8 things you should know about Labour’s property plans
The political baton has been passed to Labour and details are emerging regarding what lies ahead for those working in the property sector, as well as for home movers and investors.
Since the election result, we’ve had the State Opening of Parliament and, following the usual pomp and ceremony, The King’s Speech outlined some 39 Bills Labour seek to make law – with two of particular importance.
Viewber reveals the 8 things you should know about Labour’s property plans, and we also explore how our services may have a bigger role to play in keeping everyone in the industry compliant.
- There are 4 new political names you need to know
How our property market moves forward is affected by many factors – like construction, taxes, planning and law – therefore it’s a cross-department effort to steer the property ship. Now in control are Prime Minister, Sir Keir Starmer; Housing Secretary and Deputy Prime Minister, Angela Rayner; Chancellor Rachel Reeves; and Matthew Pennycook, the Minister of State for Housing and Communities.
- Expect more new homes
Labour have pledged to achieve what the Conservatives struggled with – to inject pace and [more importantly?] productivity into the construction sector. The new Chancellor wants 1.5 million new homes built in the first Labour Parliament, with the biggest facilitator a drastic reform of the planning process. This will include the regrading of some green belt land to ‘greybelt’, supposedly freeing it up for house building, as well as mandatory, localised house building targets and the recruitment of more planning officers.
If achieved, an increase in house building may result in pressure on new homes services, such as inspections, snagging, viewings, energy assessments, floorplan creation, photography, completions and key handovers. Viewber is ready to help with its scalable site visit services, covering all of the above, available to developers, house builders and agents responsible for new homes marketing.
- Stamp duty will change for first-time buyers
Although a quieter announcement, a Labour party spokesperson confirmed the current rate of stamp duty for first-time buyers will end next year. From 1st April 2025, the threshold for when first-time buyers start paying stamp duty will drop from £425,000 to £300,000, leaving more buying novices with a higher tax bill.
- Support for buyers with low deposits continues
The previous Government’s mortgage guarantee scheme – designed to give purchasers with low-value deposits access to 95% ‘loan to value’ mortgages – was intended to be a temporary measure but the new Labour Government has a different plan. It will make the scheme a permanent initiative – ‘Freedom to Buy’.
- More leasehold reforms may lie ahead
The outgoing Conservative parliament managed to turn the Leasehold & Freehold Reform Bill into an Act but it’s now up to Labour to enforce its contents. It’s not a cut and dried case, however, as the King’s Speech contained a new draft Leasehold and Commonhold Reform Bill. This strongly suggests further reforms are ahead. In the past, Labour has not been shy about its desire to ban all new leaseholds – even on flats – with commonhold the default tenure.
- Renters’ Reform Bill has become the Renters’ Rights Bill
One Bill that was lost in the ‘wash up’ period before the last Parliament was dissolved was the Renters’ Reform Bill. As with the Leasehold and Commonhold Reform Act, Labour is looking to refine the contents in search of greater reforms. It was announced during the King’s Speech that a new replacement Bill – called the Renters’ Rights Bill – would be heard in Parliament, with the intention for it to become law as soon as possible.
- Renters’ Rights Bill will ban Section 21 evictions
Although there was a lack of detail in the King’s Speech, we do know the new Renters’ Rights Bill seeks to ban Section 21 evictions – often spuriously referred to as ‘no fault’ evictions. Other than this, King Charles III said the Government would give ‘greater rights and protections to people renting their homes’.
- The Bill may contain more reforms than the Conservative version
Labour’s election manifesto and previous pledges alluded to wider-reaching rental reforms than promised by the Conservatives. A detailed Labour-formulated Bill is expected this October and based on evidence, it may contain:
- the extension of Awaab’s Law to the private rental sector
- the extension of social housing’s Decent Homes Standard to the private rental sector
Viewber is well placed to support the Government’s drive to improve living standards and it’s something we are passionate about. We are already assisting social housing providers in implementing the Decent Homes Standard, as well as helping them stay compliant with Awaab’s Law. As such, we can make the seamless transition to carry out the same property checks in the private rental sector.
Additional rental reforms could include:
- new rights allowing tenants to challenge unreasonable rent increases
- the end of agents and landlords encouraging tenants to bid against each other
- the creation of a digital database containing information for landlords, tenants and councils
- more support for tenants who wish to keep pets and alter their rental property
- a new ombudsman to preside over tenant/landlord disputes
- the end of discrimination against tenants who receive benefits or have children
- a new mandatory EPC requirement in private rentals, rising from E to C
- a cap on the value of upfront rent paid by tenants to secure a rental
- an extension of the notice period landlords must give tenants, rising from 2 to 4 months
- measures that make it more difficult for landlords to switch from long-term rentals to short-term and holiday lets
If you would like to strengthen your housing operation by tapping into a network of ‘on the ground’ professionals who are able to visit any property in the UK, please contact Viewber. Our services include:
We look forward to hearing from you.
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