This month it was reported that house prices within England have fallen, with a -17% result compared to a -7% result in April. However, house prices in Scotland and Northern Ireland continue to show an upward trajectory. As for the rental market, tenant demand continues to grow with outbidding becoming a prominent feature in the sector.
Housing market reform
So, as we draw closer to the election period, many eyes are on the parties’ manifestos and whether or not any attention will be given to housing market reform. RICS chief executive, Justin Young spoke on the issue, saying:
“Despite an improving overall outlook, today’s data reveals that confidence in the housing market is beginning to dip – just as parties launch their manifestos. While both the Conservatives and Labour have staked their claims as being the party of home ownership, for that to be the case, greater attention must be paid to improving conditions for Generation Rent, who are faced with rising rents and a lack of suitable options.”
He went on to say:
“The housing market needs policies that think longer term, not short, and awareness that the different tenures are interlinked, so there is no one solution that will fix the situation. With the market under strain, the supply and demand gap in both lettings and buy side continues to create issues.”
With continuing impacts from the cost-of-living crisis paired with the housing market crisis, potential buyers and renters are not seeing many benefits.
Manifesto promises on housing
Now the manifestos of the major parties running have been published, we are able to see the actions they will take if elected to help reform housing within the UK. The BBC has published the key information which you can find below.
The promises cover everything from planning permission, to renters reform, to social housing, and brownfield sites. But whether or not the parties can deliver if elected is yet to be determined.
- The Conservatives would build homes, prioritising brownfield development. They would permanently waive stamp duty tax for first-time buyers of properties costing up to £425,000. This threshold was raised temporarily and is due to revert to £300,000 in March 2025.
- Labour would reform planning rules, fast-forward development on brownfield and what it calls “grey belt” land such as car parks. It wants to extend an existing scheme, which helps people get a mortgage with a smaller deposit and is backing more rights for renters.
- The Liberal Democrats want additional social housing and new “garden cities”. They support local authorities that want to end the “right to buy” policy for council housing, ban no-fault evictions, make three-year tenancies the default and create a national register of licensed landlords.
- The Green Party would invest in new social housing and bring empty properties back into use. They would set higher environmental standards for new builds and would require more affordable units. They support rent controls and an eviction ban.
- The Scottish National Party has declared a national housing emergency and is promising funding for new affordable homes across Scotland, including for rural and islands projects.
- Plaid Cymru would expand social housing and support the Welsh construction industry. The party would allow local authorities to buy back more second homes and holiday lets. They want a ban on no-fault evictions and rent controls.
- Reform would fast-track planning, offer tax incentives for development on brownfield sites and give tax breaks to small-scale landlords. People born in the UK would be given priority for social housing.
Can the next government fix the housing crisis?
You may read the above and think a mix of all statements is the best route, but some pledges may seem too short term. If there is a focus on longer term policies, we may start to see some change. Quick fixes will not work, the issue is much more complex.
Justin Young (RICS chief executive) also spoke on this: “there is no one solution that will fix the situation. With the market under strain, the supply and demand gap in both lettings and buy side continues to create issues.”
At the moment, most renters find it impossible to save for a house deposit while also trying to rent. As a renter myself, trying to save with a vision for long term is difficult. Rents are rising, bills are rising and then saving a suitable amount on top of this for a house deposit is often non-existent. Change is needed, living like this is unsustainable.
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