Controversial:  Labour Party proposed housing reforms

Controversial: Labour Party proposed housing reforms

Britain’s Labour Party has proposed reforms to the housing market, but the proposals have turned controversial and have raised many questions among industry stakeholders. The plans were proposed by the Labour Party leader Sir Kier Starmer and shadow housing secretary Lisa Nandy. According to the proposal, agents would be banned from selling new homes to anyone who has previously owned a home. First-time buyers will get a shot at buying new properties on priority.

However, many industry experts and stakeholders have slammed the proposal and labeled them as unworkable and unfair.

According to Jonathan Rolande from the National Association of Property Buyers, Labour’s plans are made with good intentions. They can be seen as positive steps to intervene in the property market, re-balance it, and make it fairer. But he has some doubts because Government interventions in the industry have failed in the past, worsening the already difficult situations.

The proposal raises some practical questions.

The proposal raises some practical questions.

What if a seller sells an earmarked property to a buyer not purchasing for the first time? Will the deal be struck down as illegal?

Is it mandatory for the first-time buyer to live on the property?

Once it becomes known that the market offers limited opportunities and low prices, who will be interested in building new properties?

Will the lower price of the property be reflected in the land acquisition cost?

The broader opinion is that since the system already favors first-time buyers, why should any party indulge in such moves which they know will trigger debates and controversies?

First-time buyers are already getting a significant discount on stamp duty on a 250,000 home, which amounts to zero liability for them. This compares to a stamp duty of 7,500 for a second-time buyer and 12,500 for an overseas investor. Why not tinker with these numbers can to give the first-time buyer more advantage?

There is also a growing concern about the government’s inability to keep pace with the

There is also a growing concern about the government’s inability to keep pace with the

house-building program targets. The current government recently scrapped the housebuilding target, saying targets were advisory now, giving rise to suspicions that they are slipping badly.

More people are vying for the limited number of properties as population growth and household formations influence the shortage of properties. The shortage of properties leads to spiraling prices and unaffordable rents, as well as queues for properties and people bidding for rental properties before they have even seen them. This impacts other vital areas, including health, social mobility, family structures, and the country's overall economy.