The agenda is to borrow £75bn, which will be used to build new, affordable homes that will appeal to renters and first-time buyers in the private renting sector and instead encourage them to become homeowners.
Elizabeth Reynolds, 27, is experiencing the same exact problem as millions of other Londoners; she doesn’t have enough money to buy a home.
But earns too much money to be able to be considered for social housing, which has a waiting list of over a million.
So, what options does Elizabeth have? Just private renting, which has its own horror stories attached to it too.
Over the past decade, Elizabeth has had to be move over five times and is getting ready to move once again, this is due to problems like mould (experienced twice), renting prices getting higher year on year and forced evictions.
For a graduate who is moving out of student accommodation, this won’t sound too bad.
However, with an 18 month-year-old baby and a new husband, packing up your life every twelve months or so is not so easy.
“It’s interesting to see what the parties have to say when it comes to housing – we’re looking for parties with an agenda to get younger, new families into actually affordable, easier available housing.”
And this is exactly the type of voter that Labour is trying to attract with their new proposal to build 100,000 new council properties a year (an increase from 6,287).
Boost in the property market
This is meant to encourage an increase in the property market as well as making younger families property owners.
Labour has become aware that renters make up an important part of the constituency and many of them are looking for a change.
Shockingly, the number of families that are raising children in privately rented homes has doubled to nearly 1.6 million over the last decade or so.
This means that there is a staggering number of people who are prime candidates for becoming property owners but are losing their money to renting year on year.
One in five people in the whole of England rent privately, and conditions are usually nothing to boast about.
Tenants who privately rent on a reoccurring basis, face problems such as faulty electrics, outdated heating systems, black mould and damp issues.
So, it should not surprise you that a quarter of these privately let homes are in such bad conditions that they are classed “non-decent”.
Landlords also have the power to evict tenants, which has become a leading cause of homelessness throughout the country.
“The recovery in the luxury markets has been sparked in prime central London when the city’s most expensive properties start to look good value on a world stage – Lucian Cook, head of residential research at Savills.
100,000 new council houses
To overcome this, Labour promises to build 100,000 new council houses by 2024 and alongside this promises to build 50,000 new affordable homes.
If this is to be added to private housing outputs, this means that more builders and land will be needed to meet these expectations.
The Labour government will also need to deal with a skill shortage in areas such as planning and building. This means that the most realistic way to achieve this is to acquire land and new homes being built by developers and instead hand it over to social landlords.
There has been a slight decrease in developments being built in London.
This is also expected to carry on into 2020. This could be down to the uncertainty of Brexit, its effect on housing prices and the reluctance to invest.
But statistics show that house prices will soar in the new year and expected to rise a total of 25% over the next six years, which Foxtons and Savills have confirmed.
- The property market will see a surge of first-time buyers seizing opportunities to become homeowners.
- Especially as wages are set to increase by 15 per cent.
- Renters will begin to turn away from the private rental sector.
Despite all this uncertainty, the property market ahead looks prosperous as we see the first-time buyers emerge in line with income growth, and lucrative opportunities rise up for landowners and developers, which means there’s no better time to develop or invest.
Hunter Finance can use their expertise in the property field, call on a number of resources and ensure you don’t waste time on lenders who are unlikely to back you. We may be able to offer you a good deal on your finance and there are no brokers fees as we lend our own money.