The election of the Labour Party into parliament promises to bring significant changes to housing in the UK. With an ambitious plan to address housing shortages, affordability, and rental market regulation, Labour’s policies could reshape the landscape over the next five years.
Housing Market
New Homes and Strategic Planning
A key component of Labour’s housing strategy is their commitment to building 1.5 million new homes over the next five years to alleviate the chronic housing shortage and make homeownership more accessible. By increasing housing, the plan is expected to stabilize house prices and make them more affordable for first-time buyers. Labour also plans to update the National Policy Planning Framework to reinstate mandatory housing targets. Local authorities should actively work towards meeting housing needs, promoting more consistent and widespread development. To support these targets, the new government will encourage all combined and mayoral authorities to strategically plan for housing growth, and will grant new planning powers and increased flexibility in utilising grant funding.
Funding and Development
By increasing stamp duty surcharge for non-UK residents, Labour intends to fund additional planning officers for local councils. This aims to expedite the planning process and increase the efficiency of housing development approvals. Their ‘brownfield first’ approach will prioritise the development of previously used land, protecting green belt areas while revitalising urban spaces. Fast-tracking approval of urban brownfield sites will lead to quicker development and rejuvenation of neglected urban areas. Lastly, Labour plans to prioritise the release of lower quality ‘grey belt’ land over green belt, balancing the need for new housing with environmental concerns.
Social and Affordable Housing Initiatives
Labour is determined to deliver the largest increase in social and affordable housebuilding in a generation. A key aspect of this policy is strengthening planning obligations to ensure new developments are built and provide more affordable homes. Secondly, the policy will involve modifying the Affordable Homes Programme to maximise the number of home delivered with existing funding. The new government also plans to support councils and housing associations to enhance their contribution to affordable housing supply, prioritising the construction of new social rented homes and protecting existing stock by reviewing right to buy discounts and increasing protections on newly-built social housing.
First Time Buyers and Mortgage Support
Labour’s policies aim to give first-time buyers the first chance to purchase new homes. These policies incorporate measures to prevent international investors from purchasing entire developments before construction begins. Additionally, the introduction of a permanent, comprehensive mortgage guarantee scheme will support first-time buyers struggling to save for large deposits.
Rental Sector
Awaab’s Law
The planned extension of Awaab’s Law into the rental sector will see strict timelines set for landlords to investigate and address hazards. Emergency repairs must be completed within 24 hours, while other significant hazards must be investigated within fourteen calendar days, and repairs begun within the following seven. This law aims to ensure tenant safety and improve living conditions.
Abolishing Section 21 and Empowering Renters
The immediate abolition of Section 21 of the Housing Act, which allows for no-fault evictions, looks to provide renters with greater security, and reduce the anxiety of eviction without cause to promote more stable living arrangements. Labour also intends to empower renters to challenge unreasonable rent increases, although specific mechanisms for this have not been detailed. Further to this, they plan to address unregulated and unaffordable ground rent charges and maintenance costs.
Leasehold Reforms
The new government aims to ban new leasehold flats and ensure commonhold becomes the default tenure.
Energy Efficiency and Sustainability
Labour’s Warm Homes Plan aims to meet energy efficiency standards by 2030, with an investment of £6.6 million to upgrade five million homes. This initiative should reduce energy bills for families and contribute to environmental sustainability. The manifesto does not state the desired energy efficiency rating for homes.
Labour’s comprehensive housing and rental market policies promise significant changes. By increasing housing supply, empowering renters, and enhancing the regulatory framework, these reforms aim to create a more equitable and sustainable housing market for all.
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