General Election 2019: What will this mean for the housing market?
The main UK political parties are gearing up for the 2019 General Election on 12th December. The outcome of the general election will decide the next Prime Minister and the Government to run the country.
We have looked into each of the main parties’ proposed housing policy changes and provided an overview of their manifestos.
The Conservative Party
- Encourage long-term fixed rate mortgages which reduce the cost of deposits to support a path to home ownership for first-time buyers, and to extend the Help-to-Buy scheme from 2021 – 2023.
- Maintain their commitment to Right-to-Buy for all council tenants and maintain the voluntary Right-to-Buy scheme agreed with housing associations
- Continue with their planned reforms to leaseholds; including a ban on the sale of new leasehold homes, restricting ground rents, and providing necessary mechanisms of redress for tenants.
- End of “no fault” evictions, strengthening the rights of possession for “good” landlords.
- Introduce “lifetime” deposits, which move with the tenant, if and when they move properties
- Introduce a 3% surcharge on non-UK resident property buyers, which will be used to fund new housing programmes and initiatives to reduce homelessness.
You can learn more about The Conservative Party’s manifesto here.
The Labour Party
- Introduce a new social house-building programme, building at an annual rate of at least 150,000 council and social homes by the end of parliament.
- Build more low-cost homes for first-time buyers in every area, including new discount home with prices linked to local incomes. Reforms to Help-to-Buy so there is focus on first-time buyers on “ordinary” incomes.
- Introduce a levy (circa. 20%) on overseas companies buying properties in the UK.
- End the sale of new leasehold properties, abolish unfair fees and conditions, and give leaseholders the right to buy their freehold at an affordable price.
- Introduce a zero-carbon standard for all new homes and upgrade existing home to make them more energy efficient.
- Introduce rent caps which are in line with inflation, and provide cities with powers to cap rents further.
- Introduce new open-ended tenancies and stop “no fault” evictions.
- Ensure every rental property meets new minimum standards, enforced through nationwide licensing and tougher sanctions for landlords who continuously fail to meet these standards.
- Fund new renters’ unions throughout the country.
- End “discriminatory rules” that require landlords to check people’s immigration status (Right-to-Rent checks) or that allow them to exclude people on housing benefit.
- Give councils new powers to regulate short-term let through companies such as Airbnb.
You can find out more about the Labour Party’s manifesto here.
The Liberal Democrats
- Build at least 100,000 homes for social rent each year and ensure that total housebuilding increases to 300,000 each year.
- Increase minimum energy efficiency standards for privately rented properties and remove the cost cap on improvements.
- Graduate Stamp Duty Land Tax by the energy rating of the property.
- Devolve full control of Right-to-Buy to local councils.
- Establish a new Help-to-Rent scheme to provide government-backed tenancy deposit loans for all first-time renters under 30.
- Promote longer tenancies of three years or more with an inflation-linked annual rent increases built-in.
- Improve protections against “rogue landlords” through mandatory licensing.
You can find out more about the Liberal Democrats manifesto here.
For the purposes of this blog we have not included the proposed housing policies from the SNP (Scottish National Party) as we do not currently operate in Scotland. We will keep all of our clients, landlords and tenants, updated with any forthcoming legislative changes that may arise as a result of the 2019 General Election.
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