Leaders Romans Group Labour Party Conference Wishlist

September 19, 2024 PR Officer

It was under Gordon Brown’s premiership in 2009 that the Labour Party last held a conference as the party in government.

Since being elected in July, the new Labour government has hit the ground running in terms of pushing out its legislative agenda.  So what are the issues that matter most to the property world and where do tweaks need to be made to ensure that changes are delivered effectively?

Experts from across Leaders Romans Group (LRG) share their views below.

  1. Property sales

Opportunities for policy change: boosting the residential sales market

Kevin Shaw, National Sales Managing Director:

Voters from across the demographic spectrum voted Labour in July because they trusted Labour on the economy.

So my request to the new Labour government is, don’t disappoint those floating voters who put their faith in you this time.

From LRG’s perspective, the property market is strong enough to withstand some change. And our landlords and homeowners have had some time to prepare for changes to Capital Gains Tax, Inheritance Tax and new leasehold legislation.

But a curveball which put up taxes further, especially Stamp Duty which is higher than in most comparable countries, would be bad news for the market’s recovery. Top of my wish list for future policy is a reduction in the punitive level of Stamp Duty – particularly over £500k which is holding back mobility in the housing market and affecting downsizers.

The Labour government has said repeatedly that it is committed to economic revival, and the health of the property market is vital to the success of the UK economy. This is partly because the domino effect from a house sale is greater than that of any other purchase: from professional fees to redecoration and the purchase of new furniture the total spend by new home owners – and therefore the benefit to the economy – far exceeds the house price.

Under the previous administration, it felt that the government, in its constant stalling of new home development and disincentivising of the private rented sector, had failed to understand the seismic impact of the property market on the economy.

It’s not typical for the property industry to welcome a more left-wing administration, but Keir Starmer’s team went to considerable lengths to win business support. Long may this continue.

Opportunities for policy change: new homes sales

Tim Foreman, Managing Director of Land and New Homes:

Within a month of being elected, the new government put in place a revised NPPF for consultation and laid out plans for a Planning and Infrastructure Bill.  That’s a good start for a government committed to building 1.5 million homes in its first term in office but it can’t stop there.

The government’s housing targets, at 370,000 homes per annum, are very ambitious – particularly concerning that private housing starts plummeted by 32% on 2023 levels.

So will Labour’s planning reforms deliver new homes – or just new planning permissions?

It is encouraging that the new government appreciates the important role that housebuilding plays in the wider economy. But it is adding to existing pressures by making demands such as 50% affordable housing and showing little interest in in providing incentives to kick-start the market – such as a new form of Help to Buy.

In the context of increased construction, financing and labour costs, some form of fiscal support is necessary and so I hope decisions are made at the conference on how October’s Budget can provide this.

Opportunities for policy change: supporting first time buyers and young families

Tim Foreman, Managing Director of Land and New Homes:

While there is a lot in the revised NPPF which is commendable, there are some serious omissions.

Perhaps the starkest omission is very little to support first time buyers and young families.  Understandably the Labour government is keen to provide affordable homes for those most in need. And 50% affordable housing as a proportion of 370,000 new homes per year, of which ‘a focus on affordable rent’ is considerable. 

But this doesn’t provide for young and not-so-young first time buyers; couples keen to start a family but unable to move on from a one bedroom flat; families bursting out of a three bedroom terrace and desperate for a decent-sized garden.

Also it won’t help those new homes sell, because as everyone in the housebuilding industry knows, the most successful scheme is one of mixed tenures and property sizes – we want to have something to offer everyone who comes through our sales centre doors, not just the extremes of rich and poor.

The government must use policy-making time to address not just housing numbers, but housing requirements and preferences – otherwise we may see 370,000 more planning permissions but not necessarily the homes that people want to buy.

Opportunities for policy change: supporting shared ownership

Peter Hawley, Director, SOWN

As the Labour Party prepares for its first conference as the party in power since 2009, it is absolutely imperative that that it addresses the policy void in relation to first time buyers.

In all its housing and planning policy announcements recently – the Labour Party manifesto, the outline of the future Planning and Infrastructure Bill, Angela Rayner’s Statement to the House of Commons, and the revised NPPF – shared ownership has not been mentioned once.

Shared ownership is one of the most effective means of first time buyers getting onto the housing ladder. Since its inception four decades ago it has become an established fixture in the housing landscape. Today approximately 202,000 households in England live in shared ownership homes. In 2021-22 alone 19,386 new shared ownership properties were delivered, according to the English Housing Survey. This is the highest number since records began in 2014-15 and a 14% increase on the previous year.

There is an urgent need for more support for first time buyers and the omission of both from any major Labour housing announcements suggests that it is in danger of being overlooked, especially as considerable emphasis is being placed on social rent in relation to S106 agreements.

Helping first time buyers and others to get on to the property ladder is vital not only for the individuals involved but, as government has been quick to point out, central to the country’s social and financial prospects. Shared ownership is a great product and there is great demand for it – but more needs to be done at a government level to fully realise this potential.

2. Planning

Opportunities for policy change: national policy guidance on public transport and parking

Nigel Booen, Director of Design, Boyer:

We support the move away from district-wide design codes (which were largely unnecessary, resource-hungry and complicated).   The contentious removal of paragraph 130 from the NPPF and the move towards a vision-led approach to transport (rather than predict and provide) suggests a move towards more sustainable forms of transport, active travel, green routes and less parking.   Whereas the former is laudable the latter simply creates a problem.  A vision of sustainable travel does not necessarily mean less cars in the short term.

Opportunities for policy change: the removal of ‘beauty’ from the NPPF

Nigel Booen, Director of Design, Boyer:

Removing ‘beauty’ from the NPPF is a step in the right direction because it removes a subjective judgement.  But are we then left with ugliness?  By some means we need to judge aesthetic quality with some consistency. At least the concept of “beauty” started a debate as to how the industry might describe and control design quality and this conversation should continue in some context.

Opportunities for policy change: provision of 50% affordable housing in new developments

Lawrence Turner, Director, Boyer:

We support the Government’s aspiration to increase affordable housing provision to up to 50% on Green Belt and Grey Belt sites. However, careful consideration must be given to the viability implications that may arise from this. In some areas land values will not be able to viably support 50% affordable housing, particularly with a strong emphasis on social-rented provision, without undermining the quality of development and whilst also importantly still incentivising landowners to release land for development.

Opportunities for policy change: the use of compulsory purchase to bring forward affordable housing

Lawrence Turner, Director, Boyer:

Existing CPO powers are expensive and time consuming for local authorities to undertake. Many local authorities are currently underfunded and under-resourced, without the expertise readily available to proactively engage in CPO of land for affordable housing. The CPO process is also complex and protracted, taking several years to complete. For these reasons, involving CPO will not speed up housing delivery.

Opportunities for policy change: Duty to Cooperate changes in NPPF

Lawrence Turner, Director, Boyer:

We support the proposed changes to increase effective cooperation between local authorities to meet unmet housing needs. We consider the NPPF should be amended further to support effective co-operation on strategic planning, as well as key infrastructure and environmental issues. We would also welcome further clarification on the procedure for the preparation and timescales for preparing Spatial Development Strategies (SDSs) by mayoral authorities.

Opportunities for policy change: local plan ministerial intervention

Lawrence Turner, Director, Boyer:

We support the Government’s prosed changes plan-making which are intended to ensure that it is swift and proportionate and that the Secretary of State has the flexibility to respond to a range of scenarios. We would however welcome greater guidance and examples on when and how the powers might be used. At the present time, Government intervention is sometimes seen as an empty threat by local planning authorities (LPAs). To ensure that proper plan-making is undertaken by LPAs, clear examples of how and when intervention might take place will help encourage LPAs to properly engage with the NPPF agenda.

Opportunities for policy change: water supply / water stress

Lawrence Turner, Director, Boyer:

To meet the Government’s objective to boost housing delivery, the provision of water is essential. We would encourage better links between the service providers, developers and LPAs. Without this, new housing is often delayed or limited due to lack of water infrastructure provision or capacity in the network. To this end, we support in principle the proposed amendments to the Planning Act 2008 to update the definition of NSIP to incorporate water infrastructure projects.

3. Build to Rent

Opportunities for policy change: fiscal support for BTR

Andy Jones, Group Director of Corporate & BTR:

The rental market has seen considerable upheaval so far this year, with the Conservatives’ Renters’ Rights Bill battling its way through Parliament in the first half of the year (albeit not making it to the Statute Book) followed by, just days after the general election, the Labour Party’s Renters’ Rights Bill.

In the midst of all this the Build to Rent (BTR) sector has continued to flourish but it needs to grow at an even faster pace to meet outstanding demand in the sector.

More specifically, with the new Labour government’s first Budget set for 30 October, it is important that government policy addresses fiscal issues in relation to BTR.

Our first concern is Stamp Duty: Multiple Dwellings Relief (MDR) was originally intended to support the supply of private rented housing by applying a fair rate of Stamp Duty for the average price of units in a housing development. However, MDR has not worked as intended since the introduction of the Stamp Duty surcharges for additional dwellings and overseas buyers, which has disproportionately affected developments outside of London and the South East. Fixing MDR will improve the viability of much needed new BTR homes across the country. Alternatively, the industry needs a Stamp Duty exemption for transactions of over 100 units.

Another ask is for zero rate VAT on repairs and maintenance of residential buildings. The tax system should not create barriers to people improving the safety, quality, or energy efficiency of their homes. Furthermore, by improving the investment proposition for long term investors in residential asset classes more BTR units can be developed. If the cost of this measure is challenging in the short term, the government should initially address the shortcomings of the current VAT relief for Energy Saving Materials installation.

Thirdly, we would like to see zero-rated VAT on construction. In the Treasury’s view, sales of residential buildings under construction can only be zero-rated for VAT once they have reached a certain stage of construction, known as “golden brick” – the point at which a housebuilder or other developer is building homes that are to be owned long-term by a third party. We support the BPF, which is requesting that the developer be able to recover of the VAT they themselves have incurred in construction.

These points and more and explained in the BPF’s manifesto for housing, Building for Generations.

Opportunities for policy change: BTR and planning

Andy Jones, Group Director of Corporate & BTR:

We welcome Green Belt release and the development of new towns as a means of providing more BTR suburban communities – providing that this executed strategic and done in such a way that is sympathetic to the environment and adds value to the community.

We are also aware that BTR is increasingly providing much needed homes for older people. There is a huge void in terms of suitable accommodation for an aging population and the rise of Integrated Retirement Communities (IRCs) sits very well with the evolving model of BTR suburban communities. More should be done (fiscally and otherwise) to encourage this. 

There have been rumours that the government may change the law on permitted development rights (PDR). I would warn against this. As much of our clients’ work demonstrates PDR, specifically retail to resi and commercial to resi, is ideal for the provision of BTR homes, which then help enliven communities and make good use of redundant buildings.

Finally, as we have said previously, there is a stark absence of BTR policies from local plans which is delaying the take-up of BTR schemes, specifically outside major city centres.  We would like to see not only more policies which encourage BTR but also for local plans to mandate a minimum quota of BTR housing, meeting government objectives by encouraging higher density developments close to transport links.

4. Rental reform

Opportunities for policy change: rental reform

Allison Thompson, National Lettings Managing Director of LRG:

At the Labour conference, we would like to see several key reforms addressed to ensure a balanced and functional private rented sector.

Firstly, the immediate abolition of Section 21, while offering tenants more security, should not come without significant court reform. Without a faster, more efficient system for resolving issues such as rent arrears or anti-social behaviour, landlords will face immense challenges in managing their properties fairly. The current court backlog is already a burden, and further pressure will only slow justice for both tenants and landlords alike.

Additionally, the nuances around advance rent payments require reconsideration. For many tenants, particularly overseas students or those without traditional references, the option to pay rent upfront is crucial to securing accommodation. Banning such payments could inadvertently restrict access to housing for vulnerable groups.

We also strongly urge the government to adopt a phased introduction of the Bill. A cliff-edge approach risks creating confusion and disruption for both landlords and tenants. A gradual implementation timeline, starting with new tenancies, would allow the sector to adapt smoothly to the new regulations.

Finally, while we support improvements like Awaab’s Law, financial assistance and clearer guidance should be provided to landlords managing older properties. Meeting strict repair timelines could be a challenge without appropriate resources.

5. Block management

Opportunities for policy change: Leasehold reform – regulation of managing agents

Robert Poole, Director, Glide (part of LRG):

There has been a growing call for tighter regulation of managing agents to ensure professionalism, eliminate rogue agents, and improve accountability. This includes mandatory qualifications, continuing professional development (CPD), and adherence to a code of practice. With no current barriers to entry, the property management sector has a mix of service standards. Glide would see this regulation enforced, resulting in a more level playing field and enhanced trust from leaseholders​.

Opportunities for policy change: Leasehold reform – simplifying the Right to Manage (RTM)

Robert Poole, Director, Glide (part of LRG):

The current Right to Manage process is seen as overly complex and costly. Leaseholders seeking to take control of the management of their blocks often face financial and legal hurdles, including covering the costs of the landlords’ legal fees. Proposed reforms to the RTM process aim to streamline the criteria, reduce costs, and make it easier for leaseholders to gain control. These changes could enable Glide to offer a more straightforward service to leaseholders interested in taking over management​.