What political parties offer on housing in their Manifestos
It's been a week of Manifesto launches, with all major political parties setting their stall on all major issues facing the country. As usual, housing has always taken centre stage. So, what are the various political parties offering aspiring homeowners and renters?
Liberal Democrats:
Liberal Democrats were the first to launch their Manifesto this week and had plenty to say on housing. Here is what the Liberal Democrats have promised they will change on housing should they be in office on July 5th
They have pledged to build 1.9 million homes by the end of the next parliament and increase the number of social homes by 150,000 a year.
They have promised to ban no-fault evictions immediately, making 3-year tenancies default and creating a national register of licensed landlords.
Giving local authorities the power to end the Right to Buy in their areas.
Abolishing residential leasehold and capping ground rents to a nominal fee, giving people control over their homes.
The Property Posts view on Liberal Democrats Manifesto:
Liberal Democrats offer nothing new, and where the Manifesto falls short is the lack of help for first-time buyers and the lack of innovative ideas. The idea that they would build 1.9 million homes by the end of the next parliament is a fallacy and will not happen. The idea of 150,000 social homes is well-placed but, again, is not achievable.
The promise to end no-fault eviction and make 3-year tenancies default makes little sense. If the party is going to ban no-fault eviction, why is there a need for a default tenancy length? Does this mean the landlord and the tenant are stuck with one another for three years?
Giving local authorities more power to end the Right to Buy will be a sensible move, especially in areas with acute shortage of homes, which will allow local authorities to keep hold of more social housing stock. Abolishing residential leaseholds and capping ground rents to a nominal fee is something that must happen whichever party comes into power; we have written extensively at the property post how the leasehold form of homeownership is the most unfair form of homeownership and should be banned entirely.
Conservatives:
Conservatives launched their Manifesto on Tuesday this week and had more radical or, as they would call it, bold ideas on housing. Here is what the Conservatives have promised they will change on housing should they return to power on July 5th:
Conservatives have promised to build 1.6 million homes by the end of the next parliament, outdoing Labour by 100,000 homes (a gimmick)
Increasing the threshold for first-time buyers to pay stamp duty from £300,000 to £425,000.
The party has also promised to bring back Help to Buy for first-time buyers. Under this scheme, the government offers 20% equity in a new-build property on a loan that is interest-free for the first five years.
A temporary Capital gains tax relief for landlords who sell to their existing tenants for two years.
A promise to pass the Renters Reform Bill abolishing Section 21, no-fault evictions.
Capping ground rents at Peppercorn over time for leaseholders.
The Property Posts view on Conservatives Manifesto:
The Conservative Party's promise to build 1.6 million homes by the end of the next parliament seems somewhat of a gimmick to outdo the Labour Party's pledge to build 1.5 million homes, and it will not happen. Increasing the threshold at which first-time buyers start paying stamp duty will help those outside London and some areas of the South East. The reintroduction of the Help to Buy policy for first-time buyers might help them get onto the property ladder, but the policy artificially inflates house prices, which is not helpful for first-time buyers.
The renter's reform bill was making its way through parliament before it was dissolved, and we have no doubts that it will make a comeback under whichever party takes power. The leasehold reforms to cap ground rents at Peppercorn were promised in the last Manifesto, but the Conservatives failed to deliver these, so why should they be trusted to deliver them now?
By far, the biggest and boldest policy announcement on housing was scrapping the Capital Gains Tax for two years for landlords who sell to their existing tenants. One of the biggest mistakes that many policymakers and campaigners make is that they assume that most tenants want to become homeowners. Some prefer to rent instead of buying, and we await policy details. However, the policy could also be abused by some, and the treasury is the one that is likely to lose out.
Green Party:
Green Party launched its Manifesto on Wednesday and, as predicted, had a lot of promise to make homes more energy efficient. Here is what the Greens have promised on housing:
Include solar panels and heat pumps in new homes £29bn over five years for home insulation to EPC B standard
£4bn over five years for other building insulation
£9bn over five years for low-carbon heating systems
Provide 150,000 new social homes annually
Implement rent controls and end no-fault evictions
Tenants' right to demand energy efficiency improvements
The Property Posts view on Green Party's Manifesto:
The party has made a lot of promises to make homes more energy efficient, but it's not clear how they will fund these initiatives. The plan to install heat pumps and solar panels in all new homes could will slow down construction due to a shortage of trained professionals. Additionally, the introduction of rent controls is concerning as it could reduce the supply of rental properties and drive up rents, which are already at an all-time high. Scotland serves as an example of why rent controls may not be effective. It also needs to be clarified how tenants could request energy efficiency improvements. Overall, the Greens Manifesto pledges are for those conscious of the climate and will require significant investment to meet their ambition.
Labour Party:
The Labour Party was the last to launch its manifesto commitments this week, and if the polls are correct, it is probably the manifesto you most need to pay attention to. The Labour Party will likely come into power on July 5th, and here is what they promised on housing.
Labour has pledged to build 1.5 million new homes and a new generation of new towns.
Review right-to-buy discounts and increase protection on newly built social homes.
A 2030 date for all rented properties to have a minimum energy efficiency standard (Likely to be a C rating minimum).
The party will immediately ban no-fault evictions and empower renters to challenge unfair rent rises
Introduce Awaab’s law in the Private Rental Sector
Tackle unregulated and unaffordable ground rent charges
The Property Posts view on Labour Party's Manifesto:
The promise to build 1.5 million new homes and introduce a new generation of new towns will not come to fruition. Our analysis has shown why the Labour Party's plans to accomplish this are flawed. The party's proposals for the Private Rental Sector do not offer much differentiation from those of other political parties, and most of their policies are likely to exacerbate the existing shortage of rental homes in the UK. The scope of support for leaseholders appears to be quite limited, and we would have preferred to see more comprehensive details on this matter, which unfortunately has not been the case. There is a lack of specificity regarding the timing and methods of implementation. However, with Labour being the most likely party to form the government by July 5th, it is crucial to closely examine and scrutinise these pledges.
