Experts explain what Labour should prioritise this weekend
On Sunday the Labour party are set to host their first Annual Conference in 15 years in Liverpool.
Since being elected in July, Labour have hit the ground running in terms of introducing their new legislative programme. However, we all know change is never easy. With this in mind, a number of housing experts have expressed what they would like to see come from the conference, which is due to kick off on Sunday 22nd September and last until Wednesday 25th September.
Kevin Shaw, Managing Director of national sales at LRG
‘From LRG’s perspective, the property market is strong enough to withstand some change. And our landlords and homeowners have had some time to prepare for changes to Capital Gains Tax, Inheritance Tax and new leasehold legislation.
‘But a curveball which put up taxes further, especially Stamp Duty which is higher than in most comparable countries, would be bad news for the market’s recovery. Top of my wish list for future policy is a reduction in the punitive level of Stamp Duty – particularly over £500k which is holding back mobility in the housing market and affecting downsizers.
‘Under the previous administration, it felt that the government, in its constant stalling of new home development and disincentivising of the private rented sector, had failed to understand the seismic impact of the property market on the economy.
‘It’s not typical for the property industry to welcome a more left-wing administration, but Keir Starmer’s team went to considerable lengths to win business support. Long may this continue.’
Tim Foreman, Managing Director of land and new homes at Leaders Romans Group (LRG)
‘It is encouraging that the new government appreciates the important role that housebuilding plays in the wider economy. But it is adding to existing pressures by making demands such as 50% affordable housing and showing little interest in in providing incentives to kick-start the market – such as a new form of Help to Buy.
‘In the context of increased construction, financing and labour costs, some form of fiscal support is necessary and so I hope decisions are made at the conference on how October’s Budget can provide this.
‘Secondly, while there is a lot in the revised NPPF which is commendable, there are some serious omissions.
‘Perhaps the starkest omission is very little to support first time buyers and young families. Understandably the Labour government is keen to provide affordable homes for those most in need. And 50% affordable housing as a proportion of 370,000 new homes per year, of which ‘a focus on affordable rent’ is considerable.
‘But this doesn’t provide for young and not-so-young first time buyers; couples keen to start a family but unable to move on from a one bedroom flat; families bursting out of a three bedroom terrace and desperate for a decent-sized garden.’
Peter Hawley, Director of SOWN
‘As the Labour Party prepares for its first conference as the party in power since 2009, it is absolutely imperative that that it addresses the policy void in relation to first time buyers.
‘In all its housing and planning policy announcements recently – the Labour Party manifesto, the outline of the future Planning and Infrastructure Bill, Angela Rayner’s Statement to the House of Commons, and the revised NPPF – shared ownership has not been mentioned once.
‘There is an urgent need for more support for first time buyers and the omission of both from any major Labour housing announcements suggests that it is in danger of being overlooked, especially as considerable emphasis is being placed on social rent in relation to S106 agreements.
‘Helping first time buyers and others to get on to the property ladder is vital not only for the individuals involved but, as government has been quick to point out, central to the country’s social and financial prospects. Shared ownership is a great product and there is great demand for it – but more needs to be done at a government level to fully realise this potential.’
Andy Jones, Group Director of corporate and BTR at Leaders Roman Group
‘Our first concern is Stamp Duty: Multiple Dwellings Relief (MDR) was originally intended to support the supply of private rented housing by applying a fair rate of Stamp Duty for the average price of units in a housing development. However, MDR has not worked as intended since the introduction of the Stamp Duty surcharges for additional dwellings and overseas buyers, which has disproportionately affected developments outside of London and the South East. Fixing MDR will improve the viability of much needed new BTR homes across the country. Alternatively, the industry needs a Stamp Duty exemption for transactions of over 100 units.
‘Another ask is for zero rate VAT on repairs and maintenance of residential buildings. The tax system should not create barriers to people improving the safety, quality, or energy efficiency of their homes. Furthermore, by improving the investment proposition for long term investors in residential asset classes more BTR units can be developed. If the cost of this measure is challenging in the short term, the government should initially address the shortcomings of the current VAT relief for Energy Saving Materials installation.
‘Thirdly, we would like to see zero-rated VAT on construction. In the Treasury’s view, sales of residential buildings under construction can only be zero-rated for VAT once they have reached a certain stage of construction, known as “golden brick” – the point at which a housebuilder or other developer is building homes that are to be owned long-term by a third party. We support the BPF, which is requesting that the developer be able to recover of the VAT they themselves have incurred in construction.’
