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General Election: What next for residential property under Labour?

In what turned out to be an historic landslide victory, Labour was complimented by commentators for being cautious not to overpromise. 

In terms of Residential Property policy, their manifesto, along with those of the opposition parties, was hardly radical however demonstrated an understanding that, unlike Labour’s 1997 victory, this government will be inheriting at best a recovering economy.

The next challenge will be how quickly the change, which was cornerstone to Starmer’s election campaign, can happen. 

In terms of Residential Property, the Labour manifesto was again cautious, increasing non-UK Stamp Duty Land Tax (SDLT) surcharge and resurrecting Renter’s Reform. It will remain to be seen if the increase in non-UK SDLT surcharge will have any impact at all. 

An end to Section 21 “no fault” evictions will no doubt be welcomed by tenants however we have to consider what impact this will have overall in the private rental sector, given the proposed requirements for minimum energy efficiency to be in place by 2030. 

Even these changes are unlikely to happen quickly as they do not appear in the Labour ‘First Steps’.

The most controversial promise of the Labour manifesto relating to residential property was the promise to eradicate leasehold. This is a bold promise and is perhaps the most difficult to deliver. Michael Gove promised the same but quickly u-turned. However, the significant Labour majority may allow them to press forwards, albeit any change, which the voting public have cried out for, is likely to be slow and steady.

Find out more about Irwin Mitchell's residential property expertise.