10 Ways The Labour Government Aim To Improve The Property Market
This morning, the UK awoke to a landslide Labour party majority, ushering in a new era in British politics as Sir Keir Starmer takes his place as Prime Minister. For many home-owners and first-time buyers, whether in our very own Chandler’s Ford or more widely across the UK, thought turns to how the incoming government aims to improve the property market. The party’s manifesto outlines an host of prospective changes with the aim of making the property market more accessible, sustainable, and fair. Here are ten key ways that the changed Labour party plan to improve the property market:
The dream of homeownership is now out of reach for too many young people. The Conservatives have failed to act even though the housing crisis is well known to be one of the country’s biggest barriers to growth. Labour will get Britain building again, creating jobs across England, with 1.5 million new homes over the next parliament.
1. Building 1.5 Million Homes
One of Labour’s most ambitious goals is to build 1.5 million homes over the next five years. This plan includes the creation of new towns and large-scale communities across England, as well as urban extensions and regeneration projects. The aim is to alleviate the housing shortage and provide more options for prospective homeowners. This would keep the party in line with existing house building targets of 300,000 new units per year, as instituted by the past Conservative government but crucially Labour have pledged to reintroduce mandatory housebuilding targets and pledged to work with local authorities to reduce red tape and fast track brownfield and greyfield land development
2. Boosting Social and Affordable Housing
Labour intends to deliver the biggest increase in social and affordable housebuilding in a generation. This will be achieved by strengthening planning obligations to ensure new developments include a significant number of affordable homes. They also plan to modify the Affordable Homes Programme to maximize the number of homes built with existing funds, and support councils and housing associations in expanding their capacity to contribute to affordable housing.
3. Prioritising Social Rented Homes
The incoming government plans to prioritise the construction of new social rented homes. They will review the increased right-to-buy discounts introduced in 2012 and implement measures to better protect newly-built social housing. This focus is designed to preserve the existing social housing stock and ensure new developments meet the growing demand for affordable rental options.
4. Updating the National Policy Planning Framework
Labour aims to update the National Policy Planning Framework, including the restoration of mandatory housing targets. This update will ensure that all planning authorities have up to date local plans that aim to build as much sustainable housing as possible. The goal is to streamline the planning process and promote the construction of much-needed housing to combat the impact of the supply-demand imbalance.
5. Ensuring High-Quality, Sustainable Homes
The government is committed to building high-quality, well-designed, and sustainable homes. They plan to create places that enhance climate resilience and promote nature recovery. This includes building homes that meet nutrient neutrality standards without compromising environmental protections. Additionally, all private rental properties will need to achieve an EPC rating of C by 2030, contributing to a national Warm Homes Plan aimed at eliminating fuel poverty by the same year – the final impact on the Decent Homes Standard and/or any changes remain to be seen but it’s clear that the government has a firm focus on sustainability.
6. Supporting First-Time Buyers
To help first-time buyers, Labour will work with local authorities such as councils here in Chandler’s Ford and Eastleigh to give them the first chance to buy homes. They plan to end the practice of entire developments being sold to international investors before they are built, giving greater opportunity to local homebuyers instead. As such, local Chandler’s Ford homebuyers could find it easier to secure a local home in the years to come. Additionally, Labour plan to introduce a comprehensive mortgage guarantee scheme to assist those who struggle to save for a large deposit, with the goal of helping 80,000 more people get onto the property ladder.
7. Enhancing Local Authority Planning Capacity
Labour plans to support local authorities by funding additional planning officers, financed through an increased stamp duty surcharge on non-UK residents. They also aim to maintain the current stamp duty exemption for first-time buyers on homes priced up to £425,000, ensuring that this crucial support remains in place. This should make it easier for first time buyers across Chandler’s Ford to secure their very first home, especially if confidence in the markets supports the reduction of interest rates.
8. Prioritising Brownfield Development
Labour have pledged to adopt a “brownfield first” approach, prioritising the development of previously used land. They aim to fast-track the approval of urban brownfield sites and take a more strategic approach to greenbelt land designation and release, only using greenbelt plots where necessary. Lower quality ‘grey belt’ land will be prioritised, and new ‘golden rules’ will ensure that property development benefits both communities and nature as part of the party’s ongoing green agenda.
9. Cross-Boundary Strategic Planning
To improve regional coordination, Labour pledge to introduce new mechanisms for cross-boundary strategic planning. Combined and Mayoral Authorities will be required to plan for housing growth in their areas strategically. These authorities will also receive new planning powers and increased flexibilities to better utilise grant funding.
10. Rental Reform
Lastly, Starmer’s government claims it is committed to rental reform to protect tenants’ rights. They plan to extend ‘Awaab’s law’—which currently applies to social housing—to the private rental sector, requiring landlords to investigate and fix reported health hazards promptly. Additionally, they wish to ban no-fault evictions, providing greater security for renters.
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As your local property experts across Hampshire, the Rowe & Co team constantly have our finger on the pulse of local news and events impacting homeowners and buyers across the Chandler’s Ford region. To stay up to date with how these anticipated Labour policies could impact your neighbourhood, follow our LinkedIn, Facebook and Instagram channels, or send us any questions about the impact of the general election on your buying or selling journey using the form below.
