The General Election takes place on July 4, with millions of homeowners and first-time buyers hoping that whoever comes to power will introduce positive changes for mortgages and the property market.
All the main parties have now officially launched their manifestos, so here, we look at some of the main housing policies that each of them is offering.
Labour
Labour has pledged to prioritise housebuilding, promising to build another 1.5m homes during the next parliament. Some of these will be constructed in new towns, Labour said, with others built as an extension to existing urban areas.
There are also plans to amend planning laws and boost the number of planning officers, with the aim of fast-tracking development on brownfield sites. While most green belt areas will be protected from development, lower quality ‘grey belt’ areas maybe developed on.
Turning to first-time buyers, the Labour manifesto says they will take priority over overseas buyers on new developments and will also be helped by a mortgage scheme to help those with small deposits afford a mortgage.
For those who are currently renting their homes, Labour said it would abolish section 21 no-fault evictions with immediate effect and give tenants the power to challenge their landlords if they believe rent increases are unreasonable.
You can read more here.
Conservatives
The Conservatives have also promised to deliver more homes, claiming they will build 1.6m new properties over the next four years. Like Labour, they want to fast-track planning for housing on brownfield sites, with family homes a priority, although green belt areas will be protected.
Under the manifesto, the Conservatives will make the Stamp Duty threshold for first-time buyers at £425,000 permanent, compared to the usual £250,000 for other buyers.This change was introduced in 2022 and was due to revert to £300,000 in March next year.
They will also re-introduce a “new and improved’ version of the Help to Buy scheme, to help first-time buyers with only a small deposit to put down. Under the previous scheme, first-time buyers could buy a new-build property with a 5% deposit and a 20% equity loan that is backed by the Government. A 40% equity loan was available to buyers in the capital, where property prices are highest.
The Conservatives have also promised to abolish no-fault evictions for those in rental accommodation – a policy that was already going through parliament before it was put on hold by the election announcement – and to introduce a two-year temporary capital gains tax relief for landlords who sell to their tenants.
You can read more here.
Liberal Democrats
The Liberal Democrats want to build 380,000 new homes a year across the UK if they are elected, of which 150,000 will be social homes. They also plan to build 10 new “garden cities” to help meet housing demand.
Like the Conservatives and Labour, the Liberal Democrats said they want to see an immediate ban on no-fault evictions.
They also plan to introduce a national register of licensed landlords, with three-year tenancies becoming the new default. The Lib Dems want to bring in a ‘Rent to Own’ model for social housing too. This would enable social tenants to gain a growing stake in their rental homes and would mean they could own their properties outright after 30 years.
You can read more here.
Green Party
The Green Party is pledging to provide 150,000 new social homes every year, through a combination of new build and refurbishment of older housing stock, a community Right to Buy scheme for local authorities, and ending the individual Right to Buy scheme to keep social homes for local communities.
Their ‘Right Homes, Right Place, Right Price’ Charter aims to protect green spaces for communities, reduce climate emissions, tackle fuel poverty and provide affordable housing. They want all new developments to be accompanied to extra investment in local health, transport and other services.
They also plan to help bring down household bills by investing heavily in local authority led, street by street retro-fit programmes to insulate our homes and start to adapt properties to increasingly extreme weather conditions.
You can read more here.
Reform UK
Reform UK plan to introduce fast-track planning and tax incentives for development of brownfield sites, as well as incentivising innovation to speed up building through modular construction, digital technology and building sites that improve efficiency and cut waste.
They also aim to restore landlords’ ability to set mortgage interest against income for tax purposes and provide greater protection to leaseholders, ensuring it is cheaper and easier to extend leases and buy freeholds.
It pledges to cut Stamp Duty land tax, increasing the nil rate band to all purchases below £750k and reducing the rates charged above that. It also plans to abolish inheritance tax on all estates below £2m.
You can read more here.
