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  • Writer's pictureElliot Leigh

Labour in power - What does this mean for UK housing?

Updated: 5 days ago

The Labour Party has made it no secret about their mission to 'break down the barriers to opportunity' when it comes to the UK housing market. Now officially in power following the 5th July General election, our guide below details key areas Labour have pledged that will affect landlords, letting agents and tenants in the sector.

Abolishment of section 21

The biggest rental sector headline from Labour’s manifesto may well be its pledge for the “immediate” abolition of Section 21 eviction powers, However, as letting agents and landlords have seen during the Renters (Reform) Bill, this will not be an easy task.

“We will immediately abolish Section 21 ‘no fault’ evictions, prevent private renters being exploited and discriminated against, empower them to challenge unreasonable rent increases, and take steps to decisively raise standards, including extending ‘Awaab’s Law’ to the private sector.”

Currently, it is unclear how Labour will deliver this pledge to immediately ban Section 21, there have only been promises that they will. Due to the Renters (Reform) Bill not passing before the dissolution of parliament, letting agents and landlords are still able to continue serving no-fault evictions.

Tackling the Housing Crisis

Labour is on a mission to fix the UK's long-standing housing shortage. Their plan? To pump significant investment into building new homes, aiming for an ambitious 300,000 annually. These will include a mix of social housing, affordable homes, and options for first-time buyers. By ramping up the supply, Labour hopes to make homeownership a reality for more people.

Boosting Social Housing

A big part of Labour's housing policy is all about expanding social housing. The government is set to build hundreds of thousands of council homes, reversing the decline in social housing stock. This move is geared towards providing secure, affordable housing for lower-income families and reducing dependence on the often expensive and poorly maintained private rental sector.

Rent Control and Tenant Protections

As we know, Labour isn't just thinking about homeowners — they're looking out for renters too. The plan includes introducing rent controls to cap annual increases, making housing costs more manageable. On top of that, Labour aims to strengthen tenants' rights, offering more security and stronger protections against eviction. This approach is intended to create a fairer rental market where tenants feel secure and landlords are incentivised to keep standards high.

Supporting First-Time Buyers

First-time buyers have a lot to gain from Labour's initiatives. A new Help to Buy scheme is on the cards, promising better financial support and lower interest rates for those stepping onto the property ladder for the first time. Labour also plans to crack down on speculative buying, ensuring more homes are available for those who actually want to live in them. Collaborating with organisations like Build Warranty Group can provide these new homeowners with peace of mind through comprehensive warranties.

Promoting Sustainable Housing

Sustainability is a key theme in Labour’s housing strategy. The government is committed to making all new homes environmentally friendly, adhering to strict energy efficiency standards. This includes retrofitting existing homes with modern insulation, heating systems, and renewable energy sources. By focusing on sustainability, Labour aims to cut the housing sector's carbon footprint and lower energy bills for everyone. Ensuring new builds meet high construction standards, companies like Build Warranty Group will be crucial in providing necessary warranties and guarantees, protecting homeowners' investments.

Revitalising Communities

Labour's housing policy also has a strong community focus. The government plans to revitalise neglected urban areas, turning them into vibrant, liveable communities. This involves improving infrastructure, public services, and green spaces to make these areas more attractive places to live and work. By fostering a sense of community, Labour aims to enhance residents' quality of life and boost local economies.

Financial Implications and Funding

Funding these housing initiatives requires substantial resources. Labour's plan includes increased public spending and tax reforms, targeting the wealthiest individuals and large corporations, and closing tax loopholes. This approach aims to generate the necessary revenue without burdening the majority of taxpayers.

Ensuring Quality with Build Warranty

The UK housing market is poised for significant change under Labour. With a strong focus on increasing supply, expanding social housing, protecting renters, promoting sustainability, and supporting first-time buyers, Labour's policies aim to create a more equitable and sustainable housing market. The success of these initiatives will depend on effective implementation and ongoing support.

What does this mean for Guaranteed Rent?

As far as we're aware, there will be no immediate implications to any properties that are leased under our Guaranteed Rent scheme. We will inform you if there are any changes in the future,

What are your thoughts as a Landlord/tenant on Labour's plans for the housing market? Let us know below!

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1 Comment

5 days ago

It alright building houses everywhere but what about the sewers and water supply which are already overextended

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