With a new Labour government running the country, we take a look at some of their plans for the property market.

Housebuilding

The new Labour government has made one thing loud and clear from the start. They’ll put housebuilding back firmly on the agenda. So much so they have pledged to build 1.5 million homes across the country in their first five years. That sounds big, but it equates to circa 300,000 per year, which is line with the previous Conservative government pledges.

However, this time there will be a reform of the National Planning Policy Framework, more resources put into planning and the restoration of the mandatory local housebuilding targets. The new Chancellor Rachel Reeves confirmed that councils would be expected to prioritise building new homes (including affordable homes and social housing) on brownfield sites and across low quality areas of the green belt (or grey belt as they are referring to it).

Support for first-time buyers

As they revealed in their election manifesto, the new Labour government is committed to helping those at the lower end of the scale to afford to buy their own home.

To kick-start their initiatives, the Labour party aims to introduce a new permanent mortgage guarantee scheme. Freedom to Buy will offer greater financial support to help working people who struggle to save for a deposit, with realistic mortgage rates in place too. And as well as building more homes through their planning reforms, Labour plan on letting local people have the first opportunity to buy homes on new developments. The aim is to put an end to selling off large developments to international investors, forcing many local people out of the areas they’ve grown up in.

Changes in the rental market

At this stage, the new Labour government hasn’t gone into too much detail on their plans to tackle the rental market. However, be sure that when they do, we will be informing all our landlords and tenants accordingly. We will also announce the latest developments on our website.

However, what they have said and what we can expect in a new Renters Reform Bill is as follows. First of all, Labour has pledged to “immediately abolish Section 21 no-fault evictions” to prevent the exploitation of private renters. This is clearly something high on their list of priorities now they are in government. They will also be introducing several further tenant protections including putting an end to any “bidding wars”, allowing tenants to challenge rent increases and introducing “anti-discrimination” laws. These measures are all intended to ensure fair treatment for all tenants.

There are also discussions around improving energy efficiency of rental properties and further raising standards around living conditions.

With a new Labour government, there will be changes ahead for the property market. You might be wondering if the time is right to sell or rent your home. If you’re unsure, give us a call to discuss your circumstances on 0161 941 4445. In the meantime, for a FREE valuation of your property in the Altrincham, Hale, Bowdon, or Sale areas – contact us here.