Sir Kier Starmer’s Labour Party won a resounding victory in Thursday’s general election, with housing a major part of the new government’s programme. But what does it mean for supply of properties, new buyers and the rental market?
What will the new resident at 10 Downing Street mean for buyers from abroad?
One of Starmer’s first appointments as Prime Minister was making Angela Rayner not just Deputy Prime Minister but also Secretary of State for Levelling Up, Housing and Communities. After the Conservative government had had seven housing ministers in as many years, it is a sign that he means business about sorting out Britain’s housing ‘crisis’.
But what is on the agenda for change and how will that affect property buyers, whether from home or abroad?
Changes to UK rental market
Firstly, one thing no longer on the legislative programme is the end of ‘no-fault evictions’. This had been going through parliament when the election was called, although Labour might be assumed to support the measure.
It means that landlords can continue to end a rolling tenancy without any reason and start the eviction process, forcing tenants out within two or six months, depending on the tenancy. However, the new housing minister said before the election: “Labour will call time on a decade of Tory vested interest and put renters first. Renters will be better off with Labour.” They also plan to require landlords to meet more stringent efficiency standards, but with a long timescale, to 2030.
Whether planning to rent in the UK or to be a landlord, watch this space for how they will fulfil this pledge.
Building 300,000 homes each year
The Labour government has pledged to build 1.5 million homes by 2029. Given the past 15 years has rarely seen more than half that level built, it would be quite a turnaround.
The government sees house building as way to grow the economy and ease people’s lives as well, with it likely to lead to less rampant house price increases.
The plan is for 300,000 new homes every year
However, to do that it must make it easier to override local opposition to building schemes and even build on the ‘green belt’. This is the area around towns kept free of urban sprawl. However, much of it is regarded as lower grade agricultural land and not worth protecting.
Their plan also includes creating a “next generation of ‘new towns’; new communities with beautiful homes, green spaces, reliable transport links and bustling high streets.” The cynical might point out that we have heard all this before, including the last time Labour was in power. However, given the vital importance of growing the economy, could it be different this time?
If it happens, will buyers from overseas be able to get their hands on them? There have been no suggestions that overseas buyers will be limited in what they can buy, as they are in Australia, New Zealand and Canada, but local first time buyers will be give “first dibs”, said the Labour Party.
Eco spending
Originally the Labour Party had a plan to spend £28bn on a green investment plan. This would have included measures such as £6bn on home insulation for 19 million homes.
However, it has now scaled this by at least half. Starmer said Labour now intended to insulate five million homes in the first five years and reach the 19 million target over 14 years.
Relaxing Brexit rules?
Although rival parties the Conservatives and Reform UK warned that it would, there have been no suggestions from Labour that they will seek to reallow freedom of movement with the European Union.
However, such a move would certainly be more likely under Labour than the Conservatives and would be something to watch out for in a second term, perhaps.
For British people moving to EU countries, popular countries such as France, Spain and Portugal still offer a relatively painless retirement.
Exchange rates
For anyone buying property in the UK from other countries, so far the latest political moves have been bad news, strengthening the pound and making UK homes more expensive from overseas.
Traditionally the currency markets would favour a right of centre government that favours business and investment. However, after the economic woes of recent years they seem to be valuing the potential for more stability. Hence there is no promise yet of sterling weakening and making homes here cheaper.
