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Property Quorum - MHCLG Facing A Mountain: Costing More, Coping Less?

Property Quorum - MHCLG Facing A Mountain: Costing More, Coping Less?
Written by - Hamish McLay

There’s no denying that the Ministry of Housing, Communities and Local Government (MHCLG) has become one of the most heavily tasked departments since Labour came to power. With housing, planning, local governance and community integration all placed centre stage, the department now carries the weight of some of the government's biggest promises.

It’s an ambitious agenda – and on paper, it sounds like progress. Yet behind the policy headlines and ministerial statements lies a question that’s growing harder to ignore: can MHCLG realistically cope with what’s being asked of it? And if it can’t, how much of the burden will quietly fall to the taxpayer?

The list of new initiatives is long and growing. Labour’s pledge to build 1.5 million homes this Parliament has already triggered the launch of a New Towns Task-force. There are reforms in motion to accelerate planning decisions, particularly near train stations and commuter hubs, as well as renewed pressure to unlock land that’s sat undeveloped for years – including headline-grabbing sites like Northstowe in Cambridgeshire.
There’s also the revival of compulsory purchase powers being floated to get things moving where landowners are slow to act.

In parallel, the department is tasked with delivering sweeping reform of the rental sector through the Renters' Rights Bill, tackling building safety failures with more remediation funding, and playing a bigger role in community integration efforts.
Throw in a shake-up of local councils into unitary authorities and expanding the reach of metro mayors and devolution deals – and the job spec starts to look less like a workload and more like a wish list.

Here’s the question, can a department already struggling with delivery get through that list without dropping the ball?

Recent reports show that MHCLG is still grappling with its existing obligations. Of the 1,300-plus projects approved through the Towns Fund and Levelling Up Fund, barely 5% have reached completion. That statistic doesn’t just highlight slippage – it raises real questions about project management, oversight, and whether the civil service has the tools and people needed to execute Labour’s much larger vision.

At the same time, the Treasury announced it was wrestling with a £20 billion fiscal shortfall, and infrastructure projects are being reprioritised behind the scenes. If Labour wants to deliver fast and big, the cash has to come from somewhere – it’s not yet clear how much MHCLG will get, or when. And throwing money at the problem won’t solve capacity gaps, especially in a department going through internal change.

The Office for Local Government is being shut down. A new local audit system is being designed. That kind of structural overhaul brings its own disruption – just as the government needs its departments firing on all cylinders.

This is where it becomes more than just a question of policy delivery. It’s a matter of public value. Taxpayers are watching closely. They’re already funding departments to deliver previous pledges that remain unfulfilled. Now they’re being asked to back another wave of high-stakes reform – but there’s no concrete plan to show how delivery will be faster, smoother or more efficient than it’s been to date.

If MHCLG falters under the weight of expectation, it’s not ministers who’ll pay the price – it’s the public. That could mean further delays to vital housing, rising costs with little visible progress, and another round of frustration with the political process.

This week’s Property Quorum podcast tackles this exact challenge. Is MHCLG being set up to fail? Or are we simply asking it to do too much, too quickly, without fixing what’s already broken? We’re live at 10am on Thursday, as always, with the usual crew.

Gareth Wax, who hosts, directs and produces the show, will be in the chair. I’ll be joining him alongside our regular contributors – Juliet Baboolal, an experienced property lawyer and partner at gunnercooke, and Chris Gilsenan, joint owner of Root Home and a seasoned developer and investor. Together, we’ll discuss what some of this really means for those working at the coalface of housing, development, conveyancing and local delivery.

It’s not a finger-pointing exercise – these episodes are conversations, not take downs. We’ll be exploring the realities, the pressures, and whether there are any early signs of MHCLG turning a corner – or whether we’re simply witnessing the start of a long, expensive uphill climb.

Tune in live this Thursday at 10am. We’ll keep it grounded, honest, and as always, focused on what matters to professionals across the property sector. And we want your input – whether you’re a lawyer, a planner, a builder, or someone trying to get a development over the line, the pressure on MHCLG affects us all. Don’t forget also, our podcasts are recorded.



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Friday, 09 May 2025