The Labour Party has just won the July 2024 General Election, marking the end of 14 years of Conservative rule. This has been met with a wave of reactions from the industry, with many viewing it as a “fresh start” to rejuvenate the sector and get Britain building again.
Recent national polls indicated that nearly half of the voters who prioritise housing were ready to back Labour. The Labour manifesto, unveiled in Manchester in June, resonated deeply with the electorate, particularly with its pledge to “kickstart growth” in the housing sector. This commitment, described as a “dream” for the young aspiring to own their homes.
Labour leader Keir Starmer has been vocal about his plans to “get Britain building again”, emphasising the need to prioritise first-time buyers. Starmer’s vision is now set to become reality. Simon Brown, CEO of Landmark Information Group, said:
“We welcome the new Labour Government and look forward to collaborating to enhance the housing market. As the largest property and land data business in the UK, Landmark has a strong history of working with the departments across Government to provide insights on market challenges and solutions.
Labour’s ambitious plans to build 1.5 million homes and streamline planning processes are commendable. The current planning system is complex and fragmented, which hinders market efficiency. By leveraging the relevant data, we can identify areas of high demand and address bottlenecks, ultimately improving market clarity under Labour’s leadership.”
Nathan Emerson, CEO of Propertymark said that the UK has “suffered a chronic undersupply of sustainable new homes for many decades” and any new policies to increase housing supply “must come with full disclosure” on how and when developments will be delivered. He added:
“For many years, the under supply of housing has pushed prices up for both homeowners and renters, and it is vital there is a plan to ensure supply keeps pace with real world demand.
“Across the next ten years it is expected the UK population will grow to around 70 million people and it’s essential there is a diverse mix of housing solutions available. Key aspects must include careful consideration to ensure all new housing is logically implemented in targeted regions and wherever possible, protect greenbelt areas.”
Brian Berry, Chief Executive of the FMB, commented:
“The election of the new Labour Government offers a fresh start to get Britain building. Labour’s pledge to build 1.5 million new houses over the next five years, and upgrade five million existing homes, are ambitious targets but very much needed if the growing housing crisis is to be addressed. The success of Labour’s housing targets will very much depend on two key issues being addressed. First, the need to reform the planning system to make it easier and quicker to build. Secondly, the urgent need to tackle the skills crisis ensuring we have enough skilled workers in the construction industry to build the homes needed.”
Anthony Coding, RBC Capital Markets, echoed this and said that The Labour Party has” big plans for housebuilding”. He continued:
“If election pledges turn into policy, today is more than just a new day in housebuilding, it is the dawning of a new age. In the next 100 days we are likely to see the reinstatement of housing targets, the refining of greenbelt and the reform of planning, and by the end of the year the newest version of Labour may have announced a new generation of new towns. Over the last few years housebuilders’ potential has been hamstrung, but over the next few this potential is likely to be unleashed. If the new Government’s walk matches its talk we expect the sector to re-rate, and in the very short term we suspect that the talk alone will be enough to lift share prices. In our view, whilst all housebuilders benefit from the anticipated changes the biggest winners will be Taylor Wimpey, Persimmon and Vistry.”
Jonathan Rolande, from the National Association of Property Buyers commented:
“The appalling state of housing cannot be swept under the carpet any longer. The average first time buyer is in their mid-thirties and if things continue as they have been, children today won’t be buying until they are in their 50’s, if ever.
To re-balance the market I believe we shall soon see things that give us, in the business of buying, selling or letting homes plenty to complain about. A turbo-charged Renters Reform Bill is likely to be the first thing we’ll see.
Bold initiatives will shock the housing market and we may see adverse effects. But we should also see the positives. Good landlords will be rewarded, bad will be ones driven out. The same with good employers. As more homes become available and the pressure on prices and rents eases, younger colleagues will have a proper chance to buy or rent a decent home, put down roots and have something worth working for. Employing good people should become easier. The medicine is likely to be bitter, but its results will, I hope, be worth that temporary discomfort.”
Mark Chick, director of ALEP (the Association of Leasehold Enfranchisement Practitioners) said:
“So now that we know the size of the Labour majority it seems a fairly safe bet that the next five years will see a more vigorous programme of reform in the residential leasehold sector.
During the next five years we are likely to see the acceleration of commonhold and possibly legislation to end or put a sunset date on leasehold for new properties. It will be interesting to see what Labour chooses to do with the Commonhold project and I expect we will now find out what other drafting has been done by DLUHC in relation to the law commission’s original reports and recommendations.
In addition we can presumably expect the current reforms in the Leasehold and Freehold Reform Act 2024 to be brought into effect and the question now turns to the timing of these and secondary legislation.”
Tim Bannister, Rightmove’s property expert said that the certainty of having the next government in place will be “good for the market”. He continued:
“We can see in our data that in previous election years, there has been a slight bounce in home-mover activity after an election has taken place – so the same could happen this year in the short term, particularly against a background of a potential Bank Rate cut on the horizon, and lowering mortgage rates.
It is crucial that the government considers the impact of any new policies on the wider market, as a policy designed with one group in mind often has knock-on implications for another group of home-movers. Earlier this week Rightmove quizzed Keir Starmer about what he would do to help housing, and it’s encouraging to see that Labour’s manifesto focused on building more homes and planning reform. Creating more homes for sale and for rent quickly, whilst maintaining quality is a pressing issue, to ensure there are more homes to meet the demand.
We think there is an opportunity to go further in giving support to first-time buyers. Whilst a permanent mortgage guarantee scheme provides the certainty that this option will be available, from our research we can see that only a small number of first-time buyers are likely to benefit from it. Making the existing stamp duty thresholds permanent for first-time buyers would be a start, and then there is an opportunity to look at innovative solutions to help first-time buyers with both their deposit, and being able to borrow enough from a lender in the longer term.”
One Response
No doubt the corruption that has spread through the construction industry (and perhaps also legal) in the name of profit. Long will it continue.