General Election 2024 Result – Thoughts from the Industry
With Labour winning the General Election, here are some thoughts from within the property industry.
Mark Chick, director of ALEP (the Association of Leasehold Enfranchisement Practitioners)
“So now that we know the size of the Labour majority it seems a fairly safe bet that the next five years will see a more vigorous programme of reform in the residential leasehold sector.
During the next five years we are likely to see the acceleration of commonhold and possibly legislation to end or put a sunset date on leasehold for new properties.
It will be interesting to see what Labour chooses to do with the Commonhold project and I expect we will now find out what other drafting has been done by DLUHC in relation to the law commission’s original reports and recommendations.
In addition we can presumably expect the current reforms in the Leasehold and Freehold Reform Act 2024 to be brought into effect and the question now turns to the timing of these and secondary legislation.
ALEP remains ready to engage with government and we look forward to meeting with the new Secretary of State for Housing and Ministers to continue our programme of engagement to help ensure that any new legislation is fit for purpose.”
Guy Gittins, CEO of Foxtons
“This morning’s news of Labour’s victory in the election should prove positive for the London sales market.
“Labour’s manifesto demonstrated a strong focus on business and economic growth, which is very promising. This focus, together with improving inflation figures and an anticipated rate cut later in the summer, should give both buyers and sellers confidence and result in good levels of activity in the market for the rest of the year.”
Kevin Shaw, National Sales Managing Director at Leaders Romans Group
“Labour’s landslide election victory this morning came as no surprise and so we don’t anticipate shockwaves in the property market.
Historically sales tended to slow when general elections were called and would pick up soon afterwards. But there’s little evidence of that: our applicant registration figures have risen quite considerably both on the previous half year and year-on-year.
What we do expect is more certainty in the property market. We expect anyone who has delayed selling because of the general election to put their property on the market in advance of the summer holiday season and with a view to being established in a new home before Christmas.
Mortgage swap rates are down and we expect the Bank of England to finally reduce interest rates by at least 0.25% on 1 August. Both factors will provide a significant further boost.
The unknowns are potential changes to Capital Gains Tax and Inheritance Tax which could have a direct bearing on the market. But fears of tax increases should provide an incentive for sales to take place sooner rather than later.
It’s not typical for the property industry to welcome a more left-wing administration, but Keir Starmer’s team has gone to considerable lengths to win business support while also promising not to hike taxes. And so the sentiment here at LRG is a positive one and we look forward to our sales trajectory continuing upwards.
Brian Berry, Chief Executive of the Federation of Master Builders (FMB)
“The election of the new Labour Government offers a fresh start to get Britain building. Labour’s pledge to build 1.5 million new houses over the next five years, and upgrade five million existing homes, are ambitious targets but very much needed if the growing housing crisis is to be addressed. The success of Labour’s housing targets will very much depend on two key issues being addressed. First, the need to reform the planning system to make it easier and quicker to build. Secondly, the urgent need to tackle the skills crisis ensuring we have enough skilled workers in the construction industry to build the homes needed.”
“For too long local authority planning departments have been underfunded with the result that planning applications have been held up. Additional funding for planning departments offers hope that the planning process will speed up to deliver the homes that are needed. A long-term training and skills plan to tackle the shortage of construction workers is desperately needed, as is the need for some form of minimum competency level for builders to ensure quality homes are built, and the ones we have are upgraded to the best standards.”
“The FMB will work closely with the new Government to help ensure its housing pledges are delivered, and that Britain’s builders can play their part to boost much needed economic growth.”
Robin Rathore, CEO Bamboo Auctions
“While we were certain about a Labour election victory, we’ve been fairly uncertain about how they will help solve some of the systemic problems in the housing and property market, so the first 100 days of government will be crucial in setting out how serious Labour is about change and progress in the sector.
“We know that Labour want to build 1.5m new homes, we know they are committed to removing no fault evictions and we know that Labour will let the 0% SDLT threshold for first time buyers fall back to £300k from £425k.
“Whether you agree with these policies or not, at least the property sector now has clarity of vision and certainty of direction for the country for at least the next five years. This will create more stability, more confidence and ultimately more liquidity in the property market. At Bamboo, we’re looking forward to helping our agent partners take advantage of improving market conditions with our technology and customer success.”
Robert Poole, Director at Glide Property Management part of Leaders Romans Group
“As we welcome the new Labour government, it is crucial to acknowledge the strides made and the challenges that lie ahead in the property management sector. The recent laws have alleviated some of the burdens on leaseholders, particularly with cladding issues post-Grenfell. However, the process of developer-funded remediation for mid- and high-rise buildings remains problematic. Despite the commitment of developers, the timeline for remediation is fraught with delays, impacting over 12,000 high-rise blocks across the UK. The new government must ensure that developers adhere to set timescales to prevent indefinite delays and ensure the safety of residents.
“Developers often approach these remediation projects under public and shareholder pressure, which can lead to either rushed deadlines or cost-cutting measures that compromise safety. It is imperative that we avoid another race to the bottom, particularly in critical areas like fire safety.
“Labour’s manifesto commitments to leasehold reform, such as capping ground rents and gradually reducing them to a peppercorn, raise significant concerns. While intended to protect leaseholders, these measures could lead to unintended consequences, including increased costs for property management and a potential decline in the quality of service provided to residents. The focus should instead be on ensuring fair practices and reasonable costs without undermining the viability of property management services. We strongly urge the new Government to swiftly introduce regulations for Managing Agents to eliminate those who cut corners in their services to leaseholders, thereby improving standards and professionalism.
“As these reforms progress, it is essential that a balanced approach is taken. Consultation with practitioners, leaseholders, and freeholders is necessary to ensure that changes are both fair and practical, addressing the needs of all stakeholders without compromising the integrity of the property management system.”
Allison Thompson, National Lettings Managing Director, Leaders Romans Group
“Labour’s victory in the general election marks a significant turning point for the private rented sector (PRS). With their ambitious plans for housing reform, it is crucial that the new government addresses the pressing issues facing both landlords and tenants.
“Firstly, fiscal reform must be a priority. The current tax regime has already driven too many landlords out of the PRS due to increased taxes and additional regulations. Property lets are the only businesses in the UK that do not have taxes offset. To ensure a stable and thriving rental market, taxation must be reassessed to level the playing field.
“Secondly, the role of the PRS in addressing homelessness cannot be overstated. With a growing deficit in affordable homes, the PRS is pivotal in providing homes for those in need. Labour must shift its focus from penalising rogue landlords to supporting and encouraging fair and honest landlords who contribute positively to the housing sector.
“Energy efficiency demands are another critical area that requires clarity. Landlords need a realistic and manageable timeframe for implementing energy efficiency improvements, considering the associated costs and rental voids. Clear guidelines and reasonable expectations are essential for the long-term sustainability of the sector.
“The failure to pass the Renters (Reform) Bill was a setback, highlighting the need for comprehensive housing policies that provide stability and address the critical issues in the sector. Labour’s promise of 1.5 million homes over the next parliament is ambitious, and while it is promising to see a focus on housing build programmes, the undersupply in the PRS during this period must also be addressed.
“Finally, clear commitments on Capital Gains Tax (CGT) will provide homeowners with the certainty they need to plan their futures without fear of sudden policy changes.
“We urge the new government to place housing at the heart of its agenda, providing the consistency and long-term focus that the sector desperately needs. The private rented sector is integral to solving the housing crisis, and we look forward to working with Labour to ensure that all aspects of the housing market are effectively addressed.”
Sam Lindsay, Mortgage Planning Advisor, My Mortgage Angel
“When the news of the snap election came, many homeowners and aspiring movers took a wait and see approach to see if the new government would bring some stability to the market. Now the results are in, the industry remains optimistic that this will bring the stability and optimism needed.
“The reality is that the property market is largely driven by interest rates, capital growth and house prices. Time will tell us a lot but the reality is the housing market desperately needs some impetus. The new Government needs to make some changes to get the market picking up pace again, and it needs to make those changes sooner rather than later. Changes to stamp duty would be welcomed, greater initiatives for both buyers and sellers alike and bringing a helping hand back to first time buyers would be a great place to start.”
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