With the Labour Government winning the UK election with a landslide majority, Property Group, Beresfords, believe that the landscape of the UK property market is set to remain robust and move forward positively into the second half of the year, as the party supports a ‘One Nation’ housing policy.
As an award-winning Estate Agency buying and selling more property in Essex than any other independent estate agent, Beresfords are reassuring both vendors and buyers to remain confident in the UK property market.
Mark Lawrinson, Operations Director, Residential Sales gives their expert opinion and advice for first-time and second-hand buyers, Landlords and Tenants.
New homes
The housing crisis is well known to be one of the country’s biggest barriers to growth but Labour’s commitment to ‘get Britain building again’ has laid out plans to build 1.5 million new homes over the next parliament.
A more strategic approach to green belt land, prioritising brown and grey belt land for development, will see new homes in the right places, with stipulation to adhere to the party’s ‘Golden rules’ to include affordable housing and public service provision.
Encouraging climate for Developers: Developers are in a strong position as the demand for new homes continues to grow. Labour's housing policies, including plans to streamline planning processes, are expected to boost the new homes sector significantly.
A promising time for first-time buyers: With Labour's commitment to affordable housing and increased support for first-time buyers, the party manifesto has promised a permanent, comprehensive mortgage guarantee scheme to support first-time buyers who struggle to save for a large deposit, with lower mortgage costs. The market is expected to benefit from a number of new policies aimed at making home ownership more accessible. Policies including the proposed ‘Freedom to Buy’ scheme and maintained stamp duty reforms make it an opportune moment to enter the property market.
Beresfords is currently managing a new homes portfolio worth over £250 million - with developments from Finchingfield near Braintree down to North Ockendon in Greater London.
Lettings and rental
Labour wants to see a private rented sector that provides decent, safe and secure homes at a price people can afford. It is therefore essential for Landlords to work with trusted agents to ensure they are aware of their right and responsibilities.
Opportunities for Landlords: The rental market remains robust, offering significant opportunities for Landlords. Labour's focus on tenant rights and rental market regulation is expected to create a balanced environment, ensuring fair play for both Landlords and Tenants, which is likely to sustain high demand for rental properties.
Tenant demand: High demand for rental properties is expected to persist, driven by Labour's commitment to improving rental conditions and increasing the supply of affordable rental homes. This ensures that rental yields will remain attractive, making it an excellent time for Landlords to expand their portfolios.
Second hand market
Over recent years, families have been hit hard by spiking mortgage costs. In the wake of this tough climate, those looking to move up the property ladder to support growing families will begin to see progression through the implementation of one of Labour’s ‘First Steps for change’ to drive economic stability through tough spending rules in the hope of keeping mortgage rates as low as possible.
Market stability: The second-hand market has shown remarkable resilience throughout 2023, overcoming both economic and political challenges and unrest. This stability is expected to continue, with Labour's policies likely to enhance buyer confidence and market activity.
Mark Lawrinson, Operations Director, Residential Sales, said: “Labour's economic policies focus on reducing inflation and promoting sustainable growth, which will undoubtedly benefit the housing market.
“Alongside Labour’s plans, The Bank of England's steadfast approach in maintaining interest rates amidst inflationary pressures provides assurance for market stability and we, at Beresfords, expect these rates to stabilise, if not lower, further supporting the property market's growth.
“For anyone looking to discuss their current or future property needs, our doors are always open.”
