First-time buyers, the broader housing market and setting a distinct course from the previous policies
As the UK enters a new era following a Labour government victory during the July 4 general election, what do we know about Labour’s approach to the future of housing and mortgages under a government led by Prime Minister Starmer?
House prices have been on a seemingly never-ending treadmill, perpetually rising higher. Amidst these growing concerns over affordability and access to housing, Mr Starmer says Labour aims to address the pressing needs of first-time buyers and the broader housing market, setting a distinct course from the previous Conservative government’s policies.
With housing affordability at the forefront of the nation’s minds, many are asking what Labour will do about housing now that they are in power.
Labour government plans for housing
Labour’s plans encompass three significant areas: making rent prices more affordable, granting first-time buyers an exclusive six-month opportunity to buy new-build properties, and restricting developers from selling more than 50% of properties to overseas buyers.
This three-pronged approach ensures that high rent costs do not excessively burden first-time buyers, allowing them to save for a deposit to purchase a home. By providing a dedicated time window, Labour aims to enable first-time buyers to purchase new builds without facing competition from potentially wealthier domestic or international buyers.
Addressing housing affordability
Labour’s policy of restricting sales to foreign buyers aims to prevent overseas investors from dominating the housing market. This can drive up property prices and make it more challenging for local buyers to secure homes. This measure seeks to prioritise UK residents in the housing market.
Additionally, Labour has articulated its commitment to making housing more environmentally friendly. The new government intends to tackle climate-related issues in the housing sector over the coming decade.
Labour’s eco homes initiative
Labour’s housing agenda extends beyond first-time buyers to include plans for eco-friendly homes. They intend to allocate £6 billion over ten years to retrofit homes to achieve a minimum standard of EPC band C. This initiative will involve offering grants to low-income households and providing other households with the option of low-interest loans.
Based on pre-price cap increase estimates, Labour says these retrofitting measures are projected to save households at least £400 per year on energy bills. By improving energy efficiency, they aim to reduce the environmental impact of housing while also alleviating some financial pressures on homeowners.
A housing market accessible and equitable for all
As the Labour government embarks on its housing and mortgage policies, affordability and sustainability are central to its agenda. By focusing on first-time buyers, controlling overseas property purchases, and promoting eco-friendly homes, Prime Minister Starmer says he aims to establish a housing market that is both accessible and equitable for all.
Are you looking for the right mortgage deal?
Please get in touch with us if you require further information or have any questions about finding the right mortgage. Get in touch today, our team of experts are always on hand to help.
Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
