What will the labour government do for the UK housing market?

As the Labour government steps into power, many are eager to see how their ambitious policies will reshape the UK's housing market.

Promising changes aimed at affordability, sustainability, and increased housing availability, Labour's plans have the potential to significantly impact both homeowners and renters.

From constructing 1.5 million new homes to extending help for first-time buyers and renters, and pushing for greener, more energy-efficient living spaces, these policies reflect a comprehensive approach to addressing the housing crisis.

In this blog, we delve into the key initiatives Labour has laid out and explore what these could mean for the future of the UK housing market.

?

1.?New Homes

Labour aims to construct 1.5 million homes over the next 5 years and intends to update the National Policy Planning Framework.

2.?Help for First-Time Buyers

Labour is aiming to help around 80,000 more first time buyers, through a mortgage guarantee scheme, permanently. They also plan to offer priority to locals looking to purchase their first home in new developments

3.?Stamp Duty

First Time Buyers don’t currently pay stamp duty when purchasing a home up to ￡425K, however this exemption is set to expire. Labour have announced its plans to keep this in place until March 2025, but have not committed to extending it beyond that date.

4. Help for Renters

Labour have outlined plans to ban no-fault evictions. They’re also looking to extend the law which states landlords must address reported health hazards with the timeframes from social housing to the private rental sector. Additionally, they have pledged to empower tenants to challenge unreasonable rent increases.

5.?Greener Homes

Labour plans to require all private rental properties to achieve an EPC rating of C by 2030, without mandating the removal of old gas boilers. They also propose a national Warm Homes Plan to be implemented over a decade, potentially impacting up to 5 million homes, with the goal of eliminating fuel poverty by 2030.

A Labour government will bring significant changes to the housing market, their focus being on affordability, sustainability and building more homes. These policies aim to make a fairer and more accessible housing market, however they also come with challenges and potential market adjustments. While it's still early days and only time will tell if all these goals will be achieved.

?

Disclaimer

UK Mortgage Centre is a trading style of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. FRN – 826982. Registered in England & Wales: 11614569. As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.