As the Labour Party soars approximately 22 points ahead in the polls, the UK housing market is under the spotlight. The housing sector remains one of the most critical issues in this general election, alongside promises on taxes and tackling the cost of living crisis.
Conservatives’ Housing Policies
The Conservatives have focused on promoting homeownership during their 14-year tenure. They introduced schemes like Help to Buy and Shared Ownership, aiming to help more people climb the housing ladder. Additionally, they provided stamp duty cuts for first-time buyers.
This week, Prime Minister Rishi Sunak promised further support for aspiring homeowners. He pledged to permanently abolish stamp duty for first-time buyers of homes up to £425,000 and committed to relaunching the Help to Buy scheme. Sunak also vowed to build 1.6 million homes if re-elected on July 4th.
Labour’s Approach to Housing
While both parties offer similar proposals for the property sector, Labour’s plans could differentiate once their manifesto is officially released, expected on Thursday.
Labour has previously pledged to build 150,000 new social homes annually, including 100,000 council houses, addressing the shortage of affordable homes and potentially easing pressure on the private rented sector. Last October, Labour set a target to construct 1.5 million new homes over five years if elected, a goal comparable to the Conservatives’. Labour also aims for at least 50% affordable housing in new developments.
The party has championed the use of “grey belt” land, referring to neglected areas like wastelands and disused car parks within the greenbelt, for construction before considering greenbelt land. Labour intends to enforce stricter build warranty standards for new properties to ensure long-term durability, fostering confidence in new-build investments.
Earlier this year, Deputy Leader Angela Rayner outlined plans for new “towns of the future,” proposing a New Town Commission to determine the sites for these developments. This initiative echoes the post-war Labour government, which created 32 new towns to address housing needs, including Milton Keynes and Stevenage.
Industry Reactions
Opinions within the housing industry vary widely on the best approach for the next government. A common consensus among experts is the urgent need for planning reform, with current holdups and backlogs hindering the necessary boost in housing supply.
Anthony Breach, associate director at the Centre for Cities think-tank, emphasized, “A construction boom would be really good for the economy. Planning reform would have a big impact on economic performance over the course of the next parliament — and the parliament after.”
Conversely, Labour’s Margaret Greenwood has opposed plans for 240 new homes on greenbelt land near Greasby in her Wirral West constituency. She stated, “I’m pleased that Labour is bringing forward these plans to address the housing crisis and that we’re going to have well-designed homes and affordable homes but it’s important that they’re built away from the greenbelt. There’s room for over a million homes on brownfield sites, so we should be building on those and having that urban regeneration that we desperately need to see.”
Regarding Rishi Sunak’s plans to renew the Help to Buy scheme, the National Residential Landlords Association commented, “Tenants who want to become homeowners should be supported to do so. Whilst incentivising landlords to sell to existing tenants has the potential to help, it will not reverse the damage to the rental market caused by tax hikes under recent Conservative governments.”