planning and environment at law firm Taylor Wessing, said: "Brakes off – and foot to the floor. That’s the Government's clear, present, and full-blooded message on the need for planning reform, and its intent in the delivery of planning reform."

He added that the draft Bill that will go before Parliament will take time.

"The government has shown it recognises this by its intent for a reform by way of immediate policy announcements – the revised National Planning Policy Framework, onshore wind farms, and mandatory housing targets are three examples. If we want to feel immediate beneficial effects, the government needs to continue to make use of announcements to change policy. This will bring forward investment and development in real estate with confidence.

"We all need somewhere to be – to work, to live, to play – and the draft Bill on planning reform will give us all just that. The planning reform package recognises the reality of the situation that we are in – there is no 'my backyard'. Its 'our backyard' as a nation and we all need more development."

Nicola Gooch, planning partner at Irwin Mitchell, said that despite the high-profile position of planning reform in the speech, it was relatively light on planning related legislation. That said, while there were few surprises what was said was "needed".

Gooch said that if speed is the goal, then it makes sense to avoid too much primary legislation, "which can easily get bogged down in parliament and focus instead on the levers that are easier to pull – namely policy changes, such as the revised NPPF, and secondary legislation".

She added: "We do have a proposed 'Planning and Infrastructure Bill' referenced in the text of the speech, but its contents have been left perhaps deliberately vague. The lack of an express ‘New Towns Bill’ is perhaps a little surprising, but it may be sensible to get a little further along in deciding the location of those new settlements before the legislative framework for providing them is put in place."

Olivia Harris, chief executive of Dolphin Living, a charity which provides homes at intermediate rent in London, said: “Naturally, we broadly welcome the measures announced today in the King’s Speech to get Britian building again. Especially the commitment to building more homes of all tenures through reform of the planning process and increased land supply. However, it is vital that the new government does not see the delivery of housing in isolation, but as integral to its overall plan to raise productivity and economic growth through the provision of more homes to support workers on modest incomes in high value areas. In addition to meeting overall housing targets and delivering much needed social housing, local authorities should be given a duty to have regards to the wider needs of the community, both those relying on essential services and those working to deliver them."

There was immediate disappointment from property industry experts that no mention of business rates reform was made in the King’s Speech.

John Webber, head of business rates at Colliers, said it was a clear indication that this is not a priority for the new government and goes against its pledge to abolish the tax.

"After more than 30 years of mismanagement from successive governments, we now have a system with a multiplier at over 50p in the pound, which effectively means a 50% tax on property occupation, a complicated relief system with business rates deserts in some parts of the country and an appeal system that’s inefficient, lacking transparency and increasingly difficult for businesses to negotiate without an adviser. The current system is just not fit for purpose. This situation is unsustainable."

The government is committed to greater devolution of decision-making. Devolution is the movement of some decision-making powers from central government in Westminster to local bodies.

The King said: "My government believes that greater devolution of decision-making is at the heart of a modern dynamic economy and is a key driver of economic growth and my Ministers will introduce an English Devolution Bill. Legislation will be introduced to give new powers to metro mayors and combined authorities. This will support local growth plans that bring economic benefit to communities."

Ministers will also pursue "sustainable growth", the King said, "by encouraging investment in industry, skills and new technologies".

"These policies will enhance Britain's position as a leading industrial nation", he said.

A new council of the nations and regions will be set up to renew opportunities for the Prime Minister, heads of devolved governments and mayors of combined authorities to collaborate with each other.

Simon Peacock, head of regions at JLL, said plans for a new council of the nations and regions and making a success of the much-mooted industrial strategy will depend on a "watertight masterplan for the planning system".

"This will need to set out commitments to investing in the number, and quality, of planners to support decision making, developing a stricter rules-based approach for applications and clear alignment on the priorities for land use.

“True reform’s never easy, but unlocking the planning gridlock will attract the investment needed to spur the economic growth Keir Starmer’s government is targeting.”

The government also committed to a "clean energy transition". A Bill will be introduced to set up Great British Energy, a publicly owned clean power company headquartered in Scotland that will accelerate investment in areas such as renewable wind.

On top of this, local leaders will be allowed to "take control" of their local bus services with the introduction of a new bill, the King said.

A Bill will be introduced to improve the safety and security of public venues.

Ben Butterworth, associate, Charles Russell Speechlys, said Labour had committed to introducing "Martyn’s Law", and its inclusion in the King’s Speech was welcome.

"Since the introduction of the draft legislation in 2023, despite various reassurances, a further consultation earlier this year on the Bill’s potential impact and a high-profile public campaign led by Figen Murray whose son was killed in the 2017 Manchester arena attack, progress halted under the previous government."

"It is now clear that the aim of Martyn’s Law, to strengthen the security of public premises and events by requiring the property owner or occupier to put in place proportionate procedures, depending on the venue capacity, to deal with terrorism threats will become a reality. Property owners and occupiers will need to understand their duties, which will be backed up by sanctions for non-compliance.”

Claire Fallows, partner, Charles Russell Speechlys, said: “Labour’s pledge to tackle the UK’s planning issues is positive. The commitment to delivering new homes and support for energy and infrastructure projects is welcome, as is the call for local planning authorities to review Green Belt boundaries to release sensible sites for development. However, a change in mindset across the country, driven by strong central action, is needed.

"Balanced planning reform is welcome, but better funding and resourcing throughout the planning system are crucial. The commitment to appointing more planning officers is welcomed if roles can be filled. Investment in statutory authorities and the appeal system is necessary for timely decisions. Mechanisms to enable registered providers to fund more affordable housing must be part of the solution to the UK’s housing crisis.”

Chris Taylor, head of real estate at Federated Hermes and Chairman of MEPC, said it was positive that government was committing to a more holistic approach to tackling chronic housing shortages as delivering new sustainable communities will require long-term strategic planning, with infrastructure provision key to ensuring both environmental and societal outcomes are met.

He added the build-to-rent sector will play a vital role in delivering accessible housing for all by meeting demographic lifestyle changes and addressing affordability issues.

He warned that long-term, institutional capital still needs to be attracted to the sector. "It will be important not to repeat the mistakes made in cities such as New York and Berlin where investors have been deterred by recent changes in taxation.”

Irwin Mitchell's Gooch said the real question will be whether the planning and housebuilding policies can be delivered fast enough for their effect to be felt before the end of the term.

"Five years is not a very long time to turn around something as complex and contentious as our planning system. It looks, however, as if the government is, at the very least, determined to try.”