With the introduction of the new Labour Government following their success at the General Election on 4 July 2024, widespread change is anticipated for the housing sector. Labour have promised to provide “the biggest increase in social and affordable housebuilding in a generation”.  

In this insight, we explore what the Labour win will mean for housing, and the promises the Chancellor of the Exchequer, Rachel Reeves, has made to get Britain building.

Labours’ promise to get Britain building

Labour have promised to build 1.5 million new homes during the course of the next parliament with a promise to make housing more affordable.  

They have promised significant change to the planning framework with the Chancellor noting that they have done “more in the first 72 hours to change planning than the Conservative government did in 14 years”.

Chancellor Rachel Reeves reveals Party’s plans

Today in her first speech as Chancellor of the Exchequer Rachel Reeves promised the following:

• The restoration of mandatory housing targets with an aim to build 1.5 million new homes in the next five years, which will include thousands more affordable and social rent homes. The Chancellor was unable to say when the new government would achieve its goal of building 300,000 new homes a year and acknowledged that it would take time to hit this target.
• The creation of a new task force to accelerate the building of new homes at stalled housing sites across the country including Liverpool Central Docks, Worcester, Northstowe and Langley Sutton Coldfield.
• Consultations on a new growth-focused approach to the planning system with more powers for ministers to directly intervene and the benefit of development being a central consideration.
• The addition of 300 new planning officers to help support local authorities across the country.
• Universal coverage of local plans and a review of the greenbelt boundaries to prioritise brownfield and "grey belt" land for development to meet housebuilding targets.
• Reforming the national planning policy framework to deliver infrastructure projects with decisions to be taken nationally rather than locally and a focus on prioritising infrastructure projects that have stalled.

Labour’s manifesto promises

The Labour manifesto also promised that they would:

• prioritise the development of social rented homes
• preserve the green belt but implement a “more strategic approach” to designation of greenbelt land
• amend the Affordable Homes Programme
• increase contributions to the supply of affordable homes
• increase rent to buy discounts
• increase protections on newly-built social housing
• work alongside local authorities to offer new developed homes to first-time buyers before international investors are given the opportunity
• provide a mortgage guarantee scheme to support first time buyers providing lower mortgage costs
• focus on the building of new towns, urban extension and regeneration projects to form new large-scale communities.

From a retrofit perspective Labour also made various green promises as part of their manifesto including a Warm Homes Plan which would involve investing £6.6 billion during the next parliament to improve the energy efficiency of the UK’s housing stock including:

• the provision of grants and low interest loans for investment into insulation, solar panels, batteries and low carbon heating to reduce costs
• work alongside bank and building societies to provide finance to fast-track upgrades to homes
• a promise that private rented sector homes will meet minimum energy efficiency standards by 2030, saving tenants costs
• abolish fuel poverty, cutting household costs for families and getting Britain back on track to meet climate targets.

When can we expect these developments?

Despite the extensive promises made within their manifesto relating to the social housing sector, to date Labour have provided no timescales or specifics on the promises made. It can, however, be said that Labour are making social housing a priority for the new government. We await news on how Labour plans to tackle their promises and when we are likely to feel the impact of these promises on the social housing sector.

How Capsticks can help

Capsticks aims to be the firm of choice to RPs, offering a full service across banking and governance, corporate and securitisation, development and planning law, housing leasehold and asset management. Our experts can provide advice and assistance on the matters discussed above and any updates that come in the future on this topic.

If you have any queries around what's discussed in this article, and the impact on your organisation, please speak to James Howard or Naomi Roper to find out more about how Capsticks can help.