New Policy For Housing

New Policy For Housing – A Key Election Issue

The July general election brought housing to the forefront of the political debate. Voters were rightly concerned about the housing crisis, asking questions around the availability of homes and the ability of first-time buyers (FTBs) to get onto the property ladder. All major parties put forward significant housing proposals. It was Labour's victory in the end and Sir Keir Starmer’s party now has the mandate to address these concerns over the next five years as housing policy has emerged as one of the core issues Labour aims to tackle.

The Autumn Budget Shows What’s to Come

Chancellor Rachel Reeves presented the Autumn Budget, marking Labour’s first in 14 years. The measures are primarily aimed at addressing what labour have identified as a £22 billion financial shortfall, with changes including an increase in stamp duty on second homes and buy-to-let properties, which rise to 5% from 3%. The stamp duty relief threshold for first-time buyers will revert to its previous level of £300,000 (down from the current £425,000) in March 2025, meaning some buyers—especially in high-priced regions like London—will pay more tax.. However, capital gains tax on residential property remains unchanged.

The government has also pledged £5 billion towards building 1.5 million homes, and an additional £500 million to the Affordable Homes Programme, supporting 5,000 new homes. Right to Buy discounts will reduce, allowing councils to reinvest sale proceeds. The budget also promises future measures, such as making the mortgage guarantee scheme permanent, aiming to bolster homeownership accessibility and housing safety.

Big Plans in the Works for Housing

Labour’s plans for the housing sector will be driven by Matthew Pennycook, the new Minister of State for Housing and Planning. He will be the man charged with delivering on the promises Labour made in their manifesto. It will be no mean feat as the government has pledged to address various challenges in the housing market. The list of goals is far reaching, from reforming the rental sector to providing support for first-time buyers and encouraging new housing developments. Each of these initiatives aims to tackle long-standing issues and help more people find secure, affordable homes. Let’s dive into each of them.

Within this article we have provided links to various external sources of guidance. Please note, we are not responsible for the content or availability of any external linked sites.

Reforms to Revitalise Renters Rights

One of Labour's key promises is to reform the rental sector, providing greater protection for tenants. The central focus of this reform is the proposed Renters’ Rights Bill, which seeks to abolish Section 21 "no-fault" evictions. Currently, Section 21 allows landlords in England and Wales to serve notice on tenants without having to provide a reason, giving them a minimum of two months to vacate the property. Under the proposed new law, tenants will enjoy more security, knowing they can’t be evicted without cause.

Additionally, Labour aims to introduce the Decent Homes Standard, which will establish a minimum standard of quality for rented homes. They also plan to make it easier for tenants to keep pets, subject to landlord approval, creating a more tenant-friendly environment across the country.

A Helping Hand for FTBs

To make home ownership more accessible, especially for renters looking to transition into buying, Labour has announced a range of initiatives to help first-time buyers (FTBs). One of the flagship policies is the "Freedom to Buy" scheme, which aims to work alongside the existing mortgage guarantee scheme. The goal is to increase the availability of low-deposit mortgages, making it easier for young people and those with limited savings to purchase their first home.

The mortgage guarantee scheme was originally set to run until June 2025, but Labour plans to make it a permanent fixture of the housing market. Combined with planning reforms, including giving local people priority on new housing developments and changes to compulsory purchase laws, Labour hopes these efforts will help an estimated 80,000 young people get on the housing ladder within the next five years.

Out With the Old, in With the New (Homes)

Labour’s ambitious plans to build 1.5 million homes over the next five years are aimed at addressing the supply-side shortage in the housing market. Central to this target are reforms to the planning system, including releasing certain parts of the green belt for development and reintroducing mandatory housing targets for local authorities.

These measures are intended to boost housebuilding, particularly in areas most in need of new homes. Labour believes that, in their own words, these measures will “boost housebuilding in areas most in need, to help more people buy their own homes, and help drive growth - making everyone in the country better off".

Making Sustainable Attainable

Sustainability is a key part of Labour's housing agenda. From 2025, all new homes will be required to be "net zero ready," meaning they will be designed and built to produce 75-80% less carbon than current homes. This step is part of the government’s wider commitment to making all housing in the UK more energy-efficient, in line with the country’s net zero targets.

For existing homes, the government is launching a new Warm Homes Plan. This initiative will see the government collaborate with local authorities, banks, and building societies to offer grants and low-interest loans aimed at improving the energy efficiency of existing homes. This retrofitting programme is part of a £6.6 billion plan to upgrade 5 million homes, helping homeowners reduce their energy consumption and lower their bills.

Plans are Always Subject to Change

As with all government policies, the plans outlined in Labour’s manifesto are subject to change as they navigate the realities of governing. While these initiatives are correct at the time of writing, political, economic, and social factors could alter the final legislative product.

For the most up-to-date information on housing policy, be sure to consult the official UK government website, which regularly publishes updates on ongoing reforms.

Within this article we have provided links to various external sources of guidance. Please note, we are not responsible for the content or availability of any external linked sites.