The Labour Party launched its manifesto in Manchester today promising to build 1.5 million new homes over the next parliament.
A Labour Government, said the manifesto, would also deliver the biggest increase in social and affordable house building in a generation.
Alongside that Labour pledged to bring in a mortgage guarantee scheme, and double the size of the mutual and co-operative sectors.
Other pledges in the manifesto would see a Labour Government commit to planning reforms, work with councils to stop first-time buyers from missing out on new-build UK property to overseas investors and abolish no-fault evictions.
Reaction
Robin Fieth, CEO of the Building Societies Association:
“We are delighted to see the Labour Party’s public commitment to double the size of the co-operative and mutual sector as a core part of its plans for growth.
“There are over 9,000 mutual and co-operatives in the UK, offering a competitive and purpose-driven alternative to shareholder-owned businesses. Their culture, behaviours and decisions differ because of their member ownership model. With no external shareholders to satisfy, they can take a long-term view, which can be reflected in their prices, products and services, leading to product innovation and a greater choice for the consumer.
“The Building Societies Association (BSA), along with Co-operatives UK, The Association of Financial Mutuals, and ABCUL, has been calling on the government to ensure legislative and regulatory policies support mutuals and co-operatives and create a level playing field with their plc competitors, enabling them to thrive long into the future.¹
“We hope whichever party is leading government on 5th July recognises the value the mutual and co-operative sector brings to our economy and local communities, and commits to doubling the sector within the next decade.”
John Phillips, CEO of Spicerhaart and Just Mortgages:
“As promised there were few surprises. Labour have pledged to build 1.5 million homes, to the Conservatives 1.6 million, aiming to build at least 150,000 affordable homes per year, with a focus on social housing and council homes.
“Given the government’s history of failing to meet housebuilding figures, it is encouraging to see Labour reinstate the mandatory house-building targets, it will be interesting to see how they implement “bulldozing” through planning rules to achieve this.
“While Labour appears committed to improving supply, there appear to be few practical steps to help first-time buyers get on the property ladder. Compared to the Conservatives’ reintroduction of the help-to-buy scheme or their pledge to abolish stamp duty, there seem to be few stimulants for affordability.
“Labour’s clear housing focus is on renters and supply, but questions remain about affordability and whether or not these pledges can stem the bleeding in the spluttering housing sector.”
Tom Darling, campaign manager of the Renters’ Reform Coalition:
“England’s renting crisis is spiralling out of control, with record levels of homelessness and unaffordable rents pricing people out of communities. After failure in the previous parliament, now more than ever, the country needs ambitious action and a serious package of reform to tackle the crisis – tinkering around the edges won’t suffice.
“To be clear, we welcome Labour’s continued commitment to “immediately abolish” no fault evictions – a crucial first step to rebalance renters’ rights – as well as other proposals like extending Awaab’s Law to private renters. However, we have urged all parties they need to go much further for private renters. Preventing new evictions grounds being used as no-fault evictions, and limits on how much rent can be increased within a tenancy – only then will we have a system that offers renters real security in their own homes.”
Simon Brown, CEO of Landmark Information Group:
“We welcome the scale of Labour’s ambitions, but they have a job on their hands to quickly get to grips with the UK’s intricate and often highly fragmented planning system. Any planning decisions should be rooted in granular data to identify hotspots of consumer demand and any potential bottlenecks to development.
It’s encouraging to see a commitment from Labour – giving much-needed clarity of direction for the property industry and home-movers alike. However, there remain systemic issues with the home-moving process that could be quickly addressed to prevent weeks of stress and uncertainty.
“Our data shows that home moves still take 123 days on average to complete – with inefficiencies across the transaction chain, and leaving the property market susceptible to external shocks. Addressing this – with increased digitisation and information-sharing – would be the first step in creating a healthier property market that works for home-movers.”
Katie Pender, managing director of Target:
“Labour’s pledge to build 1.5m homes and prioritise brownfield sites for development are almost identical to those in the Conservative manifesto, although Labour has committed to reinstating mandatory housing targets for local authorities. But every Government in recent times has promised to build more homes and reform the planning system. Since 2019 at least, housebuilding targets have been missed.
“Meanwhile, first-time buyers are facing the toughest conditions seen in 70 years. Labour’s manifesto proposals do seem to offer this group some reasons for hope. Labour would give young people first dibs on new housing developments and help them get onto the property ladder by making permanent the comprehensive mortgage guarantee scheme for first-time buyers.
“The Labour manifesto is titled ‘Change’ and there is no doubt that the housing market urgently needs a genuine and fundamental overhaul. But the question is whether Labour’s changes go far enough or if this manifesto is playing it too safe.”
