How will the general election affect housing?

As the UK prepares for a general election on July 4th, housing has become a hot topic. The policies suggested by each political party could greatly impact homeownership, property investment, and mortgage lending.

What is Labour’s housing policy?

Labour party leader Keir Starmer and deputy leader Angela Rayner have said that Labour is “the party of homeownership’ and that “Our changed Labour Party will be on the side of the builders not the blockers, to get Britain building again.”

Labour are planning to shake up the housing industry and have proposed a series of ‘golden rules’ to guarantee that houses are built  in a way that protects green spaces without placing too much pressure on infrastructure and public services. Here’s what we know:

1. Brownfield first - This rule would prioritise the development of brownfield land (abandoned or underused land that was previously used industrially) instead of directly using land in the green belt (designated land used to retain undeveloped/agricultural land surrounding urban areas).

Mobeen Akram, Director of New Homes at Mortgage Advice Bureau, has this to say about brownfield sites:

“Focusing on brownfield development is a win-win for both the housing crisis and the environment. By using previously developed land, we can provide much-needed homes in high-demand areas. This approach tackles the housing shortage head-on, breathing new life into otherwise unused sites, and promotes sustainable development, making it a positive step for both people and the planet.”

2. ‘Grey belt’ second - With the quality of green belt land varying, this rule would focus on prioritising the use of poor quality green belt land over more ecologically-valuable green belt land.

3. Affordable homes - Labour aims to make up to 50% of homes ‘affordable’.

What is The Conservatives’ housing policy?

The Conservatives have also laid out their policies on housing, with many revealed before the election was even announced. Their 2019 manifesto stated that the party planned to build 300,000 new homes per year by the ‘mid-2020s’ -  “at least a million” over their term in office.  Fast-forward to 2024, however, and these targets have not been met.

During their televised debate on June 4th, Rishi Sunak stated that his party had built “1 million homes” since the last election in 2019, whereas Keir Starmer argued that a Labour premiership would build “1.5 million in five years.”

Boosting housing supply

In December 2023, Secretary of State, Michael Gove acknowledged the significant shortfall in London's housing delivery and reiterated the commitment to building more homes, emphasising planning reform. Hitting these targets remains an uncertainty - the latest available data shows that the Tories have only managed to build 234,000 new homes a year.

Renters’ Reform Bill

The Conservative government’s Renters (Reform) Bill aimed to abolish Section 21 'no fault' evictions, establish a new system of rolling tenancies, and set minimum standards for the private rented sector.

Ultimately, the Bill has been shelved following the calling of a general election, delaying its progress into law - but may yet come back into parliament.

Potential return of Help to Buy

Rishi Sunak has said the Conservatives are considering reinstating the Help to Buy equity loan scheme to help first time buyers get into the property market. The revised scheme might include no new-build restriction, an updated price cap, or fixed repayments to avoid escalating loans. Additionally, extending the Right to Buy scheme to housing association tenants is under consideration.

The Conservatives have also included a stamp duty freeze in their election promises, which would be a boon across the board for many. 

Ben Thompson, Deputy CEO at Mortgage Advice Bureau, notes that "a more comprehensive Stamp Duty Land Tax (SDLT) reform is necessary. By implementing these potential solutions, the government can ensure SDLT fosters a healthy housing market where homeownership remains a realistic dream for all."

Looking to get a mortgage? Check out our ‘Getting a mortgage’ page for more info!

What are the other parties’ housing policies?

Liberal Democrats

The Liberal Democrats have criticised the UK's housing market for being unfair and have pledged to support first time buyers and younger generations, rather than just existing homeowners. The party plans to address housing by significantly increasing the construction of homes annually, including social housing. They have also committed to abolishing leaseholds on residential properties and improving conditions for renters by banning Section 21 evictions and implementing longer default tenancies. The party's national housebuilding target is to construct 150,000 new homes each year by the end of the next parliamentary term.

Green Party

The Green Party's housing policy aims to reduce the number of vacant homes and eliminate the Right to Buy program, which has sold over two million council homes since the early 1980s. They argue this scheme has worsened the social housing shortage and lengthened waiting lists. To address housing issues, the Green Party proposes allowing government management of properties left vacant for more than six months and investing in councils to deliver 150,000 new, affordable council homes annually. 

Their "Right Homes, Right Place, Right Price" charter focuses on eco-friendly development on brownfield sites with necessary infrastructure improvements, and they advocate for a "Living Rent," capping rents at 35% of the local median income.

Reform UK

Reform UK looks to be preparing to win seats from the Conservatives, and even overtake them as the most popular right-wing political party in the UK. Similar to Labour, one of Reform’s primary housing policies is reviewing the planning system and looking into using brownfield sites and vacant high street properties.

They also want to prioritise social housing for ‘local people’ who have ‘paid into the system’. Their tagline for this policy reads ‘Foreign nationals must go to the back of the queue. Not the front.’

Reform wants to scrap the 2019 tax changes brought in for landlords, aiming at encouraging small landlords to enter the private rented sector. Reform have committed to not ‘penalising’ landlords. They also believes that existing legislation was ‘adequate enough’ to protect tenants from landlord bad practices, and that the Renter's Reform Bill should be axed.

The countdown to July 4th

Each political party has laid out distinct strategies to address housing challenges, reflecting their unique visions for the future. Labour's ambitious reforms aim to balance development with environmental and social considerations, while the Conservatives grapple with delivering on past promises and potential revivals of earlier schemes. The Liberal Democrats focus on fairer housing access for first-time buyers and renters, and the Green Party emphasises sustainable building and reducing empty houses - a major contributing factor to the UK’s housing crisis.

Ben Thompson also had this to say, “as we edge closer to a transformative period in the housing market, now is the time to speak with a broker and get mortgage ready.”

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Get in touch with us if you have any questions about how these elections could affect your mortgage or homebuying journey.

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Resources and references:

1. Channel 4, 2024