Labour's housing policies could boost property market, experts say

With Labour preparing to form the next government, experts believe the party's housing policies could provide a much-needed boost to the UK property market. Labour has promised to build 1.5m homes and help first-time buyers through a mortgage guarantee scheme. The change of government is also likely to bring market stability, while base rate cuts from the Bank of England are also expected, which would lower mortgage rates and encourage more people to buy or sell homes. The Guardian says that relaxing planning constraints on greenbelt building, increasing the construction workforce, developing new communities, and funding social housing are all levers to pull. But, it adds that of these options, the first may be unpopular, the second needs time, the third has failed under David Cameron and Gordon Brown, and the fourth seems implausible given the main parties' economic constraints. Separately, the Telegraph notes that that British prime ministers who presided over strong housing markets have enjoyed longer tenures. Baroness Margaret Thatcher and Sir Tony Blair saw significant house price growth and high numbers of first-time buyers during their terms. However, Liz Truss and Gordon Brown experienced declines in property values and first-time buyer numbers.

The Daily Telegraph (05/07/2024)   The Guardian (05/07/2024)   The Sun (05/07/2024)