"Labour's housing plans typically focus on urban regeneration. Areas targeted for regeneration or new housing developments could provide good opportunities for buyers, as the added infrastructure and improved amenities could lead to property value increases over time"
- James Law - Stacks Property Search
Understanding Labour's policies and adapting your property strategy to the likely changes will be key to making smart investments during their tenure.
Stacks Property Search explores some of Labour's policies that savvy property investors should take note of before parting with their cash.
James Greenwood of Stacks Property Search says: “Infrastructure is one of the biggest concerns for buyers of country property. There's very little that's totally protected; when it comes to national infrastructure in pursuit of carbon zero, all bets are off. National infrastructure in the shape of cables for wind energy, or solar farms, trumps SSSIs, AONBs and Conservation Areas, so don't assume that you will be totally protected in any of these areas.”
Ed Jephson of Stacks Property Search agrees. However, he adds that buying in a National Park, such as Dartmoor, will be a belt and braces move.
He explains: “While pushing essential infrastructure through our national parks isn't impossible, we're unlikely to see the construction of a string of pylons, or plans for a new town. Living on a national park does limit what owners can do to their own property, but it also brings with it a reassuring level of protection.”
Clare Coode of Stacks Property Search says: “Avoid green belt areas immediately adjacent to towns and large villages; they may not be fields for much longer. It's much safer to tuck yourself into the middle of a village where more development is difficult; or further away from local amenities where it's hard to make an argument for developing green belt land.
“Avoid buying a property that's adjacent to a barn that's been refused planning in the past. Class Q, the planning category for converting agricultural buildings into residential has been around for a while, but the restrictions are much more onerous than one might think. These restrictions may well be further loosened, making it easier for the owners of such buildings to obtain planning permission for the conversion.”
Nick Cunningham of Stacks Property Search says: “Labour is likely to push for green building initiatives, including energy-efficient homes. There may be incentives for buyers to purchase properties that already meet high energy efficiency standards (like those with high EPC ratings) or renovate homes to improve their energy efficiency. Properties with features like solar panels, good insulation, and double-glazing are likely to appreciate faster due to growing demand for eco-friendly properties.”
James Law says: “Labour's housing plans typically focus on urban regeneration. Areas targeted for regeneration or new housing developments could provide good opportunities for buyers, as the added infrastructure and improved amenities could lead to property value increases over time. Look out for locations where Labour has committed to large-scale house-building programmes or transport infrastructure upgrades, as these areas could offer strong potential for growth.
“Labour's policies may impact the buy-to-let market, as they have previously suggested measures like introducing rent controls, longer tenancies, and restrictions on certain landlords. If you're considering an investment in buy-to-let properties, it's essential to account for potential changes in landlord regulations and rental income limits.
“Labour is expected to introduce policies aimed at discouraging the purchase of second homes and holiday homes, particularly in high-demand areas like London and coastal towns. Proposals such as higher taxes on second homes and new rules limiting their use as holiday lets could make these investments less attractive. Buyers should review potential tax changes and regulations.”
Clare Coode adds: “Labour may seek to introduce higher property taxes on luxury homes, potentially through a reformed Council Tax, or through removing IHT allowances. Those looking to invest in high-end properties should be aware that taxes may become more onerous.”
It's not all bad news
James Greenwood points out that the property market has traditionally performed well under a Labour Government.
And Nick Cunningham adds: “Uncertainty creates opportunity. Now is a golden time to buy if you're in the market right now; there's plenty of property available for sale as property owners look to reduce their exposure, and lots of room for negotiation as the market is overreacting to the uncertainty. I'm currently buying under guide price for three clients, two of whom are agreeing to pre-Budget exchanges.”
James Law agrees. He concludes: “There are lots of buyers who are pushing ahead with fairly big deals. There's still a strong market, and contrary to popular belief, there are both UK and overseas buyers actively looking for high-end second homes. If you're property savvy, now is a good time to buy.”
