Labour leader Sir Keir Starmer is set to become the next Prime Minister after Labour’s big win in the recent General Election. 

While we may not see the first Budget and fiscal update from the new government until September, Labour’s election manifesto gives us some clues about their housing plans. 

Home Building: 

Labour aims to build 1.5 million homes over the next five years, focusing on developing areas called the “grey belt”.

This goal is to ease the housing shortage and make it easier for first-time buyers and low-income families to buy homes. 

If successful, this increase in housing supply could help stabilize or even lower house prices over time.

For those looking to buy, especially first-time buyers, this could mean more opportunities to get onto the property ladder.

However, these changes will take time to be felt in the market. 

Stamp Duty: 

Labour might change the stamp duty rules for first-time buyers. In 2022, Rishi Sunak raised the stamp duty threshold to £425,000, promising to make this permanent if re-elected. However, Labour plans to let this threshold drop back to £300,000 after March 2025.  

To offset this, Labour’s ‘Freedom to Buy’ scheme aims to help 80,000 young people buy homes in the next five years while keeping mortgage rates low. 

Rental Market: 

Labour plans to abolish Section 21 ‘no fault’ evictions, which allow landlords to evict tenants with two months’ notice without giving a reason.

This move should give renters more security and could encourage long-term renting, changing the balance between renting and buying homes. 

Landlords may face new challenges due to this change, and there might be an increase in Section 21 notices before the ban is enacted. 

Labour 2024 Impact on the Housing Market

Labour’s victory could bring significant changes to the UK housing market. Increased housebuilding could address the housing shortage, but first-time buyers may still face challenges.

A potential base rate reduction could provide some relief for both prospective and current homeowners. 

Whatever the next few months throws at us, OneDome stays committed to helping you buy your dream home faster, simpler and cheaper… guaranteed! Click here to see how.