As the general election approaches, it is crucial for the next government to prioritise the housing and property market. We turned to four industry experts to shed light on the key issues that need to be addressed and get their recommendations for the incoming government. From a stamp duty overhaul to building more affordable, here’s what they had to say.
Tomer Aboody founding director at MT Finance
“In my opinion, stamp duty is the most obvious starting point. At MT Finance we have long been advocating for reform and reduction of the current system. While the Conservatives have promised that they will permanently raise the threshold for first-time buyers to £425,000 if they win the election, I’d like to see the government – whichever party that is – go further. Removing stamp duty for those who are downsizing would provide homeowners with an incentive to opt for smaller properties, while freeing up the larger family homes. It could also help to stimulate the property market.
“We also need to consider the challenges buy-to-let landlords have faced – and continue to face. Like with the property market as a whole, the rental sector needs sweeping reforms to encourage landlords to come back to the market as they’ve been hit multiple times in the last few years. The Renters (Reform) Bill is still yet to pass, and any future legislative changes need to be discussed with the landlord community first to avoid it being scrapped later down the line.”
Peter Williams, CEO at Propp
“Planning, planning, planning. The key to unlocking growth is to get the construction industry roaring, and the way to do this is via total reform of our antiquated planning system. We need to bite the bullet and accept that limiting ourselves to brownfield sites and vacant commercial spaces is not enough, and thoughtful development on the greenbelt is essential. It will deliver growth to cities that have been unable to expand, which will stimulate local economies, spark investment in our struggling high streets and support small business.
“Building more affordable homes, and more homes in general, will take the pressure off both first-time buyers and tenants which will take the microscope off landlords and investors who are the scapegoat for all the country’s woes. We also need to encourage more fluidity throughout the housing market, so seeing either a cut in capital gains or stamp duty could encourage retired couples holding onto family homes to downsize.”
Chris Oatway, CEO at LDN Finance
“I think it’s fair to assume at this point that Labour will form the next government. There isn’t much to encourage increased demand in their manifesto, other than making the current mortgage guarantee scheme for first time buyers permanent, and their only mention of stamp duty is in plans to increase the surcharge paid by non-UK residents. However, they do plan to address supply-side issues by pledging to build 1.5 million new homes over the next parliament and give first-time buyers ‘first dibs’ on units within new developments, although it isn’t yet clear how this will be achieved.
“There is mention of reforming the planning laws, but changes are neither comprehensive or radical. Plans to increase the number of local planning officers are positive and, whilst a return to mandatory housing targets will provide much-needed additional housing stock, this might cause consternation on the ground in some localities. Brownfield sites will be prioritised but the manifesto is clear in asserting that brownfield alone will not be enough. Historically, the planning process has been easier under a Labour government and the larger developers are certainly optimistic that projects will come forward quicker and create more opportunities.
“Crucially though, we need more housing stock of different tenures. We have essentially offshored provision of social housing to private individuals, however it’s clear that not all landlords can deal with the type of rate shock we have seen recently. This has made rent more expensive and tenancy more insecure. There is still room for a private rental sector though and I’d agree with George Osborne’s approach that this should be professionalised. We need fewer ‘dinner party landlords’ and more landlords who have a robust portfolio at a lower gearing and enough domain expertise – and commitment – to be responsible for providing houses for people. Buy-to-let should be considered a business and not an investment.
“We should also focus on providing genuinely good quality housing for older homeowners to downsize to. This will free up stock of large housing at the top end of the housing ladder. Attacking both ends of the scale will help everyone in the middle.”
Lea Karasavvas, managing director at Prolific Mortgage Finance
“There has been a long-term issue that the number of houses being built is simply not enough, and despite numerous pledges this continues to be the case. I believe a top priority will be the promise of building more houses, but that being a priority and that being delivered are two very different things, as time has continued to show.
“Quite simply, another reform is required in stamp duty. Whilst I appreciate there is the risk of this over-inflating the market, it is much needed to boost a very flat purchase market. Assistance to first-time buyers and next-time movers is required to reignite a market that has been struggling since late 2022. I would hope for a reform to assist landlords also – who have been hit hard for years – to encourage not just the housing market, but the many contributing businesses associated to that sector.
“Finally, continual assistance needs to be given to assist first-time buyers and whilst a shot-in-the-arm in the purchase market may start to increase valuations, innovation to assist them needs to evolve, starting with the stamp duty threshold being raised and perhaps when it comes to affordability assessments.”
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Here at MT Finance we remain committed to supporting you and your clients, regardless of the outcome of the election via our regulated and unregulated bridging loans as well as buy-to-let mortgages. If you have a case that you would like to discuss directly with us, fill out this form and we will be in touch with you shortly.