Election Special - The Housing Manifestos
Election Day is here and the country goes to the polls. There has been a great deal of scrutiny over what has been published by the political parties in order to sway voters to vote for them. Housing is one of the key points on all parties’ agenda and at the forefront of the minds of homeowners, investors both individual and institutional, first time buyer, landlords, tenants and those living within social housing accommodation.
Neither the Conservatives or Labour have put forward exactly how they’re going to solve all the obstacles that have stopped Governments hitting their housing targets over the last 30 years.
The following provides an easy guide to the main parties’ intentions :-
House-building - The intention is to deliver 1.6 million well-designed homes ‘in the right places while protecting our countryside, permanently’
Planning reform - Provide a fast-track planning route for new homes on previously developed land in the 20 largest cities. Councils to be required to set land aside for local and smaller builders.
Green belt - Retain a ‘cast-iron commitment’ to protect the Green Belt from uncontrolled development.
First time buyers - Make the temporary first time buyer Stamp Duty relief on homes up to £425,000 permanent. Introduce a new Help to Buy scheme. Will continue with the mortgage guarantee scheme.
Renting - After 5 years spent on the Renters Reform Bill , the Conservatives intend to pass the Bill and fully abolish Section 21 and strengthen other grounds for landlords to evict private tenants.
Energy efficiency - Invest £6 bn over the next 3 years to make around 1 million homes warmer. Funding of an energy efficiency voucher scheme, open to every household in England.
Building safety - Continue support for leaseholders affected by historic building safety problems.
Leaseholders - The process of leasehold reform will be continued, ground rents will be capped at £250, reducing them to peppercorn over time. The misuse of forfeiture will end and make it easier to take up commonhold.
Stamp duty - Will not increase stamp duty. Make the temporary first time buyer Stamp Duty relief on homes up to £425,000 permanent.
New towns - Raise density levels in inner London by ensuring the London Plan delivers more homes on brownfield sites.
Social and affordable housing - Renew the Affordable Homes Programme that will deliver homes of all tenures. Will legislate for new ‘Local Connection’ and ‘UK Connection’ tests for social housing in England.
Right to Buy - Will ensure Right to Buy discounts rise with inflation and fight any plan by local authorities to abolish the Right to Buy altogether
Capital Gains Tax - A two-year temporary Capital Gains Tax relief will be introduced for landlords who sell to their existing tenants.
Council tax - The number of council tax bands will not be increased.
Holiday Lets - Councils will be required to manage the uncontrolled holiday let industry
Homelessness - Plans to prevent people from ending up on the streets will continue
House-building - Restore mandatory house-building targets immediately. Pledge to build 1.5 million new homes during term.
Planning reform - Take tough action to ensure planning authorities have up-to-date Local Plans and strengthen the presumption in favour of sustainable development. Fund additional planning officers.
Green belt - Will take a brownfield-first approach. Committed to the green belt and will take a strategic approach.
First time buyers - Launch of a permanent mortgage guarantee scheme. First time buyers will get chance to buy homes before international investors.
Renting - Will overhaul the regulation of private rented sector and immediately abolish Section 21 ‘no fault’ evictions, empower them to challenge unreasonable rent increases, and raise standards.
Energy efficiency - Plan to double investment (an extra £6.6 bn) to upgrade 5 million homes. The Warm Homes Plan will offer grants and low interest loans for insulation, solar panels, batteries and low carbon heating to cut bills.
Building safety - Will take “decisive action” to improve building safety through new regulation.
Leaseholders - Will enact Law Commission proposals on leasehold enfranchisement, right to manage and commonhold. Will ban new leasehold flats and ensure commonhold is the default tenure. Promises to review how to better protect leaseholders, including tackling unregulated and “unaffordable” ground rent charges.
Stamp duty - Will increase the rate of the stamp duty surcharge paid by non-UK residents
New towns - Will build a ‘new generation of new towns’
Social and affordable housing - Will deliver the biggest increase in social and affordable housebuilding in a generation.
Right to Buy - Will review the increased Right to Buy discounts introduced in 2012
Capital Gains Tax - Will not introduce capital gains tax on private homes, but will close the loophole “where private equity is the only industry where performance related pay is treated as capital gains.
Homelessness - Will develop a new cross-government strategy, working with Mayors and Councils across the country, to put Britain back on track to ending homelessness.
Liberal Democrats and housing
The Lib Democrat manifesto has a target of 380,000 new homes a year, including 150,000 social homes, delivered via ten ‘new garden cities’ and community-led developments.
Pledges in their manifesto also include:
Introducing a Rent to Own model for social housing
Abolishing leasehold and cap ground rents at a ‘nominal fee’
Promising “a fair deal for renters”, with an immediate ban on no-fault eviction.
Green Party and housing
The Green Party say their ‘Right Homes, Right Place, Right Price Charter’ will simultaneously protect green space for communities, reduce climate emissions, tackle fuel poverty and provide genuinely affordable housing. As with all the political parties there is little detail on how this will be achieved.
They also:
Pledge to provide 150,000 new social homes every year
Push for a retrofit programme to insulate our homes.
Offer a Fair Deal for Renters, including pushing for rent controls.
Reform UK
Reform UK says it will “ensure that people can own their own home by unleashing housebuilding across the country and cutting immigration”. While there is a lack of information about any housebuilding targets, Reform say they will start with a review of the planning system to fast-track planning and tax incentives for development of brownfield sites and with a ‘loose fit planning’ policy for large residential developments.
They also say they will reform social housing law and prioritise local people and those who have paid into
the system saying “Foreign nationals must go to the back of the queue. Not the front”.
We support their proposed cut to residential stamp duty which will see stamp duty applied as follows:
0% below £750k
2% from £750k – £1.5m
and 4% over £1.5m.