With the general election now behind us, the future of housing and rental reform in the UK is a significant concern for landlords. The election has brought various promises and potential changes that could shape the property market for years to come. Here’s what landlords need to know about the housing manifestos of the main political parties and the anticipated changes in the rental sector.
Conservative Party’s Housing Plans
House-building: The Conservatives aim to deliver 1.6 million well-designed homes in suitable locations while protecting the countryside.
Planning Reform: A fast-track planning route for new homes on previously developed land in the 20 largest cities will be introduced. Councils will be required to set land aside for local and smaller builders.
Green Belt: A ‘cast-iron commitment’ to protect the Green Belt from uncontrolled development.
First-time Buyers: Plans include making the temporary first-time buyer Stamp Duty relief on homes up to £425,000 permanent and introducing a new Help to Buy scheme. They will also continue the mortgage guarantee scheme.
Renting: The Renters Reform Bill will be passed to abolish Section 21 and strengthen other grounds for evicting tenants.
Energy Efficiency: An investment of £6 billion over the next three years to make around 1 million homes warmer, along with funding for an energy efficiency voucher scheme.
Building Safety and Leaseholders: Continued support for leaseholders affected by historic building safety problems and ongoing leasehold reform.
Stamp Duty and New Towns: No increase in stamp duty and ensuring the London Plan delivers more homes on brownfield sites.
Social and Affordable Housing: Renewing the Affordable Homes Programme to deliver homes of all tenures and introducing new ‘Local Connection’ and ‘UK Connection’ tests for social housing.
Right to Buy: Ensuring Right to Buy discounts rise with inflation and preventing local authorities from abolishing the Right to Buy.
Capital Gains Tax and Council Tax: Introducing a temporary Capital Gains Tax relief for landlords who sell to their existing tenants and maintaining the current number of council tax bands.
Holiday Lets and Homelessness: Requiring councils to manage the holiday let industry and continuing plans to prevent homelessness.
Labour Party’s Housing Plans
House-building: Labour pledges to build 1.5 million new homes during their term and restore mandatory house-building targets immediately.
Planning Reform: Strengthening the presumption in favour of sustainable development and funding additional planning officers.
Green Belt: Committed to a brownfield-first approach and protecting the green belt.
First-time Buyers: Launching a permanent mortgage guarantee scheme and prioritizing first-time buyers over international investors.
Renting: Overhauling the regulation of the private rented sector, abolishing Section 21 ‘no fault’ evictions, empowering tenants to challenge unreasonable rent increases, and raising standards.
Energy Efficiency: Doubling investment to upgrade 5 million homes through the Warm Homes Plan, offering grants and low-interest loans for insulation, solar panels, batteries, and low carbon heating.
Building Safety and Leaseholders: Improving building safety through new regulation and enacting Law Commission proposals on leasehold enfranchisement, right to manage, and commonhold.
Stamp Duty and New Towns: Increasing the stamp duty surcharge for non-UK residents and building a ‘new generation of new towns’.
Social and Affordable Housing: Delivering the biggest increase in social and affordable housebuilding in a generation.
Right to Buy and Capital Gains Tax: Reviewing the increased Right to Buy discounts and not introducing capital gains tax on private homes but closing loopholes in the private equity industry.
Homelessness: Developing a new cross-government strategy to end homelessness, working with Mayors and Councils.
Liberal Democrats and Housing
The Liberal Democrats aim to build 380,000 new homes a year, including 150,000 social homes, via ten ‘new garden cities’ and community-led developments. They also plan to introduce a Rent to Own model for social housing, abolish leasehold, cap ground rents at a nominal fee, and ban no-fault evictions.
Green Party and Housing
The Green Party’s ‘Right Homes, Right Place, Right Price Charter’ focuses on protecting green spaces, reducing climate emissions, tackling fuel poverty, and providing genuinely affordable housing. They pledge to build 150,000 new social homes annually and push for a retrofit program to insulate homes while advocating for rent controls.
Reform UK and Housing
Reform UK aims to unleash housebuilding across the country, cut immigration, and fast-track planning for large residential developments. They propose tax incentives for brownfield site development, reforming social housing law to prioritize local people, and a revised stamp duty system with a 0% rate below £750k, 2% from £750k to £1.5m, and 4% over £1.5m.
Post-Election Protocol and Legislative Agenda
Following the election, a new Parliament will meet, and the State Opening of Parliament will take place on 17th July. The King’s Speech will outline the government’s proposed policies and legislation for the session, including housing reforms.
With the dissolution of the previous Parliament, the Renters Reform Bill did not pass. A key topic will be whether a version of the Renters Reform Bill, potentially including the Regulation of Property Agents (ROPA), will appear on the new legislative agenda.
Just Lets – Your Property Management Partner
At Just Lets, we stay ahead of political changes to provide the best advice and services for our landlords. Contact us today for expert property management and stay informed on how legislative changes can impact your investments.
