With Starmer having vowed to deliver “the biggest boost to social and affordable housing in a generation” as part of Labour’s landslide win, some of the ambitious plans outlined in the manifesto have inevitably been met with a level of scepticism. So, what will the new Labour government’s proposals mean for the property market? In the absence of foresight, let’s take a look at what some of the leading industry experts are saying…

The abolishment of Section 21

With Labour having promised to scrap this legislation, allowing ‘no fault’ evictions if elected, Labour’s victory will of course have caused significant concern for landlords.

Industry reaction: Paul Shamplina, founder of Landlord Action, acknowledging this, has also referenced deputy leader Angela Rayner’s recent comments in relation to the complexities of ending Section 21, having said to LBC “we must also ensure the courts system is working and that we’ve got a fair balance between landlords and renters.”

Shamplina however predicts that landlords will still be taking action:

“Nevertheless, given Labour’s pledge, we now anticipate a further surge in the number of landlords serving Section 21 notices in the coming months. Landlords are likely to act pre-emptively to protect their interests before any legislative changes take effect. At Landlord Action, we have already seen an increase in instructions for Section 21 notices as many landlords move to secure their rental income or prepare their properties for sale.”

“The primary concern for landlords is that without the ability to use Section 21, they might face significant challenges in managing problematic tenancies effectively. The uncertainty surrounding the timing and implementation of these changes is likely to drive more landlords to take action now, rather than risk being unable to address issues swiftly in the future.”

Stamp Duty exemption for first-time buyers

Seemingly good news for first-time buyers, who have not only been promised a Freedom to Buy scheme but will also see their Stamp Duty exemption reduced back to £300,000 from April 2025. But are these initiatives enough to make a significant impact within the current climate?

Industry reaction: Matt Thompson, head of sales at Chestertons, said: “Labour’s announcement to lower the Stamp Duty threshold for first-time buyers from £425,000 to £300,000 in April 2025 has left many wondering if the party will introduce any major initiatives that will make it easier to get on the property ladder.”

“Buyers will be looking for Labour to fulfil its pledge to introduce the Freedom to Buy scheme but are concerned that buying a first home continues to be challenging.”

John Fraser- Tucker, the head of mortgages at Mojo Mortgages, said: “The housing market has seen dramatic changes over the past 14 years. When the Conservatives came into power in May 2010, the average house price was £170,846. Today, it stands at £282,776 – an increase of over £111,000 or 65 per cent.”

“First-time buyers are currently facing the hardest conditions in 70 years, so the newly elected government needs to address this issue head-on.”

“It’s also important that their solutions are not just quick fixes as this could lead to unsustainable debt for first-time buyers. Instead what they need is concrete, effective action that makes the dream of homeownership a realistic possibility.”

Adding VAT to private school fees: An additional property market driver?

Industry reaction: Nigel Bishop of Recoco Property Search said: “Labour’s pledge to levy VAT on school fees has been labelled one of the party’s more controversial ones. This will leave many parents unable to afford private school education and inevitably impact on the property market by boosting demand for properties in close proximity to good state schools. Properties in these catchment areas can already ask a 20% premium and a politically-caused boost in demand for such homes will create an even more competitive market for buyers.”

“In the run-up to the general election we already saw house hunters, who previously paused their activity to observe the political development, resume their search. Now that a party has been elected and economists predict a likely interest rate cut over the coming months, we expect further buyers to follow suit.”

‘Get Britain building again’

Industry reactions: Helen Gordon, CEO of Grainger plc said:

“We look forward to working with the new Labour Government to support them in achieving the delivery of 1.5 million new homes, whilst driving economic growth nationally.”

“We are optimistic that with the new Government in place, now is the time to move forward with implementing measures to improve standards for the 5m+ rental households across the UK, creating a better experience for renters, whilst supporting landlords, and encouraging investment into more much needed high quality rental homes.”

Nathan Emerson, CEO of Propertymark, commented: “Propertymark welcomes wide-ranging engagement with the new Labour Government to help steer an objective pathway forward for the housing sector. We have seen a chronic undersupply of affordable new housing for many years.”

“Sustainable housing is the foundation for any strong economy and there must be clear and well thought out plans that inspire investment and improve supply moving forwards. We want to see long-term cross-party cooperation that delivers the right kind of homes in areas they are desperately needed.”

Jo Davis, Principal and UK Executive Chair, Avison Young, said: “The proposed Planning Reform aims to kickstart housebuilding with the Housing Recovery plan, promising a swift implementation. Balancing residential growth in urban brownfield and grey belt areas whilst creating quality and resilience places with industrial and economic needs is crucial. Last-mile logistics are increasingly vital, yet industrial projects often lose out to housing in urban fringes. Strategic planning is essential, integrating housing with necessary infrastructure like retail, logistics, health and overriding requirement for power to meet modern consumer demands effectively.”

“Transport infrastructure is pivotal for supporting growth, but planning delays and power supply challenges hinder industrial development. These delays impact local economies and job creation, underscoring the need for streamlined processes and improved energy strategies, such as enhancing solar use on industrial rooftops, wind farms. Addressing these challenges is vital to ensuring sustainable, balanced development under the new Planning Reform agenda.”

Green Belt policy 

Industry reaction: Claire Dutch, co-head of planning at law firm Ashurst said: “There is a lot they can do under the current framework – relax Green Belt restrictive policy, introduce top down mandatory housing targets and properly resource the local authorities.”

“They can achieve a lot by changing the National Planning Policy Framework and bringing in the new National Development Management Policies, introduced by the Levelling Up and Regeneration Act last year, which will have the force of a local plan and even top trump the local plan where there is an inconsistency.”

A renewed sense of hope?

Industry reaction: Stephen Bell, Chief Executive of Turley, said: “Labour’s win should bring a renewed sense of hope to the housing market. The party’s commitment to building more homes was clear in the run-up to the election and we hope they deliver on the promises set out.”

“While the 1.5m housing target is clearly welcome, it’s critical we look at what has stopped us from building at these levels over the last decade and address those problems as a priority. A more positive and resourced planning system will be key to that.”

“There are immediate changes to the NPPF [National Planning Policy Framework] that should be made to support new development, but we also need a long-term strategy for housing that provides the housing market with a clear plan on how we can build the homes we so desperately need.”

“Labour promised change. They must now deliver it.”

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