Where does property stand under a Labour Government?

On 17 July 2024 in the first State Opening of Parliament under the new Labour Government, The King’s Speech unveiled proposals to help fix issues in the property market in the UK and support delivery of the government’s first steps and missions to rebuild Britain. 

King Charles stated:

“My Ministers will get Britain building, including through planning reform, as they seek to accelerate the delivery of high-quality infrastructure and housing They will also pursue sustainable growth by encouraging investment in industry, skills and new technologies.”

Since taking up his premiership, Prime Minister Keir Starmer has put property at the forefront of his manifesto.

The newly appointed Chancellor of the Exchequer, Rachel Reeves, announced on 8 July that a consultation on amendments to the National Planning Policy Framework are part of a series of "urgent" reforms to the planning system.

In her first speech in the role, Reeves discussed several planning commitments including building 1.5 million homes, re-introducing mandatory housing targets and delivering 300 additional planning officers.

Reeves said “We will reform the National Planning Policy Framework, consulting on a new growth-focused approach to the planning system, including restoring mandatory housing targets” and that there will be "changes not only to the system itself, but to the way that ministers use our powers for direct intervention".

Under new proposals the new Levelling Up Secretary and Deputy Prime Minister, Angela Rayner can intervene in planning decisions where regional and national interests would benefit.

Rayner will “Make clear what will now be expected of Local Authorities including universal coverage of local plans, and reviews of greenbelt boundaries,”

Andrew Wright, Head of Land Planning and Development at Kirkby Diamond comments:

“The delivery of much needed development has for too long been frustrated by the imposition of increasing demanding and restrictive planning policies.  The layering of policies intended to filter out inappropriate development has in many cases resulted in no development at all. Added to this, the increased time and cost of navigating a way through the planning process has effectively priced out many SME developers and as a consequence of that, there is an acute shortage of locally deliverable sites at a sub strategic level.   

The Government appear to have taken a common-sense approach to hit housing targets and enable infrastructure development needed in the UK. I await to see the detail of proposals but the fact that housebuilding is at the forefront of the Government’s manifesto is a boost for those involved in property.”

Moving on to existing housing stock. The new Government plans to continue with the Renters Reform Bill which will see an end to “No Fault Evictions”. This bill was surprisingly not included in the “washing up” period of the previous parliament. This will be welcomed by renters but cause concern for some landlords.

The King’s Speech has also provided an update on Leasehold reform matters. The Leasehold and Freehold Reform Act was introduced as part of the “washing up” period after the general election was announced. However, the new Act is not capable of being used with supplemental legislation being introduced. More information on the Leasehold and Freehold Reform Act can be found on our website

King Charles said: “Legislation will be introduced to give greater rights and protections to people renting their homes, including ending no fault evictions and reforming grounds for possession. Draft legislation will be published on leasehold and commonhold reform”

Adam Smylie, Head of Valuation at Kirkby Diamond comments “Since the Leasehold and Freehold Reform Act was washed through parliament more questions have been created than answers. We have received unprecedented levels of enquiries from leaseholders asking us whether they should extend their lease or not. As it has been by and large business as usual until the detail of the supplemental legislation is announced, the new government’s commitment to continue with leasehold reform is welcomed.  In my opinion the sooner this is done the better to reduce uncertainty in this property sector.”