Labour Party 2024: What It Means For Housing, Mortgages & Property
Jul 05, 2024
The Labour Party's 2024 manifesto includes several commitments related to housing, mortgages and property:
Housing Affordability: Labour proposes to make housing more affordable by implementing several policies. This includes planning reforms to build 1.5 million new homes, restoring mandatory housing targets, and strengthening local planning authorities.
Mortgage Support: The manifesto includes plans to support first-time buyers and keep mortgage rates as low as possible. They propose a comprehensive mortgage guarantee scheme to help those struggling to save for large deposits, thereby reducing mortgage costs.
Social and Affordable Housing: Labour plans a significant increase in the construction of social and affordable housing. They intend to use planning obligations to ensure new developments provide more affordable homes and support councils and housing associations to enhance their capacity for affordable housing supply.
Brownfield Development: The party emphasizes a "brownfield first" approach, prioritising the development of previously used land. This is intended to meet housing needs while preserving greenbelt areas.
New Towns and Urban Extensions: Labour aims to build new towns and urban extensions as part of creating large-scale new communities across England, drawing inspiration from historical initiatives.
Regulation and Policy Framework: There are plans to reform compulsory purchase rules and introduce more strategic approaches to greenbelt land designations. They also propose updates to the National Policy Planning Framework to facilitate these changes.
In relation to policies affecting capital gains taxes and business regulation and taxation:
Capital Gains on Performance-Related Pay: Labour plans to close a loophole that currently allows performance-related pay in the private equity sector to be treated as capital gains, which are taxed at a lower rate than income. By closing this loophole, such payments will instead be taxed as income, aligning it with other sectors and potentially increasing tax revenue from high earners in private equity.
Business Taxation Stability and Reform: The manifesto emphasizes providing stability and predictability in business taxation. Labour commits to maintaining the corporation tax rate at 25% for the entire next parliament, asserting that this rate is the lowest in the G7, which could help maintain UK competitiveness. They also pledge to ensure a stable policy environment that allows businesses to plan investments with confidence.
Regulatory Reform for Innovation : Labour aims to support innovation by creating a more conducive regulatory environment. This includes establishing a Regulatory Innovation Office to help regulators update regulation, speed up approval timelines, and coordinate issues across traditional industry boundaries. There is no change here, and this is already in place.
Business Rates System Overhaul : Labour plans to replace the current business rates system in England with a new system that raises revenue in a fairer way. The new system is designed to better incentivise investment, tackle the issue of empty properties, and support entrepreneurship, aiming to level the playing field between high street businesses and online giants.
LABOUR PLANS 3 BIG HOUSING ANNOUNCEMENTS WITHIN 2 WEEKS - Click To Read
What Next: The State Opening of Parliament and the King’s Speech will be on the morning of Wednesday July 17, where the incoming government will outline its plans for its first year. At this stage we will realise what Labour housing policies are being prioritised by the new government. All new MPs will have to be sworn in, and then there is a summer recess which we are not sure when that will happen.
Press have speculated a new budget from Labour might be released in spring.
They have established their first steps as:
1. Economic Growth and Stability:
Implement tough spending rules to maintain economic stability and keep taxes, inflation, and mortgages as low as possible.
Kickstart economic growth through a partnership with business and a National Wealth Fund to invest in jobs and infrastructure.
Reform the planning system to facilitate the building of 1.5 million new homes. Lets do this!
Implement tough spending rules to maintain economic stability and keep taxes, inflation, and mortgages as low as possible.
Kickstart economic growth through a partnership with business and a National Wealth Fund to invest in jobs and infrastructure.
Reform the planning system to facilitate the building of 1.5 million new homes. Lets do this!
2. Business and Innovation:
Introduce a strategic approach to business taxation that provides stability and allows for long-term planning.
Overhaul the business rates system in England to support high streets and entrepreneurs.
Establish a Regulatory Innovation Office to streamline regulations and foster innovation.
Introduce a strategic approach to business taxation that provides stability and allows for long-term planning.
Overhaul the business rates system in England to support high streets and entrepreneurs.
Establish a Regulatory Innovation Office to streamline regulations and foster innovation.
3. Social and Housing Policies:
Launch a comprehensive mortgage guarantee scheme to help first-time buyers with lower mortgage costs.
Increase the construction of social and affordable housing.
Prioritize brownfield development and update the National Policy Planning Framework.
4. Environmental and Energy Initiatives:
Set up a publicly-owned clean power company to boost energy security and cut bills.
Accelerate the transition to net-zero with a focus on clean energy and job creation.
Enforce stricter environmental regulations, including on water companies to clean up rivers.
Set up a publicly-owned clean power company to boost energy security and cut bills.
Accelerate the transition to net-zero with a focus on clean energy and job creation.
Enforce stricter environmental regulations, including on water companies to clean up rivers.
5. Public Services and Infrastructure:
Increase funding and support for the NHS to improve healthcare accessibility and reduce waiting times.
Develop a ten-year infrastructure strategy to enhance connectivity and support economic growth across regions.
Increase funding and support for the NHS to improve healthcare accessibility and reduce waiting times.
Develop a ten-year infrastructure strategy to enhance connectivity and support economic growth across regions.
6. Education and Employment:
Reform childcare and educational systems to break down barriers to opportunity.
Implement 'Labour’s Plan to Make Work Pay' which includes fair pay and employment rights from day one.
Reform childcare and educational systems to break down barriers to opportunity.
Implement 'Labour’s Plan to Make Work Pay' which includes fair pay and employment rights from day one.
IN SUMMARY:
Its not doom and gloom for businesses and housing, its a step change and a new approach which will see more opportunities. Its an inspiring target to create 1.5 million homes, one that is needed. One thing is clear it will take time to implement and we will have consultations to plan for any new policies. People's incomes won't change over night, any impacts to the pockets of people will take years, so now we have a new government, now might be the right time to do something for you, get your income sorted.
There are always opportunities - its just whether you are open enough to take them, fear is always a blocker, growth and scaling a business is the other side of fear.
Lets go buy some houses!
