How the landslide Labour victory could impact you

The recent UK general elections, held on Thursday, 4 July 2024, have resulted in significant political shifts, with Labour securing a landslide victory, marking a historic loss for the Conservatives.

This change sets the stage for potential impacts on the property and mortgage industries, we explore some of the commitments outlined by Labour in their pre-election promises.

Support for Renters: Labour has pledged substantial support for renters, including the intent to ban no-fault evictions, aiming to provide greater security for tenants. Furthermore, they plan to expand ‘Awaab’s Law’—currently applicable only to social housing—to the private rental sector. This law mandates landlords to promptly address and rectify any reported health hazards, ensuring safer living conditions for tenants.

Empowerment for Tenants: Labour has pledged to make renting fairer, more secure, and more affordable. They have plans to immediately abolish Section 21 ‘no fault’ evictions, prevent private renters being exploited and discriminated against, empower them to challenge unreasonable rent increases, and take steps to decisively raise standards

Boosting First-Time Buyers: The new government aims to assist 80,000 additional people in becoming homeowners through a comprehensive mortgage guarantee scheme. This initiative will prioritise local residents in new developments, potentially making it easier for them to purchase their first homes.

Freedom to Buy Mortgage Guarantee Scheme:
Targeting first-time buyers with smaller deposits, this scheme is designed to continue and expand upon the existing mortgage guarantee framework established by the Conservatives. The scheme supports the availability of 5% deposit mortgages, backed by a government guarantee.

Commitment to Low Mortgage Rates:
Labour has also expressed a dedication to keeping mortgage rates as low as possible, which could influence overall affordability and accessibility for prospective and current homeowners.

We are already seeing some of the major lenders make reductions across their mortgage products and many analysts expect this trend to continue, up to and after the Bank of England’s interest rate decision in August. 

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