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According to exit polls published last night, the Labour Party won the general election in a landslide victory.
Sir Keir Starmer’s party is set to secure victory with an estimated 410 seats, according to an Ipsos UK poll for BBC/ITV News/Sky News, giving it a majority of 170 seats overall.
The Conservative Party, by contrast, is predicted to win just 131 seats this time, compared to the 365 it won in the 2019 election.
Industry response:
Nathan Emerson, CEO of Propertymark, commented: “Propertymark welcomes wider engagement with the New Labour government to lead an objective way forward for the housing sector. For many years we have seen a chronic undersupply of affordable new homes.
“Sustainable housing is the foundation of any strong economy and we need a clear, well-thought-out plan to stimulate investment and drive supply forward. We look forward to long-term, bipartisan collaboration that delivers the right kind of housing to areas where it is desperately needed.”
Matt Thompson, Director of Sales Chesterton said: “Labour’s announcement to reduce the stamp duty threshold for first-time home buyers from £425,000 to £300,000 in April 2025 is raising doubts about whether the party will introduce major initiatives to make buying a home easier. Home buyers will be hoping Labour will fulfil its promise to introduce a ‘freedom to buy’ scheme, but they are concerned that it continues to be difficult to buy a first home.
“Labour’s plans to increase the already high stamp duty rate on residential property purchases by expatriates by 1% are unlikely to have a major impact on London’s property market. The capital remains a cosmopolitan city and people will simply adapt their property hunt by lowering their budget or buying in parts of the city where they can command higher prices.”
Nigel Bishop, of Recoco Property Search, said: “Labour’s manifesto promises to improve the UK housing market and the party will be under huge pressure to deliver. One of the promises was to build 1.5 million homes, but I would like to know more about Labour’s plans to utilise ‘poor quality’ Green Belt areas, which will likely spark protests from some local people and groups.”
“Labour’s promised policy of imposing VAT on school fees is seen as one of the party’s most controversial policies. This will inevitably have an impact on the property market by preventing many parents from attending private schools and increasing demand for properties close to good state schools. Properties in these areas can already command a 20% premium and a politically motivated increase in demand for these homes will create an even more competitive market for buyers.”
“We’ve already seen potential homebuyers who took a break to monitor the political situation ahead of the general election resume their home hunt. With political parties now elected and economists predicting interest rates will be cut in the coming months, we expect even more buyers to follow suit.”
Joe Davies, Principal and UK Executive Chairman at Avison Young, said: “The proposed planning reforms aim to reinvigorate residential construction with a housing recovery plan and we are committed to rapid implementation. It is important to balance residential growth in urban brownfield and grey belt areas whilst creating high quality, resilient places to meet the needs of industry and the economy. Last mile logistics are becoming increasingly important yet industrial projects often get outshone by housing on the outskirts of cities. To effectively respond to modern consumer demand, strategic planning that integrates housing with necessary infrastructure such as retail, logistics, health and power priority requirements is essential.
“Transport infrastructure is crucial to support growth, but planning delays and power supply challenges are hindering industrial development. These delays affect local economies and job creation, and highlight the need for streamlined processes and improved energy strategies, such as greater use of solar power on factory rooftops and wind farms. Addressing these challenges is essential to ensure sustainable and balanced development under the new planning reform agenda.”
Mark von Grundherr, Director at Benham & Reeves, commented: “Although Labour is expected to win this election in a landslide victory, the areas with the most buyer activity across key political strongholds are those currently held by the Liberal Democrats.
“The good news is that regardless of where you’re looking to sell your home, market activity is generally on the rise and has continued to be that way since the start of the year.
“We can only expect this momentum to strengthen throughout the remainder of the year as the election dust settles and the prospect of interest rate cuts looms.”
Adam Jennings, Head of Rental Chesterton states: “On the first day of the new government, Labour promised to abolish ‘no-fault’ evictions under Section 21. Tenants will have seen this as one of the strongest promises in the party’s manifesto. Many were left wondering whether Section 21 would be abolished anytime soon, particularly after the decision to call a general election and the death of the Tenancy Reform Bill.”
Nick Walkley, principal and UK president at Avison Young, added: “Labour’s housing plan sets an ambitious target of building 1.5 million new homes each year, with a focus on 90,000 affordable or social homes. To make land buildable and increase affordable housing, Labour needs to revamp its approach to land value capture, and this will require collaboration between local authorities and stakeholders.”
“Large housing projects take time, even if everyone agrees. Labour wants to speed things up by streamlining the way funding is approved, particularly by involving private companies. We also want to make compulsory purchase orders quicker and easier so construction can start sooner. It’s a tightrope walk. Labour wants to solve the housing crisis quickly, but large projects are always going to be subject to delays.”
What does the property industry expect from a Labour government?