What the Labour landslide means for agents

The votes have been counted, the rosettes have been put back in the cupboard and Keir Starmer has taken residence in the flat above 10, Downing Street.

But what does his landslide election victory – an overall majority of 172 seats – mean for property sales and lettings?

The first things is…it’s over! After six weeks of campaigning, debating, claims and counter-claims, we have a definitive result. That means an end to uncertainty and we can now look forward to a period of stability in Government.

Together with the prospect of an imminent cut in base rates (and, subsequently, mortgage rates) we should see a return of confidence among those first-time buyers who have been ‘waiting and seeing’ before taking the plunge and actively seeking a new home.

The property market has been revving up since the beginning of the year without actually getting very far – the prospect of economic stability and a dip in mortgage rates could finally get things moving at a steady pace.

Housing policy

In terms of practical policies to ease the housing crisis, Labour has concentrated most of its efforts on the supply side in a bid to achieve maximum growth. That means building more new homes – 1.5 million new homes by the end of the Parliament, to be exact.

That is hugely ambitious and requires a total revamp in planning regulations to tempt developers to make the investment necessary.

The new Government has pledged to introduce a set of ‘golden rules’ for sites potentially earmarked for new housing which include a ‘brownfield first’ approach.

However, they also include the introduction of ‘grey-belt’ land – which could be formally designated as green-belt but includes old car parks or garages – spaces which lack natural beauty but were protected from development – until now.

They say that Britain could not build the homes it needs without releasing some land currently classed as green belt.

All of which means that the first new homes built under the new regime would not be available for a year or two. So what practical measures are they taking in the here and now?

Their manifesto commits to a Freedom to Buy Scheme to help working people who struggle to save for a large mortgage deposit. Labour promises to work with lenders to ensure an increased uptake among first time buyers and is also offering local people ‘first dibs’ on new developments in their area.

On stamp duty, Labour plans to keep the current exemption for FTBs on homes priced up to £425,000 but haven’t committed to extending it beyond the March 2025 expiry date when it could revert to £300,0000.

New renters reforms

On the lettings side, we can all look forward to a return of a Renters Reform Bill. The Labour government has pledged to abolish Section 21 (so-called ‘no fault’) eviction as soon as possible and the measure will most likely be included in a new Bill to reform the private rented sector (PRS). The last government had controversial legislation on the verge of being passed when it was abandoned because Parliament was dissolved when the election was called.

The new Bill is likely to include stronger rights for tenants to challenge rent rises, the introduction of a Decent Homes Standard and the extension of Awaab’s Law to the PRS – under which landlords have strict timeframes to fix damp and mould issues and other matters of health and safety.

The new Government is also like to re-introduce Minimum Energy Efficiency Standards (MEES) which were scrapped by the Conservatives last year. Labour has pledged to cut energy bills by £300 for every household by 2030 but has also promised landlords it will not force them to rip out old boilers under the new rules.

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