We all know that labour made some big promises during their campaign and manifesto, there are lots of things that will be changing and there are even some bold changes planned for the property industry too.

We work with sellers, investors, and developers to help them achieve their goals. We have already seen boosts in land sales through our auction so soon after the election for one reason or another. We are here to break down the changes to the property market that Labour have promised, and what that means.



Stamp Duty, House Prices, and Transaction Volumes

Labour has said the nil rate band for stamp duty will revert to £300,000 from the current temporary level of £425,000 in April next year, which is probably not the news first-time buyers will want to hear. The Tories had planned to make the tax break permanent.

On the other hand, Labour has said it will make it easier to secure a deposit under a so-called Freedom to Buy scheme. It would essentially be an extension or rebrand of a plan started under the Conservatives so unlikely to boost demand in a meaningful way.

Housebuilding

Labour has said it plans to deliver 1.5 million over the course of the next Parliament. Housebuilding is largely demand-led, which is driven by economic cycles not the bandwidth in the planning system. Despite the rhetoric, the government doesn’t build houses.

Labour has indicated it will take early action to change the National Planning Policy Framework and restore housing targets. Such a shift in emphasis will be welcomed by developers but it doesn’t alter the fact private housebuilders deliver homes according to demand and at a price set by the second-hand market. They have also agreed to approve to build on green-belt land. Something that has been widely criticised by naturalism lover all around the UK.

We have already seen an increase in the purchase of land by housing developers. Although Labour have no direct association with the building of house, it seems that their promises have made developers excited. If you are looking to build properties or sell land, now is the time.

Renter’s Reform

This is another area with the potential for a clash between what is politically desirable and economically possible. The risk for the lettings market is the introduction of policies that make it too financially punitive to become or remain a landlord, which could result in more owners selling up and higher rents.

The Labour Party will revive the abandoned Renter’s Reform Bill in some form and had previously said it would end no-fault evictions “on its first day in power”. Labour has also pledged to end so-called bidding wars, a policy based on the assumption that high demand and low supply is a permanent feature of the lettings market. As we are currently seeing at the higher-value end of the London market, rising supply means asking rents are rarely met at the moment.

If you are interested in riding the wave, and getting your land sold quickly, contact us to get started as soon as possible.

Call us or send us an enquiry.