In the wake of a resounding victory, the Labour Party has taken power, ending 14 years of Conservative rule. The new government, led by Keir Starmer, is focusing on addressing the country’s housing crisis with ambitious plans to overhaul housing policies, increase homeownership, and reform the private rented sector (PRS).
Propertymark, a leading industry body, is calling on the new administration to prioritize urgent action on housing issues. The organization emphasizes the need for comprehensive strategies to support landlords, boost housing supply, and enhance the quality of rental properties.
Housing Reforms
Labour’s housing manifesto includes significant changes such as:
- Reforming planning rules: Aiming to expedite the construction of 1.5 million homes using disused ‘grey belt’ land.
- Revamping the PRS: Implementing measures to regulate rents and enhance tenant rights.
- Boosting homeownership: Introducing long-term schemes to assist young people in buying homes.
- Empowering local councils: Providing councils with authority to repurpose empty commercial premises.
Propertymark supports these initiatives but stresses the importance of practical implementation. They advocate for local housing targets and the creation of desirable homes in attractive locations.
Taxation and Benefits
Within six months, Labour plans to review business taxation, replace the business rates system, and cap corporation tax at 25%. Propertymark urges the government to reconsider mortgage interest relief for landlords, a move they believe is crucial for maintaining a healthy rental market. The current ‘Tenant Tax’ under Section 24 has driven up costs for landlords, often resulting in higher rents for tenants.
Leasehold Reform
Labour is committed to enacting comprehensive leasehold reform, including the abolition of most new leasehold houses. Propertymark, having long campaigned for leasehold changes, supports these measures and emphasizes the need for practical and fair implementation.
Commercial Property
New powers will allow councils to take over and repurpose empty shops, a move Propertymark views positively. This initiative aims to rejuvenate high streets and provide affordable spaces for local businesses.
Energy Efficiency
Labour’s Green Prosperity Plan, funded by a windfall tax on oil and gas giants, aims to improve home energy efficiency. Propertymark welcomes sustained investment in this area but calls for detailed plans to ensure grants and funding are sufficient and targeted effectively.
Mortgages
Labour proposes a Freedom to Buy mortgage guarantee scheme to help first-time buyers. Existing homeowners will benefit from the principles of the Mortgage Charter, which include temporary interest-only mortgage payments and extended mortgage terms. However, buy-to-let mortgage customers are notably excluded from these benefits.
Private Rented Sector
Labour’s plans for the PRS include banning rental bidding wars and implementing a comprehensive Renters Reform Bill. Propertymark warns that such measures need careful consideration to avoid unintended consequences and ensure fair enforcement.
Judicial System
Addressing the court backlog is crucial for implementing housing reforms. Propertymark highlights the need for an efficient legal system to handle increased possession cases if Section 21 is abolished.
Propertymark remains committed to working with the new government to develop effective housing policies. They stress the urgency of addressing the housing crisis and call for practical, well-implemented solutions to benefit landlords, tenants, and prospective homeowners alike.