Next year, there will be an election. The exact date has not been fixed yet, but it is likely to be sometime in autumn, and the way the opinion polls are going, there’s a pretty good chance it will result in a Labour government. So what are their plans for the housing market?

When it comes to housing, Labour have traditionally been a party of high tax and regulation, championing everything from mansion and wealth taxes to rent controls, licensing schemes and increases in Capital Gains Tax (CGT). It is therefore no surprise to find that the property industry views them with a degree of suspicion. Ironically, during the course of the last five decades, house price growth has actually been considerably higher under Labour than the Conservatives. During Blair’s time in power, for example, house prices rose by £48/day. Under John Major, that figure was just £3/day. Jeremy Corbyn’s more hardline policies, though, did a lot of damage to Labour’s credibility and led to a heavy defeat in the last general election. As a result, Keir Starmer has been very keen to put as much distance between himself and Corbyn as he can. To that end, he has made it very clear that his will not be a high tax and spend government but will, instead, stick to the path of fiscal responsibility. Labour has also come to the realisation that housing, with its high prices and low building levels, is a serious issue for voters and will be focusing considerable time and effort on the sector.

Labour’s plans were revealed to great fanfare at their Liverpool conference, with Deputy Leader Angela Rayner claiming:

“The next Labour Government will deliver the biggest boost to affordable housing for a generation – with social and council housing at the heart of Labour’s secure homes plan.”

Below is a list of their main aims:

1. The building of 1.5 million new homes in 5 years. This will include the creation of a number of Milton Keynes-like new towns.
2. A major shake-up of the planning system to make it faster and more efficient, as well as encouraging a more populist/localised approach to building design.
3. Developers to be forced to build more affordable housing. Section 106 rules will be tightened to stop developers ‘welching’ out of commitments to build affordable housing made during planning applications by later claiming ‘circumstances’ had changed.
4. An end to nimbyism. Local authorities and mayors are to be given more powers to overrule objections.
5. A more nuanced/relaxed approach to building on the Green Belt.
6. The building of more social housing. Numbers will be boosted by allowing councils to allocate more funds to the area.
7. Support for first-time buyers. FTBs will be given ‘first dibs’ on new developments and offered a government-backed, first-time buyer mortgage guarantee scheme.

Overall, it is a laudable set of ambitions, and anything that encourages more building would be especially welcome, but what about tax, green issues and the rental and holiday let markets?

Tax: Labour has stated in the past they won’t put up CGT or the top rate of income tax. Shadow Chancellor Rachel Reeves has also said that it has no plans for a wealth tax. They are, however, considering increasing stamp duty for foreign buyers.

Rental market: Despite the demands of various mayors, including London’s Sadiq Khan, Labour have said they are not in favour of rent controls. However, the previous Shadow Housing Secretary, Lisa Nandy, said that a Labour government would ‘tilt the balance of power towards tenants with new rights and protections for renters.’ What that actually entails is not yet clear, but they have previously published a Renters’ Charter. The charter included an end to no-fault evictions and proposed allowing renters to not only keep pets but also make reasonable alterations to the property. In addition, landlords would have to give four months’ notice and there would be an end to automatic evictions for rent arrears. Whatever they finally decide to do, with their aim to ‘restore social housing to the second largest form of tenure’, they clearly have big plans for the sector.

Holiday lets and second homes: Labour have suggested they may introduce a compulsory landlord licensing scheme for short-term lets and are apparently also considering substantial rises in council tax for second and holiday homes.

Housing and the environment: Labour has pledged to turn Britain into a clean energy superpower and is committed to ensuring that the country’s electricity system will be net zero by 2030. There are not many details for this yet, but they have said they will increase funding to £6bn per year to encourage the installation of low-carbon heating and improve the energy efficiency of our homes.

Whatever you think of Labour’s plans for the housing market, it is worth remembering that politicians’ promises are rarely binding. And, if the measures actually make it into their manifesto, there is still no guarantee they will turn into legislation.