With a decisive election victory for Labour, significant changes are on the horizon for the UK housing market. As the nation anticipates the Autumn Budget on 30 October, Housing Secretary Angela Rayner has already unveiled the draft of the National Planning Policy Framework (NPPF), now open for consultation until September.
Increasing Housing Delivery
Labour’s manifesto promises the construction of 1.5 million new homes over the next Parliament. To achieve this, Rayner announced an increase in the national housing target to 370,000 new homes per year, up from 300,000. Local authorities are expected to boost delivery, and some councils may need to build on lower-quality green belt sites to meet these ambitious goals.
Adjusting Housing Calculations
The government has revised how the required number of houses is calculated for each area. The new method mandates local authorities to plan for homes proportional to the size of existing communities, with additional requirements where house prices are disproportionately high compared to local incomes.
Lower Targets for London
London’s housing target has been reduced from 100,000 to 80,000 new homes annually—a substantial goal given that only around 35,000 new homes were delivered in the capital last year.
Focus on Affordable Housing
Labour has committed to a significant expansion in social and affordable housing, with a target that at least 50% of developments on green belt land will be affordable homes.
Government Schemes and Support
While specific plans for housing schemes are yet to be disclosed, Labour had promised to extend the Conservative’s Help to Buy scheme under the new name “Freedom to Buy,” aiming to help 80,000 young people get on the property ladder. This could include encouraging lenders to offer more mortgages to those unable to afford large deposits.
Review of Right to Buy
The Labour government is expected to review the Right to Buy scheme, which allows council tenants to purchase their homes at a discount. Labour might tighten eligibility to ensure that newly built social homes are not sold off.
Preparing for Change
With the new NPPF arriving in September and the Autumn Budget following in October, significant shifts in housing policy are imminent. Whether you’re a first-time buyer or looking to move within the property market, we are here to help you navigate these changes and achieve your property goals.
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