As we approach the 2024 General Election and polling day – and if you’re not already sick of it – it’s important not to forget just how important housing is within the country. In fact, you can fairly argue it is one of the most pressing issues for the UK electorate.
Yet, an examination of the housing policies presented in the manifestos of the major political parties reveals a surprising neglect of substantial, actionable solutions to the housing crisis. Despite public outcry on the lack of affordable homes being built for decades, both the Conservative and Labour Party have fallen short in their strategies for expanding the housing stock and easing the current pressure on the market.
The Conservative Party’s manifesto promises to reintroduce the Help to Buy scheme, a policy that paradoxically they allowed to lapse just last year. Originally launched in 2013, Help to Buy was aimed at assisting first-time buyers in purchasing new-build homes through equity loans. However, this scheme has faced criticism for inflating property prices rather than addressing the core issue: the lack of housing supply.
The revival of Help to Buy is still somewhat puzzling, though. Critics argue that merely reinstating the policy will not resolve the deeper problems within the housing market. The initial scheme focused heavily on city-centre apartments, which often didn’t meet the needs of families looking for more spacious homes.
For a revised version of Help to Buy to be effective, it must prioritise the construction of family homes rather than urban apartments, and include provisions that prevent a repeat of the inflationary impact seen in its previous iteration.
Moreover, the Conservative manifesto includes a commitment to building 300,000 homes a year. This target is ambitious, especially considering the party’s historical struggle to meet such numbers. Last year, the UK saw only around 170,000 new homes completed, far short of the stated goals. To achieve their target, the Conservatives need to address significant barriers such as planning regulations, skills shortages in construction, and the high costs of building materials.
In contrast, the Labour Party’s manifesto takes a more expansive approach to the housing crisis, likely because they are currently ahead in the opinion polls and look currently odds-on to form the next Government. Labour pledges to construct 1.5 million homes over the next five years. This translates to an average of 300,000 homes annually, aligning with the Conservative target but within, what might be seen as, a more comprehensive framework of broader reforms.
Labour’s plan focuses on a significant expansion of social and council housing. This commitment reflects a shift towards addressing long-term affordability and housing security. They propose to ensure that half of these new homes are social housing, with the remainder including a mix of affordable home ownership and rental options.
If Labour can follow through on this commitment, it could substantially alleviate the housing shortage and provide more stable options for those currently priced out of the market. It is however a big ‘if’.
Labour’s target of 1.5 million new homes also raises questions about feasibility. Achieving it would require overcoming similar obstacles to those faced by the Conservatives: streamlining the planning processes, increased investment in construction training, and securing funding. Furthermore, to ensure these homes meet the needs of prospective buyers, the Labour Party must avoid the pitfalls of previous schemes that focused disproportionately on urban, high-density builds.
Both parties face a monumental task in addressing the huge housing supply disparity we have in the country. As mortgage advisers, it is crucial to understand that simply reintroducing schemes like Help to Buy or setting ambitious building targets is still probably not going to be enough. Effective policies must be holistic, targeting not just the quantity but the quality and suitability of housing.
Key to both parties’ success will be reforming the planning system to make it more efficient and responsive to the needs of local communities. Streamlining planning regulations can accelerate the construction process and reduce costs, making it more feasible to meet those higher building targets.
Both parties need to invest in training and development within the construction industry to address the current skills shortages. Without a skilled workforce, any ambitious housebuilding targets will remain aspirational rather than achievable.
Finally, housing policies should incentivise a diverse range of housing types, including family homes in suburban areas and affordable rental options, not just apartments in city centres. This approach would better align with the needs of families and individuals seeking stability and space outside those areas.
To be positive, the 2024 manifestos of both the Conservative and Labour parties do reflect a renewed focus on housing, yet you might well argue that we’ve heard it all before. It is perhaps no wonder that some influential voices are calling for housing, particularly house building, to be taken out of the party political context and that we have a Housing Commission which is cross-party and has a long-term plan covering decades not just the next Parliament.
For mortgage advisers and industry professionals, it is essential to advocate for policies that address the root causes of the housing crisis. This includes ensuring that new homes are suitable for families, reforming planning processes, and supporting a skilled construction workforce.
Only through such integrated approaches can the UK hope to resolve its housing shortage and provide affordable, sustainable housing for all. What we do know is that nothing is going to happen overnight, but we need a shift and we need it fast.
Rory Joseph and Sebastian Murphy are group directors at JLM Mortgage Services
