New Labour Government: How will property law be affected?
Following the Labour Party winning the 2024 general election for the first time in fourteen years, people are wondering what this means for the property market and conveyancing.
Labour has noted some key areas they are wishing to make changes to:
- Stamp Duty Land Tax
- Building new houses
- Renter’s Reform
- Leasehold Reforms.
Stamp Duty Land Tax
Stamp Duty Land Tax is required on any purchase over a certain price. You pay the tax when you buy a freehold, new or existing leasehold, or a property through a shared ownership scheme and are transferred land or property in exchange for payment. The threshold is currently £250,000 for residential properties, £425,000 for first time buyers buying a residential property worth £625,000 or less and £150,000 for non-residential land and properties.
Labour has currently set out that the nil rate band will be reduced to £300,000 from the current band of £450,000. Overseas buyers are predicted to be taxed an extra 1%. However, Labour have also proposed the freedom to buy scheme, to help get more young people onto the property ladder.
House Building
Labour states they plan to build 1.5 million new homes over the next five years in order to address the shortage of homes available and combat the issue of rising house prices due to high demand and low supply. They also have said they will be upgrading five million existing homes. These are ambitious targets, with at least 300,000 new homes being built per year.
This will require two issues to be addressed, the need to reform the planning system to allow for a quicker process but also the need to ensure there is enough skilled works in the construction industry to build the homes needed. There are concerns that this will result in greenbelt areas being built upon.
Renter’s Reform
Labour have suggested they wish to revive the Renter’s Reform Bill and will end no-fault evictions, i.e. section 21 and end fixed term tenancies etc. The Labour Government also wish to create a comprehensive database of landlords, ensuring increased accountability and ensuring compliance with housing standards. The government have said it will review the discounts available for right to buy for council tenancies and seek to protect new council social housing from being lost to a right to buy.
Leasehold Reforms
Labour wishes to ban new leasehold flats and ensure commonhold is the default for apartment blocks.
The new Labour government have proposed significant changes to housing policies with the aims of addressing current issues in the housing market.
Can we help?
There does appear to be changes afoot, as and when these changes happen or if you would like to discuss a property further with a member of our team, please feel free to get in touch with our property department on 0191 243 8167.
