Unpacking the King’s Speech: what Labour housing policy means for the property market

On Wednesday, July 17, King Charles delivered a pivotal speech at the state opening of Parliament, outlining Sir Keir Starmer's agenda for the current session. This event has sparked widespread interest and diverse opinions on the new government's priorities and commitments.
In this article, we’ll share a few perspectives on the pressing issues facing the London housing market.

In King Charles' speech, ‘Rebuild Britain’ emerged as the central theme, with a significant emphasis on housebuilding and the essential infrastructure supporting it. Crafted by the new government, these plans build on Labour’s manifesto promises, which we summarised here. Key housing topics include building, renters' reform, leasehold reform, and energy efficiency.

Ambitious infrastructure overhauls were also announced, such as nationalizing railways, which would (if successful) help ensure these new homes are not only built but also viable and sustainable. This could help weave housebuilding plans into the wider strategy for economic growth.

So yes, in terms of content, this speech did not announce anything Labour had not already promised. However, that’s not so much the point of this event. The King’s speech is more about the tone a new government wants to set, and this message of change to a place of greater stability is very important right now.

Richard Merrett, Managing Director of Alexander Hall – our partner mortgage firm, said, “Between the overwhelming landslide victory, and the fact that – irrespective of anyone’s party politics – it felt like the country was just ready for change, the markets like stability… We are certainly seeing positive sentiment in the market. The Foxtons sales performance didn’t slow down in June, and I think that will continue into the second half of the year.”

Perception is key

Read: What a Labour win means for housing

Foxtons CEO Guy Gittins stated, “It’s promising to see that our new Labour Government has positioned planning reform and housing supply at the forefront of its intentions for the property market.

“The setting of new delivery targets, coupled with a more streamlined planning process, should help to provide the structure required to increase the supply of new homes reaching the market.

“Of course, these initiatives are all well and good but it’s housebuilders that deliver new homes, not the Government itself. So it will be interesting to see how the Government intends to incentivise housebuilders to increase their stock delivery. “Freeing up wrongly classified areas of the green belt should also help with respect to increased supply, although this is a fiercely contentious area that is likely to be met with ferocious objection, as has been the case previously. How the Government plans to adjust public perception will be pivotal if they are to deliver where other Governments have so far failed.

“It’s also imperative that the Government gives serious thought as to how they can encourage new landlords to invest within the private rental sector, as this is sorely needed if we are to address the supply and demand imbalance that has been so prevalent over the last few years.

“All in all, positive news for the property market which should further add to the momentum that has been building so far this year and help fuel what is shaping up to be a very buoyant final six months.”

A promising start encourages the market

Merrett said, "While it’s still very early days in terms of a new government tenure, what we’re hearing is positive noises, and sentiment will be absolutely key as Labour work to restore trust, especially around the economy. Building homes is the right message. Stock is the biggest challenge that we’ve had in the housing market for a generation. However, these are targets that have been set and missed by previous governments, so we will need to get to the crux of how they will achieve this.

"What I’d like to see is not just that we’re going to build, but actually how they will enable us to develop existing housing stock, like encouraging downsizing – or right sizing – to release locked-up equity and encouraging the regeneration of commercial units.

"So it’s important to see how they will achieve it, but they are saying the right things. In lender news, since the election we’ve seen a number of major lenders reduce rates and HSBC has relaxed LTV banding and made them more flexible for potential borrowers. All positive changes which, in my opinion, we will see building through the end of summer."

Making a start

So if you’re feeling the momentum to achieve your goals in property, it’s safe to say you’re not alone. And we have the experts to help you make the most of the market.