On 4 July in 2024, Labour received a landslide election to type a authorities. From the offset, it turned clear that housing can be an enormous coverage space. Now, one 12 months on from that momentous win, we needed to check out the housing market right this moment to see the way it’s been impacted by the Labour authorities and the way they’re measuring as much as their pledges.

The housing market

Knowledge from the UK Land Registry reveals that the typical UK home value in July 2024 stood at £290,000. By April 2025, when the most recent knowledge was launched, and costs seem to have fallen to £265,000. Many will put this right down to the tip of the Stamp Responsibility Land Tax vacation on the finish of March. This coverage meant Stamp Responsibility can be launched at a lower cost threshold, due to this fact growing the variety of properties which might change into liable to the tax. Shifting ahead, it will likely be attention-grabbing to see if this value drop is a short-term response or turns into a extra sustained impression.

Encouragingly for a lot of patrons, rates of interest have continued to fall for the reason that election in 2024. When Labour had been elected, the Financial institution of England fee was 5.25% whereas the present fee stands a full share level decrease at 4.25%. This could be considered as a constructive for patrons and people with a mortgage, with borrowing set to be cheaper compared to this time final 12 months.

Maybe as a result of a mix of decrease home costs and falling rates of interest, the variety of transactions, based on authorities knowledge, seen in Could 2025 (the latest knowledge), has elevated considerably compared to the month earlier than. Whereas April noticed 65,110 transactions, Could noticed a rise of 25% to 81,470. Nonetheless, it is very important notice a lower of 12% within the variety of transactions when comparability is made to Could 2024, earlier than the Labour authorities got here to energy. This year-on-year fall could also be because of the ongoing results of the tip of stamp responsibility vacation, with sellers needing additional rate of interest drops to encourage extra market exercise.

When wanting on the housing market as an entire, we see blended responses to the Labour authorities’s 12 months in energy. However how have their housing-specific insurance policies been obtained by the sector and are they on plan?

1.5 million new houses

In a big announcement final 12 months made with nice fanfare, the federal government introduced a dedication to construct 1.5 million new houses by the tip of their present Parliament in 2029. The response was blended, whereas some raised considerations about the place these houses will go, others celebrated the constructing of a lot wanted housing. However how shut are they to hitting this goal? Estimates differ.

In accordance with a authorities report printed on 20 Could, Properties England has surpassed its 2024/25 annual targets for the variety of new houses began (greater than 36,000), the variety of new houses accomplished (38,000) and the variety of potential houses unlocked (79,000). All of those figures noticed will increase compared to 2023/24.

Nonetheless, in their newest forecast, Savills count on the supply of housing to fall considerably. They count on to see 840,000 new houses constructed within the 5 years to 2028/29. This may go away the ultimate determine 42% decrease than the general goal. Savills notice the autumn in planning consents over the past three years and the necessity for persistence concerning the Planning and Infrastructure Invoice.

Planning and Infrastructure Invoice

This laws was introduced together with the 1.5 million new houses pledge to elucidate how this a lot increased determine may very well be achieved. By reforming the planning system, the goal is to make it simpler and faster for planning permission to be granted, due to this fact encouraging extra constructing. This may embody the reintroduction of obligatory housing targets for councils, opening up ‘brownfield’ and ‘grey-belt’ land, and introducing golden guidelines for inexperienced belt of land, i.e. together with a sure variety of inexpensive or social properties and offering the required enhancements to native infrastructure.

The invoice is at present going by way of a second studying within the Home of Lords, having handed by way of the Commons. Whereas some assist the updates to the planning system and opening up of land, many considerations concerning the invoice have been raised. Issues embody a concern that it might bypass native democracy by undermining the position performed by planning committees, the sharp improve in housing targets in rural areas with insufficient infrastructure and a scarcity of expert workforce to construct the brand new properties.

The invoice continues to be mentioned and will probably be put to the King to be made regulation as soon as all amendments have been made.

Renters’ Rights Invoice

Our newest Property Sentiment Index confirmed a small proportion of the UK public know loads or a good quantity (30%) concerning the Renters’ Rights Invoice, regardless of 48% of these surveyed at present renting the house they stay in.

The invoice intends to enhance the present non-public rental system, giving renters extra safety and stability. Key components embody:

Eradicating landlords’ potential to evict a tenant with out purpose.
Give tenants a strengthened proper to having pets within the property.
Apply the Respectable Properties Commonplace to the non-public rented sector.
Make it unlawful for landlords to discriminate in opposition to potential tenants as a result of components like having kids.
Guarantee landlords don’t improve rents above the extent of inflation.

Whereas renters might welcome the elevated protections, landlords warn that stricter laws and hire controls might discourage funding within the sector. Some have already indicated plans to exit the market, which might cut back rental provide and put upward strain on rents.

Conclusion

One 12 months on, Labour has made housing a transparent coverage precedence—backed by important monetary commitments and impressive laws. Public and business responses stay divided, and it stays to be seen whether or not Labour can meet its goal of 1.5 million new houses by 2029.

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