Financial & Legal News

INSIGHT: The Impact of Pre-Election Pledges On The Property Market

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With each party’s pre-election manifesto homing in on the property market, the resulting uncertainty amongst those looking to buy, sell or invest in property, not to mention the lack of confidence caused by a possible change of government, will inevitably cause some degree of general market slow down. Karen Piontek, associate in Pearson’s commercial property team, explains.

As more vote-buying policies emerge from each political party in the run up to 8 May, many business groups are concerned about the impact of the radical promises being made. In fact, The British Chambers of Commerce have criticised both Labour and the Conservatives, saying their housing policies took little account of "the future consequences for individuals, investors, or businesses".

As ever, the key governing factor of the property market, whether commercial or residential, is supply ‘v’ demand. Ultimately, these pre-election promises might never see the light of day, however, it’s definitely worth being prepared, so in summary here’s a round-up of the key points pledged by each main party.

Labour

  • Commitment to build 200,000 homes by 2020
  • Cut and freeze business rates for 1.5 million small businesses
  • Ban lettings agent fees and make three-year tenancies standard
  • Devolve more powers and funding to city regions and local authorities

Conservative

  • 200,000 new starter homes for first-time buyers and 275,000 additional affordable homes by 2020
  • £1bn brownfield regeneration fund spread over four years
  • Extension of the right-to-buy policy to allow 1.3 million housing association tenants the opportunity to buy their homes

Liberal Democrat

  • Commitment to build 300,000 new homes by 2020
  • Lift permitted development rights for converting office-to-residential
  • Set-up a new Housing Investment Bank
  • Introduce new ‘help to rent’ and ‘rent to own’ schemes
  • Priority to develop on brownfield and town centre sites first
  • Green Buildings Act to set new energy efficiency targets

Green

  • Build 500,000 social rented homes by 2020
  • Reduce VAT on housing renovation and repair work
  • Commitment to removing the National Planning Policy Framework (NPPF)

UKIP

  • Build one million homes on brownfield land by 2020
  • Scrapping the National Planning Policy Framework (NPPF)
  • Remove stamp duty on the first £250,000 of new homes built on brownfield sites
  • Merge planning and building control departments in local authorities
  • A statutory duty on local authorities to bring empty homes back into use.

Pearson’s commercial property experts work in close partnership with its in-house financial services team and can easily give you access to professional and strategic advice to prepare for any eventuality.

For more information, call Karen Piontek on 0161 684 6951 or email karen.piontek@pearsonlegal.co.uk.

 

Also in this issue of Insight

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.

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