Housing has rarely been far from the political agenda in recent years, but the arrival of Andy Burnham in Downing Street could usher in a new chapter for the property market.
As Mayor of Greater Manchester, Burnham built a reputation for placing housing, planning and regeneration at the heart of economic growth. Now, as Prime Minister, many of the ideas he championed locally could begin to influence policy nationally.
While the government’s detailed housing programme is still taking shape, Burnham’s track record – together with reforms already under way – provides some useful clues about the issues most likely to shape the property market over the coming months.
More homes and faster planning
Few would argue with the need to build more homes, and Burnham has consistently linked housing delivery with economic growth. During his time in Manchester, he championed regeneration, brownfield development and greater devolved powers over planning.
The Home Builders Federation has already urged the new Prime Minister to build on that experience nationally, pointing to Greater Manchester’s relatively strong housing delivery in recent years despite a difficult market. It is calling for faster planning decisions, greater support for SME housebuilders and improved access to home ownership, arguing that increasing supply would create jobs, unlock investment and improve affordability.
Helping people move more often
Building more homes is only part of the answer. Making it easier for people to move is equally important.
The government has already begun reforming the homebuying process through measures designed to improve the flow of information between buyers, sellers and conveyancers, introduce greater use of digital property information and explore earlier commitment between the parties. Together, these reforms are intended to reduce delays, cut the number of transactions that fall through and create a smoother moving process.
The bigger ambition, however, is to encourage people to move home more often. A faster, more reliable transaction process gives buyers and sellers greater confidence to make life-changing decisions, helping first-time buyers onto the property ladder, growing families move up and older homeowners downsize when the time is right. A more mobile housing market benefits everyone.
Property taxes remain the biggest unknown
During his political career, Burnham has expressed interest in wider reform of property taxes, including alternatives to the current council tax and Stamp Duty systems. He has also discussed the concept of a Land Value Tax and questioned whether Capital Gains Tax should move closer to income tax rates. Meanwhile, the government’s proposed High Value Council Tax Surcharge on homes worth more than £2 million continues to progress through consultation.
None of these measures form part of a confirmed government programme and ministers have yet to announce any changes. However, recent history has shown that speculation alone can influence the housing market. Ahead of last year’s Budget, uncertainty over possible tax reforms prompted many buyers, sellers and investors to delay decisions while they waited for clarity. Sometimes, the conversation itself can affect the market.
Continued focus on the private rented sector
Around one in five households now lives in privately rented accommodation, making the sector an increasingly important part of the UK’s housing market.
As Mayor of Greater Manchester, Burnham consistently argued for higher standards in the private rented sector, backing initiatives such as the Good Landlord Charter and calling for stronger protections for tenants. That philosophy sits comfortably alongside reforms already under way, including the Renters’ Rights Act, proposed changes to Energy Performance Certificates and the government’s Warm Homes programme.
While the detail and timing of future reforms remain subject to consultation, landlords should expect continued emphasis on compliance, property standards and energy efficiency.
Looking ahead
The new government is still in its early days and many of its housing policies remain in development. Nevertheless, housing will remain firmly at the top of the political agenda.
Whether you are buying your first home, planning a move, considering an investment or managing a rental portfolio, the months ahead are likely to bring further announcements and, as those details emerge, understanding how they could affect your own property plans will become increasingly important.
