Now the parties have launched their manifestos, OnTheMarket.com provides a mini-guide to the key campaign promises that affect anyone owning, buying, selling or renting property.
With the general election around the corner, it’s time to consider how the property market will be affected depending upon which political party is elected.
The Conservatives
Theresa May launched her party’s ‘mainstream’ manifesto hoping to win the support of swaying Labour voters and give the Tories dominance over the political landscape’s centre-ground.
When it comes to property, the manifesto, entitled ‘Forward Together’, has put priority on ‘social and municipal housing providers’ but mentions little about the private rented property sector. And when it comes to buying, there is no mention of plans to axe the three per cent Buy to Let Stamp Duty surcharge, nor is there talk of a reassessment of the Stamp Duty bands which have been blamed for a drop in transactions, particularly across London’s Prime market.
New social housing and reforms
- The party has renewed David Cameron’s pledge to build one million new homes by the end of 2020 with a further 500,000 by the end of 2022. It also promises to reform and modernise the home buying process so it is more efficient and less costly. However there is very limited detail in the manifesto on exactly what this means.
- Theresa May has said she would ‘support the most ambitious councils and housing associations’ to build more social housing and has pledged to make it easier for local authorities to take over derelict buildings and unused land by reforming compulsory purchase rules.
- The party also announced new ‘fixed-term social houses’ which would be sold on after 10 to 15 years of being leased with tenants given the first option to buy.
- Absent from the manifesto were David Cameron’s plans for discounted starter homes for first-time buyers and there was no confirmation that the Help to Buy loan scheme on new builds would continue beyond 2021.
Renting
The Conservatives have confirmed their proposed ban on upfront letting fees for tenants will go ahead and promised to crack down on unfair practices in leasehold, such as escalating ground rents.
The manifesto also states: ‘We will also improve protections for those who rent, including by looking at how we increase security for good tenants and encouraging landlords to offer longer tenancies as standard’.
Social care
The other big campaign promise that has made the headlines is the Conservatives’ plan to tackle the crisis in social care. Their proposals are radical and far-reaching and have been strongly opposed by the other main parties. Initially, the policy suggested pensioners would have to pay the entire costs of their social care down to their last £100,000 of assets.
But following its unpopularity on the doorstep and criticism from other parties as a ‘dementia tax’, the Prime Minister has since climbed-down and is now under pressure to say where she will set a cap on the total amount anyone will be expected to contribute to their care costs. She has said she won’t decide on a figure until after a post-election consultation process.
Read more on the Conservatives’ social care proposals.
Labour
Entitled ‘For the many, not the few’, Jeremy Corbyn’s party manifesto is promising many nationalisations of Britain’s infrastructure but remains criticised for providing limited clarity as to how the books will be balanced.
New homes and social housing
- One million new homes have been promised by 2022 and Labour says that half of them will be council or housing association homes. And while the Conservatives were quiet on any Help to Buy scheme extension, Labour has pledged to extend it until 2027.
- Local people will also be given ‘first-dibs’ on buying a new build home in their area as a starter home.
- Labour also plans to establish a new Department for Housing to tackle the housing crisis.
- The party promises to suspend Right to Buy unless councils pledge to replace homes sold on a like-for-like basis.
- The Conservatives’ ban on long-term tenancies will be scrapped to give tenants more security in their homes.
Renting
- The party has promised a ‘consumer rights revolution’ if it wins power at the General Election with the introduction of new legal standards for rented homes with fines of up to £100,000 for landlords who fail to meet the ‘tougher minimum standards’.
- Labour says it would make three-year tenancies ‘the norm’ with an inflation-linked cap on rent hikes.
- Housing benefit for under 21s will also be reinstated.
- The party has promised legislation banning upfront tenancy fees. It is also offering homeowners interest-free loans to improve their properties. Four thousand additional homes for rough sleepers will be provided.
The Liberal Democrats
New homes
- Tim Farron launched his party’s manifesto called ‘Change Britain’s Future’. Within it is the promise of building 300,000 homes a year for sale or to rent by the end of the Parliament.
Renting
- The Lib Dems pledged the introduction of a ‘rent to own’ scheme which would allow residents’ rental payments to contribute towards their eventual ownership after about 30 years. They also want to give tenants first refusal on buying a home they rent from a landlord who decides to sell.
- They aim to help young people in need by reversing cuts to housing benefit for 18-21-year-olds.
- Increase Local Housing Allowance (LHA) in line with average rents in an area.
- The Lib Dems want to give individual councils the chance to end Right to Buy.
- They plan to scrap the ‘bedroom tax’, while seeking to achieve the aim of making best use of the housing supply through incentivising local authorities to help tenants ‘downsize’.
Flood defences and second homes
The party has also promised to spend £2billion on flood defence schemes to protect properties in low-lying areas. Other key Lib Dem pledges include the building of 10 new garden cities, measures to make homes more energy-efficient and giving councils the power to levy up to 200 per cent council tax on second homes.
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