Press Release: Barriers to Planning in Development Pipeline Are Choking the £57bn Invested in UK Property Annually

Why It Matters

Planning bottlenecks are turning record capital inflows into unrealized development, risking a supply shortfall that could push UK property prices higher and undermine economic growth. Reforming the planning process is essential to translate investment into tangible assets and jobs.

Key Takeaways

• UK property investment hit $72bn in 2025, record US inflow $23bn
• 46% of manufacturers blame planning system for holding back business
• 43% say planning constraints limit growth and new investment
• Rising construction costs and capital rates amplify planning delays impact
• Make UK proposes a ‘growth test’ to monitor planning speed

Pulse Analysis

The United Kingdom’s property market has never seen more money chasing land. In 2025, investors poured an estimated $72 billion into the sector, with American capital alone contributing roughly $23 billion, according to a joint Make UK and Real Estate:UK study. This surge reflects confidence in the UK’s commercial, industrial and residential assets, even as construction costs climb and financing becomes pricier. The influx, however, arrives at a time when the country’s planning framework is under intense scrutiny for its sluggishness and complexity.

A parallel report from Make UK reveals that planning delays are not just an inconvenience—they are a strategic choke point. Forty‑six percent of manufacturers say the current system directly holds back their operations, while 43 percent cite it as a barrier to scaling and new investment. When developers face prolonged consent periods, the cost of capital escalates, eroding the profitability of projects that already grapple with soaring material prices. The net effect is a development pipeline that cannot absorb the available funding, creating a structural supply‑demand gap that could pressure rents and property values upward.

Policymakers are now being urged to act. Make UK’s proposal for a “growth test” would track the speed, cost and outcomes of planning decisions, especially for strategic industrial schemes. Streamlining fast‑track routes and reducing application complexity could unlock significant capacity for SME‑led projects and regional growth. If the UK can align its planning regime with the scale of capital inflows, it stands to convert record investment into tangible construction output, bolstering employment and sustaining its position as a premier real‑estate destination.