What Are Labours Housing Policies?

Labour’s Housing Policies for the Next Five Years

The UK have voted for a Labour Government after 14 years of the Conservative Party. They have promised many changes including an ambitious manifesto for the PRS, focused on tenancy reform, housebuilding, social housing, energy efficiency, welfare and building safety to name a few.  

Here is a summary of what we can expect from the Labour party over the coming years in relation to the Private Rented Sector. 

Immediate Actions and Rental Sector Reforms:
One of the most talked about points from all parties has been the proposed Renters Reform act. Labour promises the immediate abolition of Section 21 "no fault" evictions within 100 days of being elected. The Conservatives showed some promise in re-evaluating their approach to this after listening to industry feedback regarding the current state of the court process for alternative notices, namely the Section 8 notice. Questions still remain about how the court system will be modified or improved to cope with the increase in Section 8 eviction notices and so far, Labour have not given any indication of how they expect to approach this. Quite often when housing policies are rushed through, we experience some 'unintended consiquences' causing confusion and turmoil to the industry. We hope to see the Labour government taking on board industry feedback with regards to this so that we can avoid any disruption to this process.

The party will also empower renters to challenge unreasonable rent increases and extend "Awaab’s Law" to the private sector which mandates strict standards for damp, mould and other hazards. This law was brought in after Awaab Ishak tragically died due to complications and poor living conditions in a housing association home in 2020. The law aims to raise standards in safety and habitability in rented properties.

Energy Efficiency and Sustainable Homes:
Labour will ensure that all rental properties achieve an EPC rating of C or above by 2030. This move aims to make renters £250 better off annually by improving the energy efficiency of rental homes.They aim to invest 6.6 billion during their tenure to upgrade five million homes, cutting bills and reducing carbon emissions. Their 'Warm Homes Plan' will offer grants and low interest loans to support Landlords and homeowners to ensure homes are more efficient without requiring anyone to dispose of their boilers.

Building and Planning:
Labour aims to build 1.5 million new homes and prioritize brownfield development while protecting the green belt. They will update the National Policy Planning Framework and support local authorities with additional planning officers funded through increased stamp duty surcharges for non-UK residents.

Affordable and Social Housing:
Labour commits to the largest increase in social and affordable housing in a generation. They plan to strengthen planning obligations for affordable homes, support councils and housing associations, and review right-to-buy discounts.

New Towns and Urban Extensions:
Labour plans to build new towns and large-scale communities across England, inspired by the 1945 Labour government. They will introduce new mechanisms for cross-boundary strategic planning and give Combined Authorities new planning powers.

Compulsory Purchase and Land Assembly:
Reforms will be made to compulsory purchase compensation rules to improve land assembly and speed up site delivery. Labour aims to ensure fair compensation for landowners based on the public interest rather than inflated prices.

Homeownership and First-Time Buyers:
Labour will give first-time buyers priority to buy homes, introduce a permanent mortgage guarantee scheme, and end the practice of selling entire developments to international investors before construction.

Taxation, Finance, and Welfare:

Labour intend to review the Universal Credit sytem to ensure it supports work and tackles poverty. They have promised not to increase National Insurance, VAT, or any basic, higher, or additional rates of income tax. Labour have stated they will be giving families and businesses ample warning of tax and spending policy changes and aim to ensure only one major fiscal event each year.

A business taxation roadmap will be published to help businesses plan confidently, with a commitment to cap corporation tax at the current level of 25%.

Additional Measures by Party Leader Sir Kier Starmer:
Starmer has pledged to clamp down on unscrupulous landlords, ending bidding wars and capping upfront payments to secure properties.

These policies collectively aim to address the housing crisis, improve rental conditions, and increase the availability of affordable housing in the UK.

What Happens Now?

The Kings speech and opening of parliment will take place on Wednesday 17th July where the Government will layout its plans for the coming year. This will give us a better indication of what housing policies Labour intend to prioritise.

Once we have this information, we will be able better advise our clients with the hope that some positive changes will be made. We all want to see high standards in the PRS, but there are a few, quite large subjects that are causing a lot of concern and raising a lot of questions for Landlords and Agents alike.

As always, we will keep everyone posted with updates as we have them.