10 New Labour Policies For Property Investors || Impact Analysed

Summary

This video discusses 10 labor policies that will impact property investors and developers. Key topics include Labor's pledge to build 1.5 million homes, changes to permitted development rules, the Renters' Charter, regulation of short-term lets, and leasehold reform. The video also covers green policies, mortgage guarantee schemes, and corporation tax stability. The host emphasizes how these policies could affect property investment strategies and offers insights into navigating the new regulations.

Takeaways

• 🏗️ The Labour party has pledged to build 1.5 million homes during this Parliament, focusing on social and affordable housing, which could impact private sector landlords and developers.
• 🏘️ Labour's commitment to social housing may reduce the need for state-funded rents in the private sector, potentially affecting private landlords' income streams.
• 🛠️ The planning system is a significant hurdle for developers, and Labour's promise to cut through bureaucracy could be a mixed bag, with potential for both positive and negative outcomes.
• 🏙️ Labour's potential changes to permitted development rights could require social housing provision in new developments, affecting the viability of some projects.
• 📜 The Renters Charter proposed by Labour could include significant changes for landlords, such as scrapping Section 21, allowing pets, and giving tenants the right to make reasonable alterations.
• 🐶 Jeremy Corbyn's proposal for tenants to have the right to have pets is expected to be part of the Renters Charter, though details on implementation are unclear.
• 🏡 Labour's policies on short-term lets, like Airbnb, may include more regulation and licensing, impacting landlords who rely on this type of rental income.
• 💰 There are no plans for rent controls under Labour, but there is a possibility of rent capping, which could limit rent increases for landlords.
• 📜 Leasehold reform is on the agenda, with potential changes to the rights of leaseholders, particularly affecting buy-to-let investors and professional landlords.
• 🌿 Green policies are back on the agenda, with a focus on energy efficiency in rental properties, potentially requiring EPC grade C by 2030.
• 💼 Corporation tax rates are expected to remain stable during this Parliament, providing some predictability for property investors and developers.

Q & A

What is the primary goal of Labor's pledge in the housing sector?

Labor's primary goal is to build 1.5 million homes during the Parliament, which is more homes than have ever been built in previous decades, including the 1950s and 1960s.

What type of housing does Labor aim to increase with their housing policy?

Labor aims to increase social and affordable housing, as stated in their manifesto, which is a significant shift from previous policies.

How might the increase in social housing affect private landlords?

If Labor builds more social housing, they may need less from the private sector, potentially reducing the demand for private landlords' properties and affecting their rental income.

What challenges might developers face in fulfilling Labor's housing pledge?

Developers might face challenges such as labor shortages, lack of interest from private developers due to unprofitable development schemes, and the complexity of the planning system.

What is the potential impact of Labor's planning reforms on property development?

Labor's planning reforms aim to cut through bureaucracy and emphasize building. However, the effectiveness of these reforms is uncertain, and they may face resistance from local governments and communities.

How might Labor's policies affect the viability of permitted development schemes?

Labor might require developers to provide social housing under permitted development schemes, which could affect the financial viability of some projects.

What changes can property investors expect under Labor's Renters Charter?

The Renters Charter may include the scrapping of section 21, allowing tenants to have pets, and giving tenants the right to make reasonable alterations to a property, among other changes.

What is the potential impact of Labor's policies on short-term lets like Airbnb?

Labor may introduce more regulation on short-term lets, potentially affecting the profitability of landlords who rely on this type of rental.

What is the status of rent controls under Labor's policies?

Labor has rejected rent controls, but there is a possibility that they might introduce rent capping, which would limit the rate of rent increases.

How might leasehold reform affect property investors?

Leasehold reform could make it easier for leaseholders to extend their leases or buy the freehold, but the financial implications for buy-to-let investors and corporate landlords might be less favorable.

What is the potential impact of Labor's green policies on rental properties?

Rental properties may need to reach a minimum EPC grade C by 2030, which could impose additional costs on landlords to improve energy efficiency.

What is the proposed mortgage guarantee scheme, and how might it benefit first-time buyers?

The mortgage guarantee scheme allows first-time buyers to put down a 5% deposit, with the government guaranteeing the next 15%. This could make it easier for first-time buyers to enter the property market.

What is Labor's stance on land banking, and how might it affect developers?

Labor may introduce measures to penalize developers who do not build out their planning permissions within a certain timeframe, potentially affecting their ability to hold land for future development.

What is the outlook for corporation tax under Labor's policies?

Labor has promised stability for corporation tax rates during this Parliament, with rates of 25% for profits above £250,000 and 19% for profits below that threshold.