UK General Election 2024: What it means for housing

Housing supply

• Commitment to delivering 1.6 million homes in England through the next Parliament.
• Abolishing the legacy EU ‘nutrient neutrality’ rules to immediately unlock the building of 100,000 new homes with local consent, with developers required in law to pay a one-off mitigation fee so there is no net additional pollution.
• Delivering a record number of homes each year on brownfield land in urban areas by providing a fast-track route through the planning system for new homes on previously developed land in the 20 largest cities.
• Strong design codes will ensure this enables the gentle densification of urban areas, with new family homes and mansion blocks on tree-lined streets built in the local character.
• Supporting local and smaller builders by requiring councils to set land aside for them and lifting Section 106 burdens on smaller sites.
• Ensuring local authorities use the new Infrastructure Levy to deliver the GP surgeries, roads and other local infrastructure needed to support homes.
• Renewing the Affordable Homes Programme that will deliver homes of all tenures and focus on regenerating and improving housing estates.
• Ensure councils have the powers they need to manage the uncontrolled growth of holiday lets, which can cause nuisance to local residents and a hollowing out of communities.

Homeownership

• Increase the threshold at which first-time buyers pay Stamp Duty to £425,000 from £300,000 permanently.
• Introduce a two-year temporary Capital Gains Tax relief for landlords who sell to their existing tenants.

Energy efficiency & decarbonisation

• Invest £6 billion over the next three years to improve the warmth of homes.
• Introduce an energy efficiency voucher scheme, available for all English households to support installing energy efficiency measures and solar panels.

Renters

• New ‘Local Connection’ and ‘UK Connection’ tests for social housing in England, to ensure this valuable but limited resource is allocated fairly. Implement a ‘three strikes and you’re out’ expectation of social housing landlords for anti-social behaviour. They will be expected to evict tenants whose behaviour is disruptive to neighbours and the local community.
• Pass a Renters Reform Bill that will deliver fairness in the rental market for landlords and renters alike. They will deliver court reforms necessary to fully abolish Section 21 and strengthen other grounds for landlords to evict private tenants guilty of anti-social behaviour.

Leasehold reform

• Complete the process of leasehold reform, including a cap ground rents at £250, reducing them to peppercorn over time. We will end the misuse of forfeiture so leaseholders don’t lose their property and capital unfairly and make it easier to take up commonhold.
• Support for leaseholders affected by historic building safety problems by requiring the continuation of developer-funded remediation programmes for mid- and high-rise buildings.

RICS analysis

Since 2010, 2.4 million new homes have been delivered, and the announcement by the Conservatives to build an additional 1.6 million over the next government term is ambitious. That equates to over 300,000 new homes a year – a figure which hasn’t been achieved since the sixties, a period during which the public sector and SME housebuilders had a far greater role in housing delivery. And while it’s encouraging to see the Conservatives committing themselves to supporting small builders, this will not address the quagmire of laws that make up Britain’s restrictive, and politically permeated planning system.

Planning reform, which dominated much of the housing debate in recent years, features less than some might have expected, although various planning innovations have been announced already, including creating a super squad of planners. Proposals to scrap nutrient neutrality laws will support the unlocking of some developments stalled in planning – but this contrasts with the Conservative government’s announcement of £110 million last year to focus on mitigation works rather than simply removing environmental regulations.

A planned Renters Reform Bill is proposed to drive up standards and quality for tenants, with RICS previously engaging with the government to support the expansion of the Decent Homes Standard to the PRS. We also welcome the plans to reform Section 21 no-fault evictions but only once a modernised court system and greater strengths for landlords to evict anti-social tenants are implemented. The ability for renters to purchase their property with landlords receiving a temporary Capital Gains Tax relief will help support tenants ultimately take on ownership of their home – but at the same time, we also need to be encouraging the creation of more housing across tenure type and importantly, PRS homes, as we face a rental crisis.

Following the passing of the Leasehold & Freehold Reform Bill ahead of the election, RICS called for the next government to urgently respond to planned reforms to ground rent to give the market a sense of stability in knowing what is coming – and the Conservatives have now committed to capping ground rent at £250, reducing to a peppercorn over time.

For first-time buyers, a return of a form of Help to Buy scheme may seem an appealing prospect, but history has shown that similar policies that place an emphasis on newly built homes only, risk inflated house prices and while it gives confidence to developers, it can put pressure on developers to build fast to meet demand rather than focus on high-quality placemaking.  While we welcome any initiative that helps first-time buyers, the demand-side solutions must be combined with workable supply-side solutions. To begin improving affordability levels the UK must build more housing; there is currently a shortfall of 4.3 million homes in the UK by some estimates[1].  While a stamp duty cut would help in the short-term by enabling more buyers onto the first rung of the property ladder, it’s vital that we learn lessons from the past and introduce policies that address the plethora of structural issues that exist within house building.

£6 billion is proposed to focus on energy efficiency upgrades, as well as all households being eligible for a form of voucher scheme for energy improvements. While little detail has been announced on these plans, previous schemes fell short of their ambitions as incentives, without regulation, were not a strong enough motivation for many consumers. RICS is committed to supporting the creation of low-carbon, energy-efficient homes, having conducted significant research on the implication of environmental regulations and valuations, as well as recently launching the RICS Residential Retrofit Standard. Any future scheme that uses such a large amount of public funding for retrofitting must utilise professional advice, such as RICS, to ensure such spending is put to good use.

[1] https://www.centreforcities.org/press/four-million-uk-homes-missing-due-to-outdated-planning-laws/

Housing supply

• Increasing the building of new homes to 380,000 a year across the UK, including 150,000 social homes a year, through new garden cities and community-led development of cities and towns.
• Giving local authorities, including National Park Authorities, the power to end the Right to Buy in their areas.
• Expanding Neighbourhood Planning across England.
• Building ten new garden cities.
• Allowing councils to buy land for housing based on current use value rather than on a hope-value basis by reforming the Land Compensation Act 1961.
• Properly funding local planning departments to improve planning outcomes and ensure housing is not built in areas of high flood risk without adequate mitigation, by allowing local authorities to set their fees.
• Encouraging the use of rural exception sites to expand rural housing.
• Encouraging development of existing brownfield sites with financial incentives and ensuring that affordable and social housing is included in these projects.
• Introducing ‘use-it-or-lose-it’ planning permission for developers who refuse to build.
• Putting the construction sector on a sustainable footing by investing in skills, training and new technologies such as modern methods of construction.

Home ownership

• Give local authorities new powers to control second homes and short-term lets in their areas.

Energy efficacy & decarbonisation

• Launching an emergency Home Energy Upgrade programme, with free insulation and heat pumps for low-income households and a central role for local authorities in delivering this programme.
• Providing incentives for installing heat pumps that cover the real costs.
• Immediately requiring all new homes and non-domestic buildings to be built to a zero-carbon standard, including being fitted with solar panels, and progressively increasing standards as technology improves.

Renters

• Delivering a fair deal for renters by immediately banning no-fault evictions, making three-year tenancies the default, and creating a national register of licensed landlords.
• Reintroducing requirements for landlords to upgrade the energy efficiency of their properties to EPC C or above by 2028.
• Help people who cannot afford a deposit to own their own homes by introducing a new Rent to Own model for social housing where rent payments give tenants an increasing stake in the property, owning it outright after 30 years.
• Proactively enforcing clear standards for homes that are socially rented, including strict time limits for repairs.
• Fully recognising tenant panels so that renters have a voice in landlord governance.
• Leasehold reform
• Abolishing residential leaseholds and capping ground rents to a nominal fee, so that everyone has control over their property.
• Remove dangerous cladding from all buildings, while ensuring that leaseholders do not have to pay a penny towards it.

RICS analysis

Having publicly battled new home targets at their 2023 conference, and members ultimately voting over the Liberal Democrats leadership’s vision, the party have now committed to 380,000 new homes per year, of which, 150,000 will be social housing. RICS is glad to see the party have included details on how such targets will be delivered in the manifesto. 

Elements of their housing delivery strategy certainly give optimism for scaling up house building, including an emphasis on placemaking, reforming planning fees and resource systems, and changing building regulations to mandate low-carbon technologies. The party also announced the creation of ten new garden cities and pressure developers to ‘use it or lose it’ – although little evidence exists to say developers simply land bank. The Lib Dems also committed to increasing the national grid capacity through renewable technology. The current lack of grid capacity has been cited as a major blocker to new developments, so it is good to see progress to build up supply.

Other proposals to deliver their housing target are not unheard of, such as incentivising brownfield developments and ensuring local infrastructure is in place first. The party is putting an emphasis on local needs and engagement which could likely stall aspirations. Introducing rural exception sites that allow house building could easily become political as seen with LDP, but once approved, speed up the planning process.

Renters will welcome plans to remove Section 21 no-fault evictions, but this must be supported by reforms to the court process and stronger guidance for landlords to be able to evict anti-social tenants and those in long-term rent arrears.

RICS supports greater environmental and energy standards, but the sector must need sufficient time and resource to implement changes. That is why we are glad to see the manifesto propose greater minimum energy standards. Proposals to introduce EPC C minimum for landlords by 2028 must be supported by potential funding and advice services for landlords, otherwise we could simply see them sell the property – exacerbating the rental crisis and simply shifting the burden of improving the property onto other consumers.

The Home Energy Upgrade Programme for those low-income households can support the creation of more energy-efficient, affordable homes. However, to avoid unintended consequences of simply using a ‘one size fits all’ approach towards retrofitting, and to make sure the property and its occupiers don’t suffer from overheating, damp, mould or excessive Bills, the RICS Residential Retrofit Standard should be used to deliver professional advice.

Housing supply

• Get Britain building again, creating jobs across England, with 1.5 million new homes over the next parliament, including the creation of new towns.
• Labour will immediately update the National Policy Planning Framework including restoring mandatory housing targets and requiring local planning authorities to have up-to-date Local Plans. They will ensure local communities continue to shape housebuilding in their area, but where necessary Labour will not be afraid to make full use of intervention powers to build the houses we need.
• The party will support local authorities by funding additional planning officers, through increasing the rate of the stamp duty surcharge paid by non-UK residents.
• Adopt a brownfield first approach, prioritising the development of previously used and wherever possible, and fast-tracking approval of urban brownfield sites. Labour will take a more strategic approach to greenbelt land designation and release to build more homes in the right places. The release of lower quality ‘grey belt’ land will be prioritised and we will introduce ‘golden rules’ to ensure development benefits communities and nature.
• Labour will require all Combined and Mayoral Authorities to strategically plan for housing growth in their areas. We will give Combined Authorities new planning powers along with new freedoms and flexibilities to make better use of grant funding.
• Reform compulsory purchase compensation rules to improve land assembly, speed up site delivery, and deliver housing, infrastructure, amenity, and transport benefits in the public interest, including changes in landowner compensation by removing ‘hope value’.
• Commit to the building of new social rented homes and better protect existing stock by reviewing the increased right to buy discounts introduced in 2012 and increasing protections on newly built social housing.

Home ownership

• Give first-time buyers the first chance to buy homes and end entire developments being sold off to international investors before houses are even built. They will also introduce a mortgage guarantee scheme to support first-time buyers struggling to save a deposit.

Energy efficiency & decarbonisation

• Invest £6.6 billion over the next parliament in their warm homes plan and introduce stricter energy efficiency standards into the private rented sector by 2030.
• Labour will also work with the private sector, including banks and building societies, to provide further private finance to accelerate home upgrades and low carbon heating. They also commit to ensuring no one will be forced to rip out a boiler as part of their plans.

Renters

• Immediately abolish Section 21 ‘no fault’ evictions, prevent private renters being exploited and discriminated against, empower them to challenge unreasonable rent increases, and take steps to decisively raise standards, including extending ‘Awaab’s Law’ to the private sector.

Leasehold reform

• Labour will review how to better protect leaseholders from build safety remediation costs and take steps to accelerate the pace of remediation across the country. We will put a renewed focus on ensuring those responsible for the building safety crisis pay to put it right.
• Will enact the package of Law Commission proposals on leasehold enfranchisement, right to manage and commonhold by default on new flats. They have also committed to reforming ground rents and private housing estate charges.

RICS analysis

When Labour first announced their 1.5 million new homes target, RICS called for the party to provide a delivery strategy to support such a figure - and this manifesto goes someway to supporting that vision.

For the last few months, Labour have been setting out their housing policy ambitions, and while the manifesto contains little in the way of new announcements, it does underpin the importance the party will be giving to planning and land reform to meet their housing needs. Labour is right in identifying planning reforms as a policy lever for boosting economic productivity in today’s manifesto, with numerous academic studies having found positive correlation between GDP growth and housebuilding completions. As well as speeding up decision-making, planning reform is needed for our housebuilding sector function efficiently, which is needed if build targets are to be met. Forty years ago, SME housebuilders were responsible for around 40 percent of housing delivery annually, but by 2024, that number is below 10 percent.

Reforming the National Policy Planning Framework answers one of the important election calls RICS were hoping to see, the setting of mandatory targets. The speeding up of applications on ‘grey belt’ land is hoped to reduce the administrative burden holding back many developments while also protecting unnecessary green belt development. Additional funding to combined authorities and metropolitan mayors to grow their housing strategy will help to further devolve plans to local communities, however our engagement with mayors has shown that many face challenges of having to work with multiple planning systems that often are unaligned in priorities.

Labour takes a particular focus on overseas homeownership. This includes a higher level of stamp duty of non-UK residents which they have ringfenced to fund additional planning resource and a ‘first dibs’ scheme to give local residents priority on purchasing in a development over international investment. It is important however that such policies still make the UK an attractive proposition for overseas real estate investment, especially when many build-to-rent developments, critical to addressing our rental crisis, rely on international backing.

First-time buyers will welcome the proposals for additional mortgage support, especially when trying to save for a deposit. While the Conservatives have announced a new, but controversial, Help to Buy scheme which many first-time buyers may, on the face of it, see it as more appealing, Labour appear to be taking the safer route with deposit and mortgage support.

We welcome the commitment towards improving the energy efficiency in homes but do recognise the announcement in the manifesto of £6.6 billion in their warmer homes programme is less than what the party previously aimed for. That said, RICS have a track record supporting consumers with warm home programmes, with surveyors seen as key to providing holistic, professional advice and we look forward to supporting such a scheme if it were to come into effect, especially as we launch the RICS Residential Retrofit Standard.

Expanding Awaab’s Law to the private rented sector (PRS) and supporting leaseholders from further building safety remediation costs is welcomed. Ahead of the election, RICS were engaged with government officials to explore expanding the Decent Homes Standard to the PRS, and Labour have committed to reforming and expanding the standard – with surveyors well positioned to provide professional, impartial compliance advice.

Housing supply

• Local authorities and national government need to work together to deliver homes people can afford to rent or buy, where people need them. The Green Party Right Homes, Right Place, Right Price Charter will simultaneously protect valuable green space for communities, reduce climate emissions, tackle fuel poverty and provide genuinely affordable housing. It would:
  • Require local authorities to spread small developments across their areas.
  • Require all new developments to be accompanied by the extra investment needed in local health, transport and other services.
  • Ensure that all new homes meet Passivhaus or equivalent standards and house builders include solar panels and heat pumps on all new homes, where appropriate.

Energy efficiency & decarbonisation

• The Green Party will push for a local-authority-led, street-by-street retrofit programme to insulate our homes, provide clean heat and start to adapt our buildings to more extreme climate conditions. This would mean investment of:
  • £29bn over the next five years to insulate homes to an EPC B standard or above as part of a ten-year programme.
  • £4bn over the next five years to insulate other buildings to a high standard
  • £9bn over the next five years for low-carbon heating systems (e.g. heat pumps) for homes and other buildings

Renters

• 150,000 new social homes a year by:
  • New build and the purchase/refurbishment of older housing stock.
  • A community right to buy for local authorities for several categories of property.
  • Ending the individual ‘right to buy’, to keep social homes for local communities in perpetuity.
• Support for renters by:
  • Rent controls so local authorities can control rents if the rental market is unaffordable for many local people.
  • A new stable rental tenancy and an end to no-fault evictions so tenants are secure in their homes and don’t have their lives turned upside down on the whim of their landlords. We will also introduce a tenants’ right to demand energy efficiency improvements.
  • Private residential tenancy boards to provide an informal, cheap and speedy forum for resolving disputes before they reach a tribunal.

RICS analysis

Building up affordable, energy-efficient and high-quality homes that empowers communities and prioritises renters forms the centre of the Green Party manifesto.

Unsurprisingly for a party that prides itself on its green credentials, energy-efficiency improvements form a significant part of their investment plan. A ten-year programme of retrofitting will support the decarbonisation and energy security of the UK’s 30 million existing homes, perhaps the most ambitious retrofitting strategy of the manifestos, although a huge skills gap will need to be overcome to make this achievable.

While the party aims to build 150,000 new social homes a year, for private renters and first-time buyers, the manifesto does fall short of any detailed plan to increase supply, helping to address long-term affordability challenges. This is particularly important as the party proposes allowing local authorities to set rent controls, and while this may seem an appealing prospect to renters facing ever increasing charges, the reality is that where some measures have been introduced, this has led to a run -on supply, as landlords either exit the market due to their own cost-pressures or inflict record- high rent increases between tenancies, as seen in Scotland.

Housing supply

• Fast-track planning and tax incentives for development of brownfield sites. ‘Loose fit planning’ policy for large residential developments with pre- approved guidelines and developer requirements.
• Reform will incentivise innovation to speed up building: modular construction, digital technology and building sites that improve efficiency and cut waste.

Renters

• Reverse Section 24 for landlords. The tax system should encourage smaller landlords into the rental markets. Not penalise them. Reform will restore landlords’ rights to deduct finance costs and mortgage interest from tax on rental income.
• Abolish the proposed Renters Reform Bill - instead, Reform will boost the monitoring, appeals and enforcement process for renters with grievances and give priority to those who have ‘paid into the system’ by prioritising British nationals.

Leasehold reform

• All potential charges for leasehold or freehold residents must be clearly stated and consented to. Enforce Section 106 agreements. Ensure it is cheaper and easier to extend leases to 990 years and buy freeholds.

RICS analysis

Compared with other manifestos (or a ‘Contract’ as Reform names it), the Reform Party have published little detail on any housing delivery strategy. The party don’t set a form of house-building target but do seek to incentivise brownfield development through a fast-track planning system and tax incentives. With delays in the planning system one of the most common reasons developments stall, measures to encourage brownfield development are welcome, although quality and local infrastructure needs must be taken into consideration.

It is noticeable that the Reform Party are the only party who have developed specific policies to incentivise landlords to reform or enter the sector, particularly a reversal of Section 24 tax changes which many landlords have described as one of the biggest challenges to the sector. To address the growing rent affordability challenge, it is important to grow PRS stock. They also add to the list of political parties who go into the 2024 General Election with plans to overhaul the leasehold market, making it easier for lease extensions and calls for greater transparency when taking on a leasehold property.

While the existing Renters Reform Bill was not carried over following the dissolution of Parliament, the party have committed to scrapping it entirely and instead focusing on existing mechanisms. This will likely come as little comfort to many renters without additional tenancy security and improvements in the quality of the property through the Decent Homes Standard. In social housing, the party will prioritise British nationals within the waiting list, but without a specific housing delivery target, it is unclear where and how the party plans to increase the supply of the stock.