After a tumultuous few years, there could be big changes on the horizon for the property market with the new Labour government, which will affect demand at estate agents.
Earlier in July, Keir Starmer came to power, with plans to overhaul the industry in order to help young people climb the housing ladder.
Labour’s pledges include reverting the nil rate band for stamp duty back to £300,000, rather than maintaining the £425,000 it currently is.
Although this will mean people spending more than £425,000 on their first property will now have to pay tax, it will still allow those purchasing more affordable housing to use all their deposit on their house, instead of paying the taxman.
For international buyers, the government intends to make them pay an additional one per cent on their stamp duty fee.
Labour will also introduce a Freedom to Buy scheme, which will involve the government acting as a guarantor. This is aimed at encouraging more banks to accept low deposits, meaning first-time buyers (FTBs) do not have to save as much money to become homeowners.
It hopes this will help 80,000 FTBs get on the property market within five years.
Starmer also intends to oversee the building of more than 1.5 million new houses over the course of parliament.
This is to encourage more young adults to move out of their parents’ homes, with 40 per cent of those aged between 15 and 34 in the UK still living with their mums and dads. This amounts to around 6.7 million people.
When it comes to tenants, the new government will bring back the Renter’s Reform Bill, putting an end to no-fault evictions. It also wants to eliminate bidding wars in the lettings market, so that renters are not forced to pay sky high prices due to a lack of supply.
