News | July 5, 2024

General Election analysis – impact on the residential property market

What changes can we expect in the property world on the back of the historic landslide result for the Labour party in the General Election?

Based on Labour’s manifesto and election campaign messaging they promised an immediate change in legislation in the rental sector. Labour pledged to overhaul the regulation of the private rented sector and “immediately abolish section 21 ‘no fault’ evictions” as well as look at ways to allow leaseholders to challenge unreasonable rent increases.

Building Safety was also mentioned in the manifesto, where Labour said they plan to take action to improve building safety and bring in minimum property standards and to extend ‘Awaab’s Law’ (which requires landlords to investigate and fix damp/mould and other health hazards within specified timeframes).

Leasehold reform is likely to take some time to come through and when it does, Labour have said they will review how to better protect leaseholders from costs and “bring the feudal leasehold system to an end”. But, will they really ban new leasehold flats and push commonhold as the new default tenure? 

As one with a vested interest in how well the housing market fares, I do hope that we will now see renewed confidence in the property market again. With a new government in place, there is an expectation that there will be a positive impact on the housing market and there is already a general air of optimism. The hope is there will be a steady growth in house prices on the back of the election results and in expectation of cuts in interest rates.

There are hints of changes in Stamp Duty but these will be saved for the first budget of the new Labour government and are unlikely to have an impact on those already in the middle of property transactions.