Following Labour’s landslide election win, much of the nation is waiting to find out what is in store for the UK housing market. Many major policy changes will be announced in the Autumn Budget on 30 October, but Housing Secretary Angela Rayner has already announced the new draft of the National Planning Policy Framework (NPPF), which is now out for consultation until September.
Delivery of new homes
In Labour’s manifesto, a pledge to build 1.5 million new homes over the next Parliament was made. To make this possible, Angela Rayner announced that the nation’s new mandatory housing target is 370,000 new homes per year – up from 300,000. All local authorities will have an obligation to increase delivery and councils may have to build on low-quality green belt sites to achieve this.
Change to calculations
The government has also changed the way of calculating the number of houses that must be built in each area. Rayner told MPs, “This new method will require local authorities to plan for homes proportionate to the size of existing communities and it will incorporate an uplift where house prices are most out of step with local incomes.”
Capital’s target reduced
The government has decreased the target for London from 100,000 to 80,000, which she said is still “a huge ask”. Last year, about 35,000 new homes were delivered in the capital under the previous government.
Affordable housing
Rayner promised that Labour’s housing plans would include “the biggest boost to social and affordable housing in a generation”; it is expected that at least 50% of developments on green belt land will need to be affordable.
Government schemes
Plans for buying schemes have yet to be announced; however, before the election, Labour promised to extend the Conservative’s Help to Buy scheme, under the new name of Freedom to Buy. This is part of their commitment to support 80,000 young people get a foot on the property ladder. Lenders are likely to be encouraged to offer more mortgages for those who cannot afford a larger deposit.
Right to Buy review
The new government is also expected to review the Right to Buy scheme, which enables most council house tenants to buy their home at a discounted rate. The Labour Party might limit eligibility for this scheme to ensure new social homes are not sold off.
We can help you through it
The next few months will see a lot of changes. With the new National Planning Policy Framework (NPPF) coming in September and the Autumn Budget following the month after, we are keeping on top of it all. Whether you’re looking to buy your first home or move up or down the housing ladder, we can help you to achieve your property goals.
Your home may be repossessed if you do not keep up repayments on your mortgage.
