Labour cruised to an easy election win this morning taking more than 400 seats and with them the scalps of senior Tories such as former Prime Minister Liz Truss, Defence Secretary Grant Shapps, Commons Leader Penny Mordaunt, Transport Secretary Mark Harper, Veterans Minister Johnny Mercer and swathes of others.
Sir Keir Starmer became Britain’s new Prime Minister after meeting with King Charles at Buckingham Palace (main picture). The Labour leader shook hands with the monarch before heading to Downing Street where he will deliver an historic first speech in the top job.
Despite the win exceeding expectations, it came as little surprise to an industry that had been watching the lacklustre campaigns unfold since former Prime Minister Rishi Sunak called the election on May 22.
Nathan Emerson, PropertymarkNathan Emerson, Chief Executive of Propertymark, says: “Propertymark welcomes wide-ranging engagement with the new Labour Government to help steer an objective pathway forward for the housing sector. We have seen a chronic undersupply of affordable new housing for many years.
“Sustainable housing is the foundation for any strong economy and there must be clear and well thought out plans that inspire investment and improve supply moving forwards. We want to see long-term cross-party cooperation that delivers the right kind of homes in areas they are desperately needed.”
Kevin Shaw, LRGKevin Shaw, National Sales Managing Director at Leaders Romans Group, says: “Labour’s landslide election victory this morning came as no surprise and so we don’t anticipate shockwaves in the property market.
“Historically sales tended to slow when general elections were called and would pick up soon afterwards. But there’s little evidence of that: our applicant registration figures have risen quite considerably both on the previous half year and year-on-year.
“What we do expect is more certainty in the property market.”
He adds: “We expect anyone who has delayed selling because of the general election to put their property on the market in advance of the summer holiday season and with a view to being established in a new home before Christmas.”
MORTGAGES
“Mortgage swap rates are down and we expect the Bank of England to finally reduce interest rates by at least 0.25% on 1 August. Both factors will provide a significant further boost.
“The unknowns are potential changes to Capital Gains Tax and Inheritance Tax which could have a direct bearing on the market. But fears of tax increases should provide an incentive for sales to take place sooner rather than later.
“It’s not typical for the property industry to welcome a more left-wing administration, but Keir Starmer’s team has gone to considerable lengths to win business support while also promising not to hike taxes. And so the sentiment here at LRG is a positive one and we look forward to our sales trajectory continuing upwards.”
TURNING POINT
Allison Thompson, LRGAllison Thompson, National Lettings Managing Director, Leaders Romans Group, says: “Labour’s victory in the general election marks a significant turning point for the private rented sector (PRS). With their ambitious plans for housing reform, it is crucial that the new government addresses the pressing issues facing both landlords and tenants.
“Firstly, fiscal reform must be a priority. The current tax regime has already driven too many landlords out of the PRS due to increased taxes and additional regulations.
“Property lets are the only businesses in the UK that do not have taxes offset. To ensure a stable and thriving rental market, taxation must be reassessed to level the playing field.
“Secondly, the role of the PRS in addressing homelessness cannot be overstated. With a growing deficit in affordable homes, the PRS is pivotal in providing homes for those in need.
“Labour must shift its focus from penalising rogue landlords to supporting and encouraging fair and honest landlords who contribute positively to the housing sector.”
ENERGY EFFICIENCY
Thompson adds: “Energy efficiency demands are another critical area that requires clarity. Landlords need a realistic and manageable timeframe for implementing energy efficiency improvements, considering the associated costs and rental voids. Clear guidelines and reasonable expectations are essential for the long-term sustainability of the sector.
“The failure to pass the Renters (Reform) Bill was a setback, highlighting the need for comprehensive housing policies that provide stability and address the critical issues in the sector. Labour’s promise of 1.5 million homes over the next parliament is ambitious, and while it is promising to see a focus on housing build programmes, the undersupply in the PRS during this period must also be addressed.
“Finally, clear commitments on Capital Gains Tax (CGT) will provide homeowners with the certainty they need to plan their futures without fear of sudden policy changes.
“We urge the new government to place housing at the heart of its agenda, providing the consistency and long-term focus that the sector desperately needs. The private rented sector is integral to solving the housing crisis, and we look forward to working with Labour to ensure that all aspects of the housing market are effectively addressed.”
CENTRIST STANCE
Dominic Agace, WinkworthDominic Agace, Winkworth’s Chief Executive, says: “With a new Labour government with a strong majority, it looks like we will have political certainty, putting the instability of the past 10 years behind us and raising the profile of the UK amongst our international peers once more. A lack of stability has deeply affected the property sector.
“Now, coupled with the increasingly positive news on the UK prospects and with interest rate cuts pending, this should encourage a new upbeat mood in the property market. Therefore, I think it’s really important that the new Government stays true to the centrist stance on which it was elected.
” I look forward to a steady, consistent and business-friendly approach to the economy without unfunded spending, so we can finally address the biggest issue of the day. High interest rates are hurting home buyers, preventing first time buyers getting on the ladder and preventing investment in new homes.
“I believe it’s essential that the new government, in its desire to show progress, that it does consider its new policies carefully, rather than rush them through – to avoid unintended consequences.
“I welcome their investment into planning departments and quicker release of development sites to help meet housing demands.
DON’T RUSH INTO IT
“I don’t want them to rush into intervening in the private rental market without considering that supply of properties to rent, particularly in the cities is the fundamental issue. We are currently short of 120,000 rental properties to meet current demand.
“Banning Section 21 without adequate resources in the court system to allow landlords to exit anti-social tenants will lead to a sell off. This also applies to rent controls where mechanisms need to be well thought through. Without growth in rents aligning with inflation over the long term, institutional investment will not be made in the sector. This is much needed to create enough new homes for a growing number of tenants of all ages.”
BUYING IS CHALLENGING
Matt Thompson, ChestertonsMatt Thompson, head of sales at Chestertons, says: “Labour’s announcement to lower the stamp duty threshold for first-time buyers from £425,000 to £300,000 in April 2025 has left many wondering if the party will introduce any major initiatives that will make it easier to get on the property ladder.
“Buyers will be looking for Labour to fulfil its pledge to introduce the Freedom to Buy scheme but are concerned that buying a first home continues to be challenging.
“Labour’s plan to increase the already higher stamp duty rate on purchases of residential property by non-UK residents by 1% is unlikely to have a major impact on London’s property market.
“The capital remains a global city that attracts international professionals and investors who will simply adapt their property search by lowering their budget or by buying in a part of the city where they get more property for their money.”
PRESSURE TO DELIVER
Nigel Bishop, Recoco Property SearchNigel Bishop, Managing Director and Founder of Recoco Property Search, says: “Labour’s manifesto pledged to improve the UK’s housing market and the party will be under immense pressure to deliver.
“One promise was to build 1.5 million homes and we are interested to learn more about Labour’s plans to utilise ‘poor quality’ green belt areas as this will likely be met by protests from some local residents and organisations.
“Labour’s pledge to levy VAT on school fees has been labelled one of the party’s more controversial ones.
“This will leave many parents unable to afford private school education and inevitably impact on the property market by boosting demand for properties in close proximity to good state schools.
“Properties in these catchment areas can already ask a 20% premium and a politically-caused boost in demand for such homes will create an even more competitive market for buyers.
“In the run-up to the general election we already saw house hunters, who previously paused their activity to observe the political development, resume their search. Now that a party has been elected and economists predict a likely interest rate cut over the coming months, we expect further buyers to follow suit.
LEASEHOLD REFORM
Mark Chick, ALEPMark Chick, director of ALEP (the Association of Leasehold Enfranchisement Practitioners), says: “So now that we know the size of the Labour majority it seems a fairly safe bet that the next five years will see a more vigorous programme of reform in the residential leasehold sector.
“During the next five years we are likely to see the acceleration of commonhold and possibly legislation to end or put a sunset date on leasehold for new properties.
“It will be interesting to see what Labour chooses to do with the Commonhold project and I expect we will now find out what other drafting has been done by DLUHC in relation to the law commission’s original reports and recommendations.
“In addition we can presumably expect the current reforms in the Leasehold and Freehold Reform Act 2024 to be brought into effect and the question now turns to the timing of these and secondary legislation.
“ALEP remains ready to engage with government and we look forward to meeting with the new Secretary of State for Housing and Ministers to continue our programme of engagement to help ensure that any new legislation is fit for purpose.”
HOUSEBUILING
Gary Wright, FlatFairGary Wright, Chief Executive of flatfair, says: “It is no surprise to see Labour winning the election by such a huge margin, the country has been crying out for change and have given Keir Starmer the mandate to make that change happen.
“A clear area requiring urgent attention is housing and more importantly affordability. Let’s hope he can live up to his pledge to build 1.5m new homes in the next 5 years, only house building can fundamentally improve the affordability crisis.
“Until that happens renters will remain under huge cost pressures and deposit alternatives will provide an important choice in allowing tenants to reduce their upfront costs of renting.
“But the government must take a balanced approach around renting to ensure landlords are not put off being landlords as this would only make supply issues worse and push costs up even higher.
“We will watch Labour progress with great interest.”
LONG-TERM BOOST
Richard Pike, PheobusRichard Pike, chief sales and marketing officer at Phoebus, says: “It will be a real long-term boost for the property industry if Labour kicks off in seriousness their ambitious housebuilding programme following the March budget, when they’ve had a chance to bed in.
““We’re sincerely hoping the Government takes a good hard look at the property industry and start mandating changes to digitise our house buying and selling process, which is currently so stressful that people are loathe to do it unless they have to.”
Craig Vile, director of The ValPal Network, says: “The property market has been revving up since the beginning of the year. A cut in interest rates and the end to political uncertainty could be the things that finally put it into gear.
Craig Vile, The ValPal Network“Labour’s plans to help first time buyers with a mortgage guarantee scheme and their aim to build 1.5 million new homes are laudable but will take time.
“The housing market has proved it is resilient. A stable long-term Government, falling inflation and an imminent cut in the base rate might well be enough to unleash the pent-up demand that we know has been bubbling away for months.
“City commentators have been factoring in the possibility of a Labour Government for the last six weeks and in the City, the markets have remained steady throughout the campaign.
“The sizeable majority simply strengthens that message of stability. This could give prospective homebuyers the confidence they need to get moving.
Karl Wilkinson, Access Financial Services“Agents should prepare for action and expect a hike in activity. And they should be prepared to put in the hard work to nurture every lead generated – the competition is going to be tough but more business will be there to be won.”
Karl Wilkinson, Chief Executive of Access Financial Services, says: “With the Labour win, some landlords will be reconsidering their options. Labour said they will immediately ban Section 21 no-fault evictions, which could push portfolio landlords out of the buy-to-let market, resulting in rental accommodation becoming even more scarce and expensive.
“That said, labour’s ambitious house-building plans are good news for landlords, especially if it increases the supply of affordable social housing so that low-income households don’t have to rely on the private rental sector.”
