What a General Election might mean for the property market

The next UK general election is widely expected to be called later this year, and each party has made different promises regarding the country’s housing market.

Labour Leads in Polls: What it Means for UK Property

Since the dawn of 2022, the Labour Party has maintained a consistent lead in the opinion polls, indicating a favourable position for Keir Starmer’s leadership in the upcoming general election. Recent figures reveal a significant gap, with 43.6% of voters intending to support Labour, compared to 23.2% for Rishi Sunak’s Conservatives.

The political landscape also sees Reform UK at 13%, the Liberal Democrats at 9.2%, and the Green Party at 6%. However, the competition is primarily viewed as a head-to-head clash between Labour and the Tories, with both parties poised to release pre-election manifestos. Amidst this backdrop, it’s pertinent to examine their current stances on the UK property sector.

Common Ground and Divergence

Both Labour and the Conservatives share a commitment to bolstering housing development, albeit with nuanced differences in approach. Each has set ambitious housebuilding targets and proposed measures to alleviate the housing shortage, including increasing land supply and adjusting planning regulations.

In the rental market, both parties advocate for reforms benefiting landlords and tenants, with a shared interest in regulating holiday homes and short-term lets. Moreover, both express a willingness to reform or abolish the leasehold system.

Labour’s Housing Agenda

Labour’s recent proposal to develop the “grey belt” alongside its “brownfield-first” approach has garnered attention. This initiative aims to utilize poor-quality areas within the green belt, such as disused spaces on the outskirts of urban areas. Under Starmer’s leadership, Labour has unveiled the “Get Britain Building Again” pledge, emphasizing affordable housing and a commitment to constructing 90,000 affordable and social homes annually.

In the rental market, Labour has expressed reservations about the Conservatives’ Renters Reform Bill, proposing its own Renters’ Charter with similar provisions. Additionally, Labour champions a Warm Homes Plan to upgrade millions of homes, contrasting with the Conservative government’s recent rollback of energy efficiency regulations.

Conservative Strategy in Property

The Conservatives maintain their long-standing pledge to build 300,000 new homes annually, with a recent shift in describing this target as advisory rather than mandatory. Notably, they prioritize building on brownfield sites and increasing housing density in existing urban centers, steering clear of green belt development.

In the private rented sector, the Conservatives support the Renters Reform Bill, which aims to enhance sector standards and tenant rights. This legislation reflects a broader agenda of improving housing conditions and tenant protections.

However things might change

As the political landscape evolves, so too may the promises and policies of the leading parties. Housing remains a critical issue for the nation, underscoring the significance of forthcoming manifesto pledges.

With the general election looming, expected to occur by January 28, 2025, speculation is rife about when it will be called. Regardless of timing, the outcome will undoubtedly shape the future of the UK property sector.