Much has been made of the Conservative manifesto, its lack of costing and so called ‘dementia tax’ over the last few weeks. But what does the manifesto really say about housing, property, landlords and future taxation?
Going against decades of Tory policy, Theresa May has promised to build a ‘whole new generation of social housing’. This is because it is felt that private homebuilders are not capable of meeting demand over the next ten years unless there is participation from social and municipal providers.
This appears to be a departure from the classic free market solution they have generally proposed to the housing situation in the UK. Even as recently as February, the Conservatives were drawing up white papers that focused almost solely on private- sector housebuilders. However, the new manifesto appears to promise new council housing deals with ambitions development projects. They even want to let councils purchase land at lower prices.
However, there is a catch that brings this in line with more traditional housing policy. These are fixed term social houses, which means they will soon return to the market and will be sold after 10 to 15 years with the right to buy option built in.
So the Tories policy won’t actually do anything to reverse the decades old policy of being able to buy your council home, which has resulted in 1.4million fewer social housing properties available now than in 1979. However, cash raised from the sales will go to fund further development.
Their pledge is to build a million homes by 2020 and a further 500,000 by 2022. How this will affect the market remains to be seen.
As they had already outlined earlier in the year, they are going to encourage security for good tenants and ensure landlords provide them with longer tenancies. However, they don’t directly address how this will be done, although longer contracts in general maybe an option.
Fair debt is another key part of the manifesto, creating breathing space for those in problem debt and allowing them to apply for legal protection. This would give some relief to vulnerable households who are caught in debt.
There are also plans to enshrine in law landlords equality measures, making it illegal to deny service based on race or religion.
There is also a commitment to make all homes more energy efficient, bringing them all up to an E standard by 2018-20.
If you’d like to know more about how these policies might affect the market in the Norfolk area, then get in touch with a member of the Agile team to discuss it.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
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