There have been disappointing promises made by both the Conservatives and Labour about housing, that the Institute of Government have labelled fiscally unrealistic, which neither party leader has addressed. It appears both major parties have failed to cost their plans, meaning promises will likely be undelivered. With Sunak’s untimely departure of D-Day commemorations, Farage’s disruption and now a betting scandal, it seems whenever the parties are supposed to talk about housing, it just gets left behind. What is important though is how the promises made by the two major parties could impact developers, architects and anyone working in the built environment sector. We have highlighted some key points and the impacts these may have on the sector below.
Here are the main points from their manifestos:
- The Conservatives have surpassed Labour’s target of building 1.5 million homes in the next government, by 100,000 homes. These are likely to be arbitrary figures for the manifesto and therefore will cease to make a significant impact on planning approvals. Michael Gove has admitted that the Tories have failed to meet their previous housebuilding promises, so many voters will struggle to believe their new manifesto commitments.
- Both major parties have committed to helping more young people own their own property with the Tories reintroducing the Help to Buy scheme and abolishing stamp duty for properties worth up to £425,000 for first time buyers. Labour hope to extend and make permanent the Freedom to Buy scheme, where the government acts as a guarantor for first time buyers. This will mean that more young people will be looking to buy their first home, which means that developers should be keen to offer residential properties that suit the younger generation.
- The Tories have committed to retain the Right to Buy scheme for social housing, whereas Labour want to reduce the number of homes bought through the scheme. Labour have also committed to ensuring any new housing will be 40% affordable. Labour will ensure 40% affordability, meaning that developers must be ensuring they have budgeted for affordable housing and present this when putting in planning applications.
- Conservatives have promised a planning policy of brownfield first, meaning that developments on brownfield sites will be favoured. They have also said they will give more support to local and smaller builders and land should be set aside by councils specifically for smaller developers. Labour will focus on grey-belt and brownfield land and have left the sites to be confirmed in their first year of power. Developers should be ensuring they focus on brownfield sites based on either party, however Labour also seem happy to accept grey-belt and green-belt developments as well. Conservatives have made promises to smaller developers.
- Both parties have committed to reducing the wait-time for approvals for brownfield developers. The Tories are looking to introduce an Accelerated Planning Service for major commercial applications, which would mean developers should receive a response within 10 weeks. Labour hopes to devolve more powers to local authorities to get projects approved more quickly. Brownfield developers will stand a better chance of seeing their projects be approved. Labour’s plans to devolve will mean that local authorities will be the decision makers in planning policy, therefore developers working across multiple local authorities will need to be aware that the policies may vary.
With the two major parties promising to tackle very similar issues, but in slightly different ways, it is vital you understand how these nuances will impact your business. Get in touch to gain further understanding of the impacts that either government will have on your projects.
Comments