With the Labour Party now at the helm after 14 years of Conservative rule, the UK is poised for a significant transformation in the housing sector. Labour's housing plan aims to tackle longstanding issues of affordability, security, and quality. Here's a look at some of Labour's key housing policies.
Who will be in charge of housing?
Matthew Pennycook has been appointed as the new Housing Minister, a decision that was widely anticipated. Re-elected as the MP for Greenwich and Woolwich with a majority exceeding 18,000 votes, Pennycook has been deeply involved in housing policy, having served as the Shadow Housing Minister since 2021. He will work under Angela Rayner, who was confirmed as the Secretary of State for Housing, Levelling Up and Communities on Friday 5th July.
Pennycook's extensive engagement in housing policy sets him apart. He has been particularly active in the detailed examination and amendment of the Renters (Reform) Bill, submitting numerous amendments. Unfortunately, the bill did not pass through the 'wash-up' process after Rishi Sunak called for the General Election. Nevertheless, Pennycook's expertise and dedication to housing reform position him as a key figure in the new government's housing strategy.
But what does Labour plan to do now that it is in power? Here are Labour's key housing policies.
Rental sector reforms
Abolition of Section 21 evictions: Labour is set to abolish Section 21 'no fault' eviction powers immediately. This move is designed to provide greater security for renters, preventing arbitrary evictions and ensuring tenants can enjoy a stable living environment.
Clampdown on unscrupulous landlords: The party plans to end bidding wars, cap upfront payments, and mandate that rental properties have an EPC rating of C or above by 2030. These measures aim to protect tenants from exploitation and improve the quality of rental housing.
Improving energy efficiency: Labour's policies will ensure that private renters are £250 better off each year through enhanced energy efficiency standards for rental homes.
Tenant protections: Additional protections will be put in place to end the auctioning of rented homes to the highest bidder and cap upfront rent requests. These measures are intended to prevent exploitation, discrimination, and unreasonable rent increases, ensuring fair treatment for all tenants.
Raising standards: The extension of Awaab’s Law will further elevate standards in the private rented sector, safeguarding tenants from substandard living conditions.
Support for first-time buyers
First-time buyer priority: Labour will prioritise first-time buyers, giving them the first chance to purchase homes, thereby helping more people to get onto the property ladder.
Mortgage guarantee scheme: A permanent Mortgage Guarantee Scheme will support those struggling with large deposits and help lower mortgage costs, making homeownership more accessible.
Building 1.5 million new homes
National policy planning framework: Immediate updates to this framework will reverse damaging changes and restore mandatory housing targets, ensuring a robust supply of new homes.
Support for local authorities: Labour will provide additional funding and support for local planning authorities to maintain up-to-date Local Plans with strict enforcement.
Planning officers: Additional funding for planning officers, supported by increased stamp duty surcharge on non-UK residents.
Community involvement: Local communities will have a say in shaping housebuilding projects, with intervention powers used if necessary to ensure development meets local needs.
Brownfield development and greenbelt protection
Brownfield-first approach: Labour will prioritise development on previously used land, fast-tracking urban brownfield sites to minimise environmental impact.
Greenbelt strategy: A strategic release of lower quality ‘grey belt’ land will be undertaken with rules ensuring benefits for communities and nature.
New towns and urban extensions: Labour plans to build large-scale new communities in partnership with local leaders, addressing housing shortages in a sustainable manner.
Strategic planning for housing growth
Cross-boundary planning: New mechanisms will be introduced for strategic planning on a larger-than-local scale, ensuring coordinated development efforts.
Empowering authorities: Combined and Mayoral Authorities will be required and empowered to plan for housing growth, facilitating better regional development.
Compulsory purchase reforms: Labour will improve land assembly and site delivery with fair compensation rules, making it easier to develop new housing projects.
Social and affordable housing
Social housebuilding increase: Labour commits to the biggest increase in social and affordable housebuilding in a generation, addressing the acute shortage of such housing.
Strengthening planning obligations: These obligations will be strengthened to ensure more affordable homes are included in new developments.
Affordable homes programme: Changes to this programme will deliver more homes from existing funding, maximising the impact of available resources.
Protection of social housing: Labour will review right to buy discounts and increase protections on new social housing to maintain the stock of affordable homes.
High-quality, sustainable development
Exemplary development: Labour will ensure that high-quality, well-designed, and sustainable homes become the norm, setting a standard for future developments.
Climate resilience and nature recovery: New developments will increase climate resilience and promote nature recovery, contributing to broader environmental goals.
Nutrient neutrality: Labour will implement solutions to unlock homebuilding without compromising environmental protections, balancing growth with sustainability.
Thoughts from Winkworth
Dominic Agace, Chief Executive of Winkworth comments, “With a new Labour government with a strong majority, it looks like we will have political certainty, putting the instability of the past ten years behind us and raising the profile of the UK amongst our international peers once more. A lack of stability has deeply affected the property sector. Now, coupled with the increasingly positive news on the UK prospects and with interest rate cuts pending, this should encourage a new upbeat mood in the property market. Therefore, I think it’s really important that the new Government stays true to the centrist stance on which it was elected.”
"I look forward to a steady, consistent and business-friendly approach to the economy without unfunded spending, so we can finally address the biggest issue of the day. High interest rates are hurting home buyers, preventing first time buyers getting on the ladder and preventing investment in new homes."
“I believe it’s essential that the new Government, in its desire to show progress, that it does consider its new policies carefully, rather than rush them through – to avoid unintended consequences."
“I welcome their investment into planning departments and quicker release of development sites to help meet housing demands."
“I don’t want them to rush into intervening in the private rental market without considering that supply of properties to rent, particularly in the cities is the fundamental issue. We are currently short of 120,000 rental properties to meet current demand. Banning Section 21 without adequate resources in the court system to allow landlords to exit anti social tenants will lead to a sell off. This also applies to rent controls where mechanisms need to be well thought through. Without growth in rents aligning with inflation over the long term, institutional investment will not be made in the sector. This is much needed to create enough new homes for a growing number of tenants of all ages.”
.jpg?width=1920)
