Prosper UK commission calls for regulation freeze and capped shared equity scheme

A housing commission convened by Prosper UK and chaired by former housing minister Gavin Barwell has called for a three-year freeze on new regulatory burdens and a fee-funded shared equity scheme for first-time buyers.

The report, Solving the Housing Crisis: A Plan to Make Homes More Affordable in Every Postcode, has now been published. Prosper UK said the commission found housebuilding held back on two fronts: weak consumer confidence that leaves builders unable to sell homes already under construction, and rising costs against flat prices that have made many consented schemes unviable.

The commission said half of the £76,000 rise in the cost of building a new home since 2020 comes from regulation, policy and tax. It said a 300-home build-to-rent scheme that would have made an £8m profit in 2020 would now lose £6m.

Gavin Barwell, chair of the Prosper UK Housing Commission, said: "Boosting demand without increasing supply will help a few people at the expense of everyone else, and tackling viability without tackling demand will make little difference."

The recommendations

On viability, the commission recommended freezing new regulatory burdens for at least three years, a two-part test for obligations placed on new housing, and limiting Section 106 agreements to what a development itself needs.

On demand, it proposed a temporary, targeted shared equity scheme for first-time buyers of new, energy-efficient homes, capped at about a fifth of sales on each site and funded by an industry access fee.

On supply, it called for a National Planning Service to handle major applications, a national Green Belt review that protects land preventing sprawl and settlements merging, and higher-density development as standard.

On renting, the commission recommended cutting stamp duty on build-to-rent developments, standardising their Section 106 agreements, ruling out rent controls in law, and a Public Build to Rent programme on public land to deliver more social rent homes.

Government scheme

Prosper UK's release noted that the Government announced Your First Home, a shared equity scheme for first-time buyers of new homes, at the party conferences, and that the Conservatives pledged to reform Section 106.

The Ministry of Housing, Communities and Local Government (MHCLG) announced Your First Home on 26 September 2026. According to MHCLG, the scheme is expected to support 2.5% deposits backed by 20% government-backed equity loans for buyers of new-build homes from developers signed up to it. Developers will be expected to contribute when signing up to help cover costs, and further details, including costs and implementation timelines, are to be announced by the Chancellor at the Budget.

The figures

The commission cited 209,781 homes granted planning permission in England in the year to September 2025, which it described as the lowest since 2013. MHCLG's own statistical release for the same period gives a provisional figure of 208,000 homes, down 15% from 245,000 the year before, and does not characterise it against earlier years. MHCLG also recorded 28,500 residential applications granted by district planning authorities in the year to September 2025, down 8%.

Year to September	Homes granted permission (MHCLG)
2024	245,000
2025	208,000

The commission also cited 176,130 children living in temporary accommodation at the end of 2025. MHCLG's statutory homelessness statistics record 176,130 dependent children and 134,210 households in temporary accommodation in England on 31 December 2025.

Barwell said the Government is falling far short of its ambition of 1.5 million homes in five years and described the latest figures, particularly in London, as little short of catastrophic.

Lucian Cook, commission member and Director of Residential Research at Savills, speaking in a personal capacity, said: "There is no quick fix for the UK housing market, but there is still plenty that can be done to address the issues."

Background

When Prosper UK launched the commission, it said the body would be led by Barwell, who sits on the group's board. Initial members included Tim Collins, Group Corporate Affairs Director at Barratt Redrow, András Kárpáti of Cordia UK, Trevor Ivory of DLA Piper, James Knight of Arcadis, Jackie Sadek, Emma Duncan, economist Tim Leunig and former housing minister Mark Prisk. Richard Cook, Chief Development Officer at Clarion Housing Group, is also a member of the commission and spoke on the report in a personal capacity.

At launch Prosper UK said England added 208,600 net additional homes in 2024-25 and that the commission would publish its findings "this summer".

Prosper UK describes itself as having been set up to get the UK growing again and to be honest with voters about the difficult choices that takes. The Budget, at which the Government is due to set out the cost and timetable of Your First Home, is the next scheduled point at which its own demand-side plan will be fleshed out.