UK

Labour unveils manifesto housing plan

housing development

Labour has set a home ownership target of 70%, which will be supported in part by the launch a new mortgage guarantee scheme, enabling buyers to purchase new build property with a 5% deposit

Sir Kier Starmer has just unveiled the long-awaited Labour manifesto outlining the key policies for a future government.

Labour says it wants to raise taxes by £8.6 billion by launching raids on overseas property investors, private schools and non-domiciled residents.

When it comes to housing, the party has pledged a major shake-up of the industry with a view to helping more FTBs gain a foot on the housing ladder.

The party wants to develop 1.5 million homes, including the “biggest increase in social and affordable housebuilding in a generation” by utilising “poor quality” green belt land.

Labour has set a home ownership target of 70%, which will be supported in part by the launch a new mortgage guarantee scheme, enabling buyers to purchase new build property with a 5% deposit.

It will also press ahead with the Renters (Reform) Bill, including the scrapping of Section 21 evictions.

The 125-page manifesto also confirmed the Labour party will take “decisive action” to improve building safety through new regulation.

Meanwhile, it promised to review how to better protect leaseholders, who do not own the land they live on and can be struck with sky-high service charges and ground rent.

Additionally, they also said the party would tackle unregulated and “unaffordable” ground rent charges as well as “unfair” maintenance costs.

Commenting on the plans, Tim Bannister, Rightmove’s property commentator, said: We welcome policies and innovations which are trying to help more FTBs onto the ladder. Housebuilding needs to be accelerated, and creating a permanent mortgage guarantee scheme would at least give FTBs the certainty that the option will be there.

Nevertheless, we know from our own research that policies such as the mortgage guarantee scheme have limitations, and are only able to help a very small pool of future FTBs that fit specific requirements. One of the biggest hurdles for FTBs is being able to borrow enough from a lender, which a mortgage guarantee scheme does not address, he added.

Nathan Emerson, CEO at Propertymark, said: Pledges to reform the planning system, commit to a brownfield-first approach, making the private rental sector more energy efficient, and a commitment to build 1.5 million new homes over the next parliamentary term are more than welcome.

He added: The planning process can be a huge barrier in keeping pace with demand and change is desperately needed in order to serve an ever-growing population. Many buyers have had a tough time since the 2008 recession, and it is vital any future strategy includes a sustainable mix of affordable housing options for both buyers and renters.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Invest for Property. The information provided on Invest for Property is intended for informational purposes only. Invest for Property is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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