Labour: A New Beginning for the Housing Market

Following Labour’s win in the July 2024 election, whether you are a prospective buyer, renter or landlord, everyone is eager to understand the implications for the housing market.

Under the leadership of a Labour government, an ambitious housing agenda promises strong changes designed to address affordability, increase supply, and protect renters.

Boosting Housing Supply

Labour’s most significant pledge is to build at least 1.5 million new homes over the next five years. This initiative represents the largest boost to affordable housing in a generation. The plan includes creating new towns with high-quality homes, green spaces and reliable transport links, ensuring these communities are both liveable and sustainable.

A key aspect of Labour’s strategy is the introduction of a ‘planning passport’ which will fast-track the approval and construction of high-density housing in urban areas, optimising the use of already developed land. Accelerated construction could lead to a variety of homes becoming available for prospective buyers and landlords looking to develop their portfolio.

Affordable Housing and First Time Buyers

Labour is dedicated to making homeownership more accessible, particularly for first-time buyers. Their plan includes offering first-time buyers first selection on homes in new developments through a government-backed mortgage guarantee scheme.

This initiative is designed to support younger people in getting onto the housing ladder, addressing the affordability crisis for many aspiring homeowners.

Renter Protection and Leasehold Reforms

Renters will see significant protection under Labour’s new policies. The party has pledged to ban no-fault evictions, providing greater security and stability for tenants. Additionally, Labour plans to reform or end the leasehold system, addressing a longstanding issue affecting many homeowners.

These changes aim to create a fairer and more secure rental market, enhancing tenant rights, and making the process of homeownership more straightforward.

Opportunities to take

As these policies unfold, the housing market is ready for a period of dynamic change and opportunity. We are yet to see the effect of these initiatives, but it’s a step in the right direction and can help homeowners, new and old, throughout the market.

To discuss the options available to you, get in contact today.

If you’d like to discuss the options available to you, contact your adviser today.