After the Labour Party's historic landslide victory in the General Election, everyone has been wondering how the Labour win will affect the property market. While only time will tell regarding the long-term effects, the election being done is overall good news.
The UK property market doesn’t like uncertainty, and historically, it tends to pick up in the wake of an election, so come the end of summer, we could see a big bounce back in the market.
These are all the other potential impacts on the property market you need to know under the new Labour government.
What is Labour Proposing For Housing?
The Labour Party made several big promises in the lead-up to its victory. One was to build 1.5 million new homes and provide more affordable homes in the UK over the next five years. The proposal to increase the number of new builds is great news for trade professionals.
New homes and new builds = new jobs for trades. At Powered Now, we provide seamless job management software for trade companies so that you can manage your jobs, staff and projects from one platform. With new builds on the horizon thanks to Labour, it’s never been more crucial to be able to access your scheduling, quoting and invoicing software in the office or on the go.
New builds aren’t just a win for the trade sector, though. With over one million new homes proposed to be built, this boost in supply could bring overall house prices down for prospective buyers.
More Affordable Housing
The Labour government has firmly committed to tackling the housing crisis head-on by increasing the number of affordable houses on the market.
Several proposals are in place, including plans to build more social housing and ensure home ownership is more accessible. This could increase the availability of more affordable homes, providing more opportunities for low-income families, young people, and first-time buyers to enter the property market.
What About Renters?
If you’re currently renting and not planning on buying any time soon, it’s essential to know that the previous government’s rental reforms are due for an overhaul under Labour.
With plans to reform the rental market, including introducing new regulations for landlords, introducing improved minimum property standards, and extending ‘Awaab’s Law, ’ renters could have more security, and landlords can expect more rules and regulations in the wake of the election.
What Could A Labour Win Mean For First-Home Buyers?
It appears to be good news if you’re a prospective first-time buyer wondering what the election result means.
Labour has pledged a ‘Freedom to Buy’ mortgage guarantee scheme similar to the ‘Help to Buy’ scheme already in England and Wales. This scheme would allow first-time buyers to get a mortgage with only a 5% deposit.
However, unlike the current ‘Help to Buy’ scheme, Labour's plan will be permanent. Up to 80,000 young people are expected to be helped with buying their first home in the next five years. Whilst 80,000 people may seem like a small number in the scheme of things, it is a step in the right direction for the property market.
Stamp duty exemptions are set to stay the same until at least next year, with no new proposals coming out of the Labour Party during the election.
A Focus On Sustainability
The new government has clarified that sustainability is one of their key priorities, which could affect the property market. Initiatives to create more energy-efficient homes will likely be implemented, and current homeowners may be encouraged to make their homes more eco-friendly. This could enhance the overall appeal and value of ‘green’ homes in the UK.
To summarise, it’s still early days when speculating on how the property market will fare with a new Labour Government; there is hope for a renewed sense of confidence, though. And with a new government in place, there is an expectation that the overall impact will be positive.
From more affordable homes to rent reforms and an influx of new builds, staying well-informed on the changes and proposed developments is the best way for buyers, sellers, and trade professionals to navigate the property market under Labour and capitalise on any emerging opportunities.
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