After Labour’s landslide win last week the industry have voiced concerns over ‘affordability’ as a key issue with the new government, alongside support for plans to bring back compulsory housebuilding targets.
Legal industry figures say that housing is a ‘pivotal’ issue after the dust has settled on the party’s win, with bosses at ASK Partners saying house price upticks and mortgage approvals ‘hint’ at economic recovery.
Labour pledged that they would build 300,000 new homes annually and prioritize home ownership for First Time Buyers but worries that similar pledges have been ‘unmet since 2004’ have been shared.
Daniel Austin, CEO and co-founder at ASK Partners, said: “Housing stands as a pivotal issue in the election fray, given its correlation with economic stability. Recent upticks in house prices and mortgage approvals hint at recovery, yet the persistent housing shortage threatens prolonged recession. The UK faces a crisis of affordability due to insufficient homes for rent and sale, negatively impacting GDP. Decades of social strain persist with little resolution in sight.
“We urge the implementation of a radical yet credible long-term plan to assuage market concerns. Their proposed target of 300,000 homes annually echoes longstanding government aspirations unmet since 2004. Four primary factors underpin this crisis: over-reliance on major housebuilders, politicised planning discouraging development, net loss of social housing, and post-Brexit labour shortages. Addressing these roots is imperative to alleviate the affordability crisis. Reinvigorating SME housebuilders is pivotal. Incentives should facilitate access to opportunities, including allocating small land plots for development and streamlining planning permissions for brownfield sites. Boosting skilled labour domestically and reforming the planning system are equally crucial. Independent decision-making and private sector assistance can expedite approvals and reduce costs. Prioritising social housing and incentivising brownfield developments are essential steps toward sustainable growth. Lenders must offer flexible financing to smaller developers. Despite potential temporary unpopularity, a steadfast commitment to a pro-growth agenda is necessary.
“The unique challenges facing the UK demand decisive action. Embrace this opportunity to steer us toward a balanced and sustainable housing market, ensuring prosperity for generations to come.”
Propertymark say they ‘welcome’ the new government and have re-iterated that ‘there are many challenges’ regarding housebuilding as demand outstrips supply across the nation.
Nathan Emmerson CEO of Propertymark has said: “Propertymark welcomes wide ranging engagement with the newly formed government regarding housing, over the coming months there are many challenges to address across the housing sector and we look forward to hearing more comprehensive detail on how manifesto promises will be delivered.
“It is essential housing plays a key priority moving forward, as we have witnessed many decades of housing demand drastically outstrip supply. Currently we have a situation that feels like it’s on a knifes edge, especially with a population that is predicted to grow to around 70m within the next ten years. There must be critical cross-party conversation that sets a clear strategy moving forwards, and for this to happen, we need broad stakeholder involvement, wide ranging infrastructure development and all involved must look to the better use of technology for both insight and ongoing delivery.”
Other industry heads say that they ‘stand ready to work for a vision of a thriving and beautiful countryside for everyone’ with the CPRE’s director saying as the new government settles into office they will be ‘making sure that countryside and rural communities are firmly on the agenda’.
CPRE director of policy, campaigns and communications Elli Moody said: ‘We stand ready to work with the new government to deliver our vision of a thriving and beautiful countryside for everyone.
‘In its manifesto, Labour committed to doing things we have long campaigned for: protecting the Green Belt, making homes more affordable and creating a land use framework that joins up decision making about our finite land.
‘With a local group in every county we’re equipped with an understanding of how policy change impacts real people. Together we want to help the government solve some of the major challenges we face today.
‘We will always stand up for the countryside and advocate strongly for common sense solutions to the problems that face our country and our planet. We want the new government to show that it recognises the value of the countryside and the people who live there. By committing to a new spatial plan for renewable energy infrastructure, ambitious targets for more social homes and a planning system with local communities at its heart, they would have the opportunity to do just that.
‘The next few weeks are crucial. As the new Labour government assumes office, we’ll be working to make sure that our countryside and rural communities are firmly on the agenda.’
Commentary from Jonathan Pearson, director at Residentially, a chartered surveyors firm specialising in affordable housing, says that with the previous government affordable housing ‘took a back seat’ and noted that there have been 16 different housing ministers since 2010.
He said: “After many years of affordable housing taking a back seat, with no less than 16 housing ministers since 2010, the sector is in desperate need of a sustained and stable approach to tackling the critical issues facing the country, including rising rents, a falling number of new homes being developed and record-high social housing waiting lists.
“In response, Labour has pledged to significantly boost the supply of affordable homes across the UK, along with a much-needed focus on planning reform. The real test will be in the ability of any new policies to increase affordable and sustainable housing whilst meeting local community needs, but I do know the affordable housing developers we work with are certainly hopeful and optimistic for the renewed approach and new opportunities a Labour government should now bring.”
Affordability has been noted as an area of concern alongside reaching targets.
Nick Hale, Chief Executive Officer at Movera, a group of home moving businesses including ONP Solicitors, commented: “There is no doubt this has been an historic election, and a landslide victory for Labour.
“Big challenges such as affordability lie ahead for the new Government. In its manifesto, Labour prioritised maintaining current stamp duty exemptions for first-time buyers. However, these are set to expire next April which could create uncertainties. If the Government does not extend the higher threshold, first-time buyers could face significant tax increases. Whatever it decides, though, the new Government must ensure it consults with the industry first. The sector needs to time to prepare for change rather than having last-minute announcements sprung upon us.
“As the new Government beds in, our focus at Movera will continue to be on supporting those looking to move or remortgage to make the homebuying experience as easy as possible.”
