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As predicted, Labour was victorious in the General Election and we now enter into a period of adjustment where a new Parliament shapes our property market. Open Property Group closely monitored Labour’s manifestos and announcements ahead of the election, and we’ve noted a number of property announcements since 4th July.

We have compiled this ‘early days’ guide to Labour and the housing market, which may help you plan the sale of a property you live in or rent out. Here are 8 things you need to know:

  1. There are four new ministers in charge of property: a fresh Parliament has been assembled and here are the people in the positions of property power. As well as the Prime Minister, Sir Keir Starmer, those setting the course of how we buy, sell and invest in property are Angela Rayner, Housing Secretary and Deputy Prime Minister, Rachel Reeves, Chancellor, and Matthew Pennycook, the Minister Of State for Housing and Communities.
  2. Expect more details on 17th July: the State Opening of Parliament on 17th July is when Labour will feel totally in control of the country. An essential part of the ceremony is the King’s Speech. King Charles III will read out details of the Government’s proposed policies and legislation for the coming parliamentary session. Open Property Group expects a rehashed Renters’ Reform Bill to be back on the table.
  3. Section 21s were not banned on the spot: Angela Rayner publicly declared she would ban Section 21 evictions immediately if Labour won the election but although this statement made the headlines, she admitted in an interview to LBC Radio that the court system would need reform. As such, landlords are still free to serve ‘no fault’ evictions at the moment. How soon a ban may come into effect is worryingly uncertain and you may need to sell your house quickly in order to beat any quick-fire legislative changes.
  4. Renters’ Reform Bill set to be a priority: Labour has two choices concerning the Renters’ Reform Bill. It could push it towards Royal Assent by making no changes to the contents – a move that will see it become law quicker – or it could make amendments that will reflect its manifesto, adding time to the process.
  5. New reforms will radically change the PRS: having listened to Labour in the build-up to the election, and having read the party’s manifesto, we think the second option outlined above is most likely, as a number of the following were not included in the Conservative’s Bill.

Labour has already voiced its support for extending Awaab’s Law to the PRS (private rental sector); changing the EPC standard in buy-to-lets, with the minimum requirement rising to C; granting renters more rights to challenge unreasonable rent increases; limiting the value of upfront rent tenants pay to secure a property; banning tenants being pitted against each other to bid on rentals; making it easier for renters to keep pets; forcing landlords to give tenants longer notice periods, introducing a mandatory landlords’ register and extending the Decent Homes Standard from social housing to the PRS.

  1. The Leasehold & Freehold Reform Act will take effect: although this Bill became an Act in the ‘wash up’ period before the previous Parliament was dissolved, it is now up to Labour to enforce its contents. A phased introduction is expected and we await a timeline.
  2. First-time buyers have been dealt a setback: despite the Prime Minister championing homeownership, his actions have spoken louder than words. A Labour party spokesperson has confirmed the Government will not continue the first-time buyer stamp duty discount when it ends next year. Currently, those buying their first home do not pay any stamp duty if the value of the property is £425,000 or less. This perk will end in March 2025 when the threshold will decrease to £300,000, leaving first-time buyers with a more expensive tax bill. From experience, we know a lack of first-time buyers can slow down sales in the property market.

As a counter move, the Prime Minister did confirm the current mortgage guarantee scheme, which allows purchasers with low-value deposits to secure a mortgage, would become a permanent initiative called ‘Freedom to Buy’.

  1. The country could be awash with new homes: the new Chancellor set her stall out by promising the party would deliver 1.5 million homes during the course of Labour’s tenure. Included in her plan is the use of some poor quality green belt land for building, a reform of the planning process and the hiring of more planning officers.

As national homebuyers, Open Property Group can offer advice in light of the new Labour Government. If you’re in a chain and are worried it may collapse, are hesitant about selling or want to exit buy-to-let fast and sell tenanted property, please contact us.

Published on 15th July 2024, rewritten for 2025

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