Property Market News

King’s Speech: What Policies Will the New Government Reveal?

Today, the new Labour Government will unveil its legislative agenda through the King’s Speech, revealing significant policy priorities for the housing sector. Key among these is the expected introduction of legislation aimed at fulfilling Labour's manifesto pledge of building 1.5 million homes over the next five years. This ambitious plan may involve major overhauls in planning and the reintroduction of mandatory housing targets.

Notably, the Housing Bill is anticipated to propose the reclassification of certain lower-quality green belt areas for development. Fergus Charlton, a partner at Michelmores' planning practice, highlighted the contentious nature of this proposal, noting the strong opposition from green belt advocates. He stated, “To be effective, rebranding must be so persuasive that the public forgets the previous incarnation. If new developments in the green belt are still required to show 'very special circumstances' to proceed, then little will be gained.”

However, Charlton welcomed the reintroduction of mandatory housing targets for local councils, emphasizing its potential to incentivize local authorities to approve more building projects. “Setting clear targets could help overcome local opposition and NIMBYism that often blocks development. Reforming the payment of hope value under compulsory purchase rules will make it cheaper for local authorities to acquire land for regeneration and affordable housing by compensating landowners based on current market value rather than potential future value with planning permission,” he added.

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Welsh First Minister Resigns: Propertymark Calls for End to Housing Instability

In other news, Propertymark has called for an end to instability in Wales’ housing policy following the resignation of Welsh Labour leader and First Minister Vaughan Gething after just four months in office. Gething’s resignation, prompted by controversy over campaign donations and subsequent cabinet resignations, has further delayed the Welsh Government’s proposed white paper on fair rents and adequate housing.

Tim Thomas, Policy and Campaigns Officer at Propertymark, stressed the need for stable leadership to address key challenges in the housing sector. “Welsh Labour must appoint a new leader quickly to guarantee consistency and give confidence to property professionals, renters, landlords, and home buyers and sellers,” Thomas said. He urged the new First Minister to seize the opportunity to halt any rent control measures, review costs and taxes impacting private landlords, continue improving building safety, and extend Help to Buy to the second-hand housing market.

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What Should Investors Offer Tenants in the Mainstream Rental Sector?

According to Barclays Property Insights, renters have specific non-negotiable attributes they look for in a property. Topping the list, 46% of tenants cited the absence of damp and mould as a deal-breaker. Additionally, a third of renters consider access to a living room and outdoor space essential, with many also prioritizing double-glazing to enhance energy efficiency.

For landlords aiming to attract a broader range of tenants, meeting these demands could prove beneficial. The top ten deal-breakers for renters include:

1. No damp/mould present (46%)

2. Living room/lounge (34%)

3. Private garden/outdoor space (32%)

4. Double glazing on windows (32%)

5. Fast internet/broadband capabilities (24%)

6. Pets allowed (23%)

7. Off-street parking (21%)

8. Large bedrooms (17%)

9. Likeability of landlord or property agents (17%)

10. Privacy from neighbours (16%)

From a landlord’s perspective, essential qualities in tenants include cleanliness and proof of income (both 27%), with a notable preference for tenants who take good care of the property. Landlords also value quiet tenants and those employed in permanent jobs.

Barclays’ spokesperson highlighted that personal communication from prospective tenants could significantly increase their chances of securing a rental property. Despite this, only a quarter of renters are willing to try this approach, presenting a strategic opportunity for applicants to stand out.

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Stay tuned for more updates and insights in the property market.

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