New Labour Government: How will property law be affected?

Many people are wondering what Labour’s 2024 general election win means for property law, the market and conveyancing.

Labour has noted some key areas they are wishing to make changes to. These include:

• Stamp Duty Land Tax
• Building new houses
• Renter’s Reform
• Leasehold Reforms.

At David Gray, we can support you with all areas of property law. Our team of solicitors includes experts on both buying a property and selling your property.

Stamp Duty Land Tax

Stamp Duty Land Tax is required on any purchase over a certain price. You pay this tax when you buy one of the following:

• A freehold property
• A new or existing leasehold
• A property through a shared ownership scheme
• A piece of land or property transferred in exchange for payment

The threshold varies for different buyers, but is an important part of property law to understand. Currently, the threshold for residential properties is £250,000 and £425,000 for first time buyers buying a residential property worth £625,000 or less. It is £150,000 for non-residential land and properties.

Labour has currently set out that the nil rate band will be reduced to £300,000 from the current band of £450,000, while overseas buyers are predicted to be taxed an extra 1%. However, Labour have also proposed the freedom to buy scheme, consequently supporting young people moving onto the property ladder.

House Building

Labour states they plan to build 1.5 million new homes over the next five years in order to address the shortage of homes available and combat the issue of rising house prices due to high demand and low supply. They also have said they will be upgrading five million existing homes. These are ambitious targets, with at least 300,000 new homes being built per year.

This will require two issues to be addressed: the need to reform the planning system to allow for a quicker process but also the need to ensure there is enough skilled works in the construction industry to build the homes needed. There are concerns that this will result in greenbelt areas being built upon.

Renter’s Reform

Labour have suggested they wish to revive the Renter’s Reform Bill and will end no-fault evictions, i.e. section 21 and end fixed term tenancies etc. The Labour Government also wish to create a comprehensive database of landlords, ensuring increased accountability and ensuring compliance with housing standards.  The government are reviewing the discounts available for right to buy for council tenancies and protecting new council social housing.

Leasehold Reforms

Labour wishes to ban new leasehold flats and ensure commonhold is the default for apartment blocks.

The new Labour government have proposed significant changes to housing policies and property law with the aims of addressing current issues in the housing market.

Contact us for support with property law

With changes on the horizon, our solicitors at David Gray can provide expert legal advice while you navigate this complex area. If you would like to discuss property law matters further with our team, contact us on 0191 243 8167.