Summary of Labour Party Manifesto 2024: Housing, Planning and Private Rented Sector

Having skimmed through the manifesto, I highlight those manifesto promises that Labour intend to implement. I have tried to be broadly agnostic in terms of my comments, and summarise with a high-level strengths/weaknesses analysis.

This is not a comprehensive analysis but is intended to bring to light housing and planning policies that will impact both the PRS and BTR.

1. Housing Policies:

Homebuilding and Planning:

·?????? Labour plans to build 1.5 million new homes over the next parliament.

·?????? Mandatory housing targets will be restored.

·?????? Support for local authorities by increasing the rate of the stamp duty surcharge paid by non-UK residents.

·?????? Brownfield first approach, prioritising previously used land for development.

·?????? Preservation of the green belt, but with strategic releases of lower quality ‘grey belt’ land.

·?????? Establishment of new towns inspired by the 1945 Labour government.

?2. Affordable Housing:

·????? Labour commits to the biggest increase in social and affordable housebuilding in a generation.

·????? Strengthening planning obligations to ensure new developments provide more affordable homes.

·????? Support councils and housing associations in building capacity to deliver more affordable housing.

·????? Prioritise building new social rented homes and protecting existing stock.

?3. Private Rented Sector:

Regulations and Protections:

·?????? Immediate abolition of Section 21 ‘no-fault’ evictions.

·?????? Empowering renters to challenge unreasonable rent increases.

·?????? Raising standards in the private rented sector, including extending 'Awaab’s Law' to private rentals.

·?????? Actions to improve building safety and protect leaseholders from costs related to building remediation.

?Tenant Rights:

·????? Legislation to prevent exploitation and discrimination against private renters.

·????? Decisive steps to raise standards in private rented housing.

4. Leasehold Reforms:

• Abolishment of Leasehold System:

·?????? Labour intends to end the feudal leasehold system.

·?????? Enactment of Law Commission proposals on leasehold enfranchisement, right to manage, and commonhold.

·?????? Ban on new leasehold flats and promotion of commonhold as the default tenure.

·?????? Tackle unregulated and unaffordable ground rent charges.

·?????? Address ‘fleecehold’ practices and unfair maintenance costs.

?5. Devolution and Local Authorities:

Extended Powers:

·????? Devolution settlements for existing Combined Authorities and new powers for more areas.

·????? Local authorities to gain new powers over housing and planning.

·????? Requirement for Local Growth Plans to identify growth sectors and necessary infrastructure.

·????? Greater flexibility and integrated settlements for Mayoral Combined Authorities.

?Hypothesized Impact on Rent Controls:

·????? With extended powers, local authorities may implement stricter rent control measures tailored to local needs.

·????? Possible variations in rent control policies across different regions, reflecting local housing market conditions and political priorities.

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Strengths:

1.???? Comprehensive Housing Strategy:

Labour’s commitment to building 1.5 million homes and prioritising affordable housing addresses critical housing shortages.

The focus on brownfield development and strategic use of green belt land is a balanced approach to increasing housing supply while preserving natural areas.

2.???? Tenant Protections:

Abolishing Section 21 evictions and empowering tenants to challenge rent increases are strong measures to protect renters’ rights and provide housing security. Extending safety regulations and improving building standards are crucial steps in preventing future tragedies and ensuring safer living conditions.

3.???? Leasehold Reforms:

The commitment to end the leasehold system and promote commonhold addresses long-standing issues faced by leaseholders.

Tackling unfair ground rent charges and ‘fleecehold’ practices will provide significant relief to affected homeowners.

4.???? Devolution and Local Control:

Empowering local authorities with more control over housing and planning can lead to more tailored and effective solutions for different regions. Local Growth Plans and increased funding flexibility could stimulate local economies and improve infrastructure.

Weaknesses:

1.???? Implementation Challenges:

Achieving the ambitious target of 1.5 million new homes requires significant resources and efficient planning, which may face bureaucratic delays and local opposition. Coordination between various local authorities and the central government may present logistical and administrative challenges.

2.???? Impact on Private Landlords:

While protecting tenants, the abolition of Section 21 and tighter rent control measures may discourage private landlords, potentially leading to reduced rental stock and higher rents in the long run. Balancing tenant protections with incentives for landlords to maintain and invest in properties is crucial to ensure a sustainable rental market.

3.???? Economic and Fiscal Constraints:

The financial viability of large-scale affordable housing projects and extensive support for local authorities hinges on economic stability and effective management of public funds. Potential resistance from property developers and investors concerning increased regulations and planning obligations could slow down development projects.

?4.???? Risk of Inconsistent Policies:

Devolved authorities having different policies on rent controls and housing regulations could create a fragmented housing market, leading to disparities in housing availability and affordability across regions.

In conclusion, while Labour’s manifesto presents a robust framework for addressing housing issues and protecting renters, careful attention must be paid to implementation strategies, economic implications, and maintaining a balance between tenant protections and landlord incentives to ensure a thriving housing sector. The proposed leasehold reforms are a positive step towards addressing long-standing issues faced by leaseholders, but the overall success of these initiatives will depend on effective execution and stakeholder cooperation.

Key to delivery will be how well Labour understand the role of institutional investment into housing, and that a tenure-balanced approach to housing delivery (encouraging house builders to adopt a tri-tenure business model) will be pivotal in re-balancing the UK's teetering housing market.

RB June 2024

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