What does the Tory Manifesto mean for housing

The Conservative Party released its manifesto on Tuesday, June 11th, 2024, less than a month before the general election. The current leader of the Conservatives and UK Prime minister, Rishi Sunak, has not had the best few weeks as he came under fire for leaving the D-Day memorial early on 6th June.

Many voters are undoubtedly concerned about property amid a housing crisis. This blog post details what the Tory manifesto pledges regarding housing.

Context of the Conservative Party

The Conservative Party, sometimes called the Tories, has been the UK government’s ruling political party over the past 14 years.

One of the party’s biggest pledges was to build 300,000 homes per year since 2017, which they have consistently failed to meet.

The state of housing in the UK

The UK has had several housing scandals over the past decade or so. From social housing tenants’ complaints of inhabitable living conditions to rising mortgage rates to the more recent service charge scandal to the lack of houses available.

These are all things that have contributed to the dire situation of the housing crisis today.

There has been a lack of contribution from the Conservative Party to deal with these issues under their current leadership.

What does the Tory manifesto pledge for housing?

The 80-page document of the Tory manifesto includes pledges for housing in the UK. Here are some of the key points mentioned in the manifesto for housing:

Stamp Duty

According to Halifax, the average first-time buyer is 32 years old. To help people onto the property ladder, The Conservatives have pledged to ensure the majority of first-time buyers pay no Stamp Duty. Stamp Duty is a tax that you have to pay if you buy a property or a piece of land. Removing this for many would lower the upfront costs of buying a home.

The Conservatives have specifically pledged to make permanent the increase to the threshold at which first-time buyers pay Stamp Duty to £425,000 from
£300,000.

Housing Schemes

The Tory manifesto outlines that it will reintroduce the Help to Buy scheme that was abandoned in October 2022. The conservatives say this “new and improved” Help To Buy scheme will provide first-time buyers with an equity loan of up to 20% towards the cost of a new-build home.

The Help to Buy scheme will also help first-time buyers get onto the housing ladder with a 5% deposit.

The manifesto also mentions keeping the Mortgage Guarantee scheme to help ensure first time buyers can get low deposit mortgages.

Social housing

For social housing, the Conservatives will introduce laws for ‘UK connection’ and ‘Local connection’ tests in England, where applicants are expected to live in the area or have a work or family connection to the area for a certain amount of time before they qualify for social housing in that area.

To tackle anti-social behaviour, The Conservatives have also pledged to implement a ‘three strikes and you’re out’ expectation of social housing landlords for anti-social behaviour.

This will mean these landlords will be expected to evict tenants whose behaviour disrupts neighbours.

Build more homes

The Conservatives are pledging to deliver 1.6 million homes in England in the next
Parliament, which equates to 320,000 homes each year – an increase from their previous pledge. Some ways they plan to do this is by using brownfield land in urban areas, raising density levels in inner London, and implementing the Renewing the Affordable Homes Programme, which claims to focus on regenerating and improving housing estates.

The Tory party also says they will support those who want to build or
commission their own home by making the planning process simpler.

Capital Gains Tax

Capital Gains Tax is a tax levied on profit from selling property or an investment.

The Conservatives plan to protect family homes from higher tax under the Family Home Tax Guarantee. They also plan to protect landlords further by implementing a two-year temporary Capital Gains Tax relief for landlords who sell to their existing tenants.

Leaseholds

The Tory’s have pledged to complete leasehold reform and plan to do this by capping ground rent at £250. They also claim to end the abuse of forfeiture, so leaseholders don’t unfairly lose their property.

Renters Reform Bill

Section 21 has constantly been delayed in being passed in recent years. However, in their manifesto, the Conservatives outline that they will finally pass a Renters Reform Bill that banishes Section 21. But they also say they will make way for other grounds for landlords to evict private tenants guilty of anti-social behaviour.

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