Graham Flint, managing director at Oxfordshire housebuilder, Pye Homes, looks ahead to the General Election and outlines his company’s own wish list for the next UK government.
As we rapidly approach General Election Polling Day, it’s good to hear all the major parties mapping out their policies and pledges when it comes to housebuilding, planning and regeneration.
All three of the main parties have, quite rightly, set targets to address the urgent need for new build homes – the Conservatives pledging to build 1.6 million homes in England through the next parliament, Labour says it will deliver 1.5 million new homes in England over the next five years, while the Liberal Democrats have set an equally ambitious target of 380,000 new homes a year across the UK, including 150,000 social homes.
When it comes to utilising brownfield sites – a key element for any construction company – the Conservatives have also pledged to fast-track brownfield residential developments in cities, while Labour said it will look at fast-tracking approval of urban brownfield sites, prioritising the release of ‘grey belt’ land. The Lib Dems have focused on land that is lying dormant, and want to introduce ‘use-it-or-lose-it’ planning permission for any developers refusing to build.
At Pye Homes, we welcome any policies and pledges which will help boost the housing sector and address the estimated shortage of 4.3 million homes in the UK (according to a recent survey by Bloomberg UK).
It’s also good to hear the announcement by the Conservatives of a Help to Buy Scheme, and a similar ‘Freedom to Buy’ initiative by Labour; more help is drastically needed to help first-time buyers get their feet on the property ladder, and such initiatives, coupled with the Conservative pledge to increased the Stamp Duty threshold for first-time buyers to £425,000, will go a long way to doing that.
We are also pleased to hear the Liberal Democrats and Labour both pledging to reform planning outcomes to address the shortfall in the number of new homes being built.
However, successive governments have known that too few homes are being built, and have subsequently set annual targets that are almost impossible to achieve. If we are to ever hit these targets and solve the UK’s housing shortage, the next government needs to work with housebuilders such as Pye Homes and listen to the people who live and breathe the industry.
With that in mind, Pye Homes has drawn up its own election ‘wish list’ of policies and pledges which we would like the next government to consider – and ideally implement:
- Reinvigorate the first-time buyer market with a new scheme – More help is drastically needed to help first-time buyers get their feet on the property ladder. According to Zoopla, the average first-time buyer is now looking at properties costing an average of £244,100 – meaning a 20% deposit would be £48,820, a figure which varies depending on each region in the UK. The government’s Help to Buy scheme ended on March 31st, 2023, and the current Mortgage Guarantee Scheme only runs until June 2025.
- Extend the Stamp Duty tax relief to encourage more people to move – The current Stamp Duty Land Tax (SDLT) relief is on the first £425,000 on properties costing up to £625,000, for first-time buyers. This will remain in place until March 31st 2025, and the current government wants to extend this – however Labour, if elected, would allow the threshold for stamp duty to fall back to £300,000 in 2025. We want to see that extended indefinitely to give house buyers, in particular first-time buyers, every assistance possible.
- Reform the planning system to allow developers to deliver the much-needed housing targets – The current planning system in England is ‘plan-led’, with responsibility falling to District Councils and LPAs (Local Planning Authorities); improved funding, a reduction in red tape and more support for these departments would allow planning applications to be processed more efficiently and allow much-needed homes to be delivered.
- Offer incentives for people choosing to buy energy-efficient homes such as grants or additional tax relief – Pye Homes is committed to sustainability and energy efficiency, utilising environmentally friendly heating solutions including solar panels and air source heat pumps in its new homes. Today’s buyers expect so much more from their homes in terms of performance and levels of comfort and we believe residents will look to and move further towards zero-carbon living. The next government must acknowledge this through its green incentives for both housebuilders and buyers.
- Provide a scheme to offer stability for mortgage rates – Rising interest rates and higher costs have hit the housing market badly in recent years; the next government must look to give house buyers reassurance and stability to encourage them to either become first-time buyers or move up the property ladder and thus help the market grow.
Whoever emerges victorious on July 5th, the next prime minister and government must listen more to UK housebuilders of all sizes. Pye Homes has been in business since 1927, so we feel, like many of our peers, we’ve been around long enough – and operated through countless administrations – to know what we’re talking about.
Come July 5th, let’s see the politicians’ words turn into action and give the much-needed boost to an industry which employs around a quarter of a million people, and plays a fundamental role in the UK economy.
