NLYH-13-07-2024-LabourPolicy-YOR

After collecting the keys to Number 11 Downing Street, she also promised to “get Britain building again” by bringing back mandatory house building targets and loosening planning red tape, something that has struck fear into some communities where green space is valued for its positive impact on nature, health and wellbeing.

In her first speech as Chancellor, she added that Labour’s aim is to build 1.5 million homes in England over the next five years. However, she emphasised that this will not entail giving a "green light" to all housing developments.

Building on grey belt was also mentioned. Grey belt is a new term coined by Labour and translates as green belt land that is seen as ugly and poor quality. This could include wasteland.

This term was in the Labour Party manifesto and Deputy Labour Leader and Secretary of State for Levelling Up, Housing and Communities Angela Rayner has said that she will write to local planning authorities, to instruct them to review their green belt land in order to identify potential grey belt areas where new homes could be built.

The Government, which has given Matthew Pennycook the job of Housing Minister, has stressed that brownfield land must be prioritised over grey and green belt, though most local authorities will tell you that this does not appeal to most developers due to costs of remediation and increased time scales..

However, if plans to build housing on Green belt are passed, they must include at least 50 per cent affordable homes and new public services and infrastructure must be introduced.

The new Government has also said that any development on green belt must be accompanied by a plan to improve existing green spaces and create new ones accessible to local people.

It has also pledged to establish an independent taskforce to identify sites for several new towns and it aims to deliver homes there by the end of its five year parliamentary term.

Labour has also said it will hire 300 more local planning officers to be funded by increasing Stamp Duty Land Tax on purchases of non-residential property by non-UK residents by one per cent

Over to the rental sector and Labour’s manifesto pledged to abolish section 21 evictions to protect tenants from arbitrary evictions and to raise standards in the private rented sector, which will include reintroducing minimum energy efficiency requirements for private rented homes to be implemented by 2030.

Landlords and letting agents on the other hand are calling for tax reform for landlords and say the current regime has driven too many landlords out of lettings market. They also point out that residential property lets are the only businesses in the UK that do not have taxes offset.

As for the new Government’s effect on the residential property market, Tim Bannister, Rightmove’s property expert is upbeat: “The certainty of having the next government in place will be good for the market, and we wait to see the housing policies that are prioritised.

“We can see in our data that in previous election years, there has been a slight bounce in home-mover activity after an election has taken place so the same could happen this year in the short term, particularly against a background of a potential Bank Rate cut on the horizon, and lowering mortgage rates.

He adds: “It is crucial that the government considers the impact of any new policies on the wider market, as a policy designed with one group in mind often has knock-on implications for another group of home-movers.

“It's encouraging to see that Labour’s manifesto focused on building more homes and planning reform. Creating more homes for sale and for rent quickly, whilst maintaining quality is a pressing issue, to ensure there are more homes to meet the demand.”

Tim adds that there is an opportunity to go further in supporting to first-time buyers. Labour has already promised that the mortgage guarantee scheme will be permanent, only a few benefit from it.

Rightmove also want existing stamp duty thresholds made permanent for first-time buyers and is calling for help with their deposit for first time buyers.