As the general election approaches, Labour and the Conservatives are intensifying their debate over housing policies, particularly focusing on support for first-time buyers and renters.
- The Conservatives pledge to permanently abolish stamp duty for first-time buyers purchasing properties up to £425,000.
- Labour counters by criticising the Conservative proposal as an unfunded commitment and pledges to protect tenants through measures like banning no-fault evictions.
- Analysts note the impact of the proposed policies on various segments of the housing market, particularly first-time buyers in different regions.
- Both parties also emphasise their strategies to address broader housing issues, including building new homes and reforming planning rules.
Both major political parties accuse each other of failing to deliver on their housing promises, placing a significant focus on support for first-time buyers and tenants. The Conservatives have committed to abolishing stamp duty permanently for first-time buyers purchasing properties up to £425,000. This threshold, which was temporarily raised to support homebuyers, is currently set to revert to £300,000 in April next year.
Housing Secretary Michael Gove, who is not seeking re-election, underscored the Conservatives’ ‘clear plan’ to assist individuals in getting on the housing ladder. He asserted that Labour’s failure to match the Conservative plan would result in first-time buyers facing tax bills of up to £11,250.
In response, Labour leader Sir Keir Starmer defended his party’s stance, arguing that the current stamp duty strategy outlined in the Budget is fully financed. He dismissed the Conservative proposal as an unfunded promise. Analysts highlight that stamp duty is mainly paid by those acquiring larger homes or properties in more expensive areas.
According to the Office for National Statistics, the average house price for first-time buyers in Britain in April 2024 was £236,000, which would not incur any stamp duty under existing regulations. Labour has also concentrated on defending renters, promising immediate action to ban no-fault evictions, a step the Conservatives have also promised but have yet to actualise.
Labour aims to mandate that all rental homes achieve an Energy Performance Certificate rating of C by 2030, purportedly saving tenants an average of £250 per year. The Conservative housing strategy focuses on brownfield development for building new homes and maintaining the stamp duty exemption for first-time buyers purchasing properties up to £425,000.
Labour, conversely, plans to reform planning regulations, expedite development on brownfield and ‘grey belt’ land, extend mortgage support schemes, and bolster tenants’ rights. Other political parties have also outlined their housing policies, which vary in focus from increasing social housing to implementing rent controls and environmental standards for new builds.
The Liberal Democrats advocate for additional social housing, new ‘garden cities,’ and support for local authorities to end the ‘right to buy’ policy for council housing. Their plans include banning no-fault evictions, standardising three-year tenancies, and creating a national register of licensed landlords.
The Green Party proposes investing in new social housing, repurposing vacant properties, imposing higher environmental standards for new builds, and mandating more affordable units. They also support rent controls and an eviction ban.
The Scottish National Party has declared a national housing emergency, promising funding for new affordable homes across Scotland, including rural and island projects. Similarly, Plaid Cymru focuses on expanding social housing, backing the Welsh construction industry, and advocating for local authorities to buy back second homes and holiday lets.
Reform UK intends to expedite planning processes, offer tax incentives for brownfield development, provide tax breaks to small-scale landlords, and prioritise social housing for people born in the UK.
The clash between the main political parties over housing policy highlights differing approaches to supporting first-time buyers and tenants, with broader implications for the entire housing market.
