Within its 125-page manifesto, Keir Starmer said he would work with local authorities to give first-time buyers first dibs on homes and limit developments being sold off to international investors.
The wannabe Prime Minister also vowed to “introduce a permanent, comprehensive mortgage guarantee scheme, to support first-time buyers who struggle to save for a large deposit, with lower mortgage costs”.
It follows a torrid time for would-be-buyers as they remain stuck in the rental market because of wage stagnation and economic turmoil which has impacted mortgage rates.
Labour, which is currently leading the polls, previously promised to reform planning rules to build 1.5m more homes over the next Parliament, a major selling point amid Britain’s housing crisis.
Starmer reaffirmed this promise today and vowed to “get Britain building again”.
The manifesto read: “The dream of homeownership is now out of reach for too many young people. The Conservatives have failed to act even though the housing crisis is well known to be one of the country’s biggest barriers to growth.”
‘Labour victory to lead to significant increase in housing supply’
Labour’s housing shake up has been generally well received amongst property big wigs.
Melanie Leech, chief executive of the British Property Federation said: “Labour is right to focus on improving the planning system as the key enabler of growth.
“Introducing effective strategic planning means that decisions are made at the appropriate national or regional level, rather than just locally, which will allow us to deliver more homes against a clear target and also provide the logistics infrastructure and business spaces we need to support sustainable communities.
She added: “Measures to ensure up-to-date local plans are in place and a new approach to ‘grey belt’ land are also welcome, as is the commitment to more local authority planners so that existing projects can be unblocked, and local authorities are better able to engage with our sector to provide for future needs.”
Starmer also promised to abolish Section 21 ‘no fault’ evictions, pressing ahead with the Renters Reform Bill.
Antony Codling, managing director at RBC Captial Market, said a Labour victory is “likely to lead to a significant increase in housing supply over the coming five years.”
“A rising tide of housing supply that we think will also lift the share prices of the UK housebuilders,” he added.
Meanwhile, the Conservatives have committed to building 1.6m homes over the next parliament. The pledge comes despite the party failing to deliver on their promise of delivering 300,000 homes annually in the last four years.