What Did the Labour and Conservatives Pledge at Party Conferences?
Over the past few weeks, Conservative and Labour cabinets descended on the North West for their annual party conferences.
Both parties had much to say in the run-up to next year’s General Election.
UK housing featured heavily in both conferences, with each party pledging substantial support to the country’s housing market.
We’ll cover their main talking points regarding the UK property sector and analyse what this could mean for buy-to-let investors.
What Did the Conservative Government Pledge for UK Property?
Interestingly, the housing sector was missing from Rishi Sunak’s speech during the Conservative Party Conference. Instead, he focused on investing in northern regeneration and transport infrastructure and banning smoking.
However, Levelling Up Secretary Michael Gove focused on the Conservative plans for UK homes moving forward.
He promised that the government would protect Britain’s “green belt”. He called the Conservative party one of “beauty and nature”. In addition, he pledged to “build in the hearts of towns and cities and on brownfield land, because that cuts commuting times, revitalises high streets and protects the Green Belt.”
Gove highlighted the importance of a robust rental sector in a separate speech. He said:
“You can’t have an effective housing market, or provision of the homes we need, without having a variety of different types of tenure.
“A route to homeownership, a private rented sector that facilitates labour mobility among other things, and socially rented homes in order to help people who are, for whatever reason, eligible for, and deserving of, that level of support.”
What Did Labour Pledge for the UK Property Market?
Whereas the Prime Minister omitted the housing sector from his speech in Manchester, Sir Keir Starmer spent considerable time stressing Labour’s commitment to new homes.
Starmer asserted Labour would “build a new Britain” and stated, “Where there’s good land for affordable homes, we’ll get shovels in the ground, cranes in the sky and build the next generation of Labour new towns.”
Starmer also pledged to create the “next generation of Labour new towns”, like the party did when Clement Attlee was leader. This would create new communities with green spaces, good transport links and thriving high streets.
He also hit back at the notion that Labour was “tearing up” the green belt. Instead, he promised to build on disused grey urban areas like car parks and wasteland, stating that “this cannot be justified as a reason to hold our future back”. Why not read more about why you should consider to invest in UK property in 2023?
Things to Consider About the UK Housing Market
While both parties approached housing differently, one thing is clear: a thriving housing and rental market is good for the UK economy.
Inflation and interest rates have slowed housing price growth over the last year, and supply for renters is down. For more details, take a look at our UK interest rate forecast.
Labour, in particular, has highlighted the necessity of new homes to help balance the supply and demand issue. Essentially, renters are paying higher prices because they are competing for fewer available properties.
People are still paying a higher percentage of earnings on living costs, suggesting that investors can enter the market and enjoy higher rental yields.
However, the economy has shown signs of recovery, with inflation falling two months in a row. In response, the Bank of England halted their interest rate hike for the first time in 2023.
If the country continues to move towards lower inflation, the housing market should get more active, which would be good news for capital appreciation on your property in the next few years.