Election 2024: Property industry reactions to the election of a Labour government

By PrimeResi Pundits

Featuring commentary & insights from: Dominic Agace, Guy Gittins, Tim Hyatt, Trevor Kearney, Camilla Dell, Marcus Dixon, Lisa Simon, Becky Fatemi, Nicholas Gray, Will Watson, Geoff Wilford & more

As widely anticipated, the Labour Party has swept to power under new Prime Minister Keir Starmer.

Ahead of Thursday’s General Election, the mood within the property sector was generally positive towards the probable new government, with leading players in the Prime Central London market suggesting “business as normal” despite electioneering.

Reassuring noises from Starmer and Chancellor-in-waiting Rachel Reeves about being pro-business, pro-wealth creation and pro-housebuilding seemed to more than offset any fears about higher tax rates for overseas buyers of UK property, the potential for VAT on private school fees, or a hard end to non-dom tax exemptions.

Further Reading

Labour’s election manifesto was full of centrist policies designed to not scare anyone. On housing, there was not a great deal of difference between the three main parties’ pledges, with the Conservatives, Labour and Liberal Democrats all declaring for leasehold, rental and planning reforms, as well as an end to non-dom status.

With no surprises and the prospect of a stable government for the first time in years, our panel of Prime Residential pundits have generally expressed cautious relief about the way the vote went.

But there are strong notes of caution, as the new Downing Street team have yet to flesh out policies or confirm what changes will happen and when…

Talking Heads

It’s really important that the new Government stays true to the centrist stance on which it was elected

– Dominic Agace, Chief Executive of Winkworth

“With a new Labour government with a strong majority, it looks like we will have political certainty, putting the instability of the past ten years behind us and raising the profile of the UK amongst our international peers once more.  A lack of stability has deeply affected the property sector.  Now, coupled with the increasingly positive news on the UK prospects and with interest rate cuts pending, this should encourage a new upbeat mood in the property market.  Therefore, I think it’s really important that the new Government stays true to the centrist stance on which it was elected.

” I look forward to a steady, consistent and business-friendly approach to the economy without unfunded spending, so we can finally address the biggest issue of the day. High interest rates  are hurting home buyers, preventing first time buyers getting on the ladder and preventing investment in new homes.

“I believe it’s essential that the new  Government, in its  desire to show progress, that it does consider its new policies carefully,  rather than rush them through – to avoid unintended consequences.

“I welcome their investment into planning departments and quicker release of development sites to help meet housing demands.

“I don’t want them to rush into intervening in the private rental market without considering that supply of properties to rent, particularly in the cities is the fundamental issue.  We are currently short of 120,000 rental properties to meet current demand. Banning Section 21 without adequate resources in the court system to allow landlords to exit anti social tenants will lead to a sell off.  This also applies to rent controls where mechanisms need to be well thought through. Without growth in rents aligning with inflation over the long term,  institutional investment will not be made in the sector. This is much needed to create  enough new homes for a growing number of tenants of all ages.”

The new Labour Government has already been priced into the London residential market

– Nicholas Gray, Sales & Marketing Director at Native Land

“Typically, around the time of an election there are high levels of uncertainty that tends to cause nervousness in the market, however as the outcome has been long predicted, the new Labour Government has already been priced into the London residential market.

“Whilst part of the residential market saw buyers postpone plans due to a combination of high interest rates and political uncertainty, the top end of the market has continued to operate business as usual, as we’ve seen continued strong performance across our schemes.

“The long-term prosperity of the prime residential market is difficult to predict with potential new rules being introduced for foreign buyers. Despite this, domestic buyers still recognise the UK as a safe haven for investment and with this new government we look forward to further market stability.”

We don’t have certainty on what a Labour government plan to do for sure

– Will Watson, Head of The Buying Solution

“The labour win comes as no surprise. It has been talked about for months and now we have certainty. What we don’t have certainty on is what a Labour government plan to do for sure.

“There has been so much noise as to what they will implement and everyone is trying to second guess what’s next. No-one knows for sure. This uncertainty will likely last for months as they settle in and we will have to endure more unknowns. This concern will continue to offer good buying opportunities as many sellers will want to “get out” before a potentially weaker market later in the year.”

I would encourage the new government to be more bold and ambitious on planning reform

– Matthew Robertson, Co-Founder and CFO of Valouran

“A lack of planning resource has held the property industry back ever since the austerity measures were introduced post the great financial crisis.

“It is encouraging to read of Labour’s planned recruitment drive for an additional 300 planning officers, but with the mandate they have received from the electorate, I would encourage them to be more bold and ambitious, and to push through their plans to release lower quality green belt land. Only by doing so will they have a chance of making good on their target of building 1.5 million homes over the course of this parliament.”

The Labour government has policies that in general positively support the property industry

– John Gravett, Managing Director at Cluttons

“With a new administration and a clear mandate for five years, the Labour government has policies that in general positively support the property industry, ranging from a push for new homes and a proactive change to planning policies.

“There is cautious optimism on the support for digital infrastructure which the UK needs upgrading desperately, for its future resilience and competitiveness both to support Net Zero targets and the real assets we have in the property sector.

“Business rates continue to be an unknown area which is concerning as the Labour Party is seeking to ‘breathe new life’ into the high streets. However, no clarity has been provided on proposed policies that on one hand generate £30bn in tax revenue, but to a property owner/occupier is a significant operational cost burden. Nonetheless, a clear five-year mandate and an improving economic outlook is encouraging after the headwinds of the previous six years.”

Increasing the higher stamp duty rate on purchases of residential property by non-UK residents by 1% is unlikely to have a major impact on London’s property market

– Matt Thompson, head of sales at Chestertons

“Labour’s announcement to lower the stamp duty threshold for first-time buyers from £425,000 to £300,000 in April 2025 has left many wondering if the party will introduce any major initiatives that will make it easier to get on the property ladder. Buyers will be looking for Labour to fulfil its pledge to introduce the Freedom to Buy scheme but are concerned that buying a first home continues to be challenging.

“Labour’s plan to increase the already higher stamp duty rate on purchases of residential property by non-UK residents by 1% is unlikely to have a major impact on London’s property market. The capital remains a global city that attracts international professionals and investors who will simply adapt their property search by lowering their budget or by buying in a part of the city where they get more property for their money.”

Labour’s manifesto pledged to improve the UK’s housing market and the party will be under immense pressure to deliver

– Nigel Bishop of Recoco Property Search

“Labour’s manifesto pledged to improve the UK’s housing market and the party will be under immense pressure to deliver. One promise was to build 1.5 million homes and we are interested to learn more about Labour’s plans to utilise “poor quality” green belt areas as this will likely be met by protests from some local residents and organisations.

“Labour’s pledge to levy VAT on school fees has been labelled one of the party’s more controversial ones. This will leave many parents unable to afford private school education and inevitably impact on the property market by boosting demand for properties in close proximity to good state schools. Properties in these catchment areas can already ask a 20% premium and a politically-caused boost in demand for such homes will create an even more competitive market for buyers.

“In the run-up to the General Election we already saw house hunters, who previously paused their activity to observe the political development, resume their search. Now that a party has been elected and economists predict a likely interest rate cut over the coming months, we expect further buyers to follow suit.”

Labour is actively discouraging HNW individuals from settling and remaining in the UK

– Becky Fatemi, Executive Partner at Sotheby’s International Realty

“It is very important that our new government does not alienate international audiences from the UK – their wealth is vital in supporting our economy. London in particular thrives as being a truly ‘global’ city and ‘the’ global capital of the world in terms of business opportunities, first class education, the time zone, incredible housing stock, culture, lifestyle, access to Europe and more. By abolishing the ‘non-domicile regime’, an over 200 year old scheme that allows international high net worth individuals to live in the UK and not pay tax on any overseas income, Labour is actively discouraging these individuals from settling and remaining in the UK – and crucially if they leave for the most this means they are taking their wealth and spending power with them (the Office for Budget Responsibility expects this to be between 10 and 20% of current non-doms).

“We are already seeing people leaving for places such as Dubai and Italy and in time as more and more depart it puts an unforeseen pressure on an intricate ecosystem, potentially endangering vast numbers of businesses and livelihoods alike. The impact is not confined to property sales alone; it extends to other sectors of London’s economy, notably hospitality, but also services, tradesmen, private transport, cab drivers, nannies, housekeepers and so on.

“Under the previous rules, non-dom families could settle in the UK and enjoy various benefits. Families could plan their lives with stability, ensuring their children could complete critical stages of their education, from primary to secondary school, and even prepare for university. London’s top-tier schools and educational programs provide exceptional learning opportunities that are held as a benchmark around the world.  The new four-year window, after which non-doms would pay the same tax as everyone else, drastically shortens this time, disrupting children’s education continuity and making it challenging for families to fully integrate and take advantage of the long-term educational benefits the city offers.”

I doubt that Labour’s plans to impose VAT on school fees will trigger a mass exodus from private education

– Geoff Wilford, founder of Wilfords London

“Now Labour is in power, I doubt that their plans to impose VAT on school fees will trigger a mass exodus from private education. The premium for homes in desirable catchment areas, especially in London, will likely outstrip the rise in private school fees. Financial circumstances will vary, and the rise in mortgage costs over the past few years will compel many to scrutinise their outgoings, however, I suspect that many parents with children in private schools can absorb the additional costs. Moreover, these parents are unlikely to disrupt their children’s education unless absolutely necessary.

“Properties in areas with outstanding Ofsted-rated schools are already in high demand, and good family homes are snapped up swiftly. We have seen the fierce competition among families who are keen to secure a place for their children and this can drive up house prices in prime areas. Therefore, unless a family already resides in a good catchment area, I highly doubt they will consider taking their children out of private education unless they absolutely have to, even then a house might not be available in their desired area.”

The impact of Labour’s leasehold proposals will be closely watched

– Nina Harrison, Haringtons UK

“With Labour now in power, the impact of their leasehold proposals will be closely watched. The manifesto’s pledge to abolish leasehold for new homes and revamp leasehold management practices has been welcomed by those familiar with issues involving freeholders and management companies.

“Yet, the transition to leaseholders assuming the freehold presents a significant challenge: finding capable individuals to manage building maintenance comprehensively. This responsibility spans from overseeing gardeners and cleaners for communal areas to ensuring adequate insurance and resolving disputes between owners.

“Finding someone willing to take on this crucial role can be daunting, and its neglect can result in the gradual decline of properties. Maintenance of communal areas and gardens, sometimes overlooked by those who have a management company already in place through an existing freeholder, profoundly influences a property’s attractiveness and market value. Despite these challenges, owning a share in a freehold offers residents substantial control over their living environment. However, effective management is essential to sustain the property’s upkeep and enhance its appeal over time.

“It could potentially be a case of being careful for what you wish for as when leaseholders take over a freehold, they need to ensure they know exactly what they are now taking responsibility for.”

Labour have certainly made it very clear that housing a big priority for them

– Liam Monaghan of LCP Private Office

“Labour’s victory and its subsequent housing policies are set to bring substantial changes to various segments of the housing market. While there are clear benefits for first-time buyers, the planning system and local property markets around good state and grammar schools, the impact on Prime London due to the abolition of non-dom status and increased levies on overseas buyers could present challenges. Overall, the market is expected to see increased activity and growth following the Election. The housing market in Central London has been further suppressed in recent years in terms of transactions. This was mainly fuelled by the various lockdowns which made international travel impossible for overseas investors, high interest rates and conflicts in Ukraine and Middle East. So for any government who introduces a clear housing policy, this should help encourage a direction of travel to help grow the market again – Labour have certainly made it very clear that housing a big priority for them. Falling interest rates, which are likely to follow the Election, should then further boost confidence among international buyers and investors. This combination of stability and lower borrowing costs could stimulate market activity and potentially end the house price growth stagnation observed over the past decade in Central london

Demand for Homes Around State And Grammar Schools

“As the planned imposition of VAT on private school fees is expected to drive demand for properties near good state and grammar schools, local property markets around them are poised to flourish. We may not necessarily see this trend amongst the wealthy who can afford the higher rates, but families seeking quality education without the additional financial burden of private school fees may look to move into these areas, increasing demand and consequently, adding a premium to house values. With increased mortgage rates, such parents will literally be choosing between their child’s education and being able to afford their home. As a result, we may also see more downsizers come to market, as they release equity to help keep their grandchildren in education. On the flipside, this increased demand will make getting placed in state schools even harder than it already is, even if a family is living within the catchment area.

First-Time Buyer Market

“Labour’s housing policy set out in their manifesto is set to be particularly beneficial for first-time buyers. Some of our first-time buyer clients have already expressed their intention to wait for Labour’s policies to come into effect, anticipating that these measures will create a more favourable environment for their entry into the housing market. Giving first-time buyers priority access to new build developments could make it easier for them to step onto the housing ladder, making home ownership more accessible, however new build property often comes at a premium and could price out FTB’s.Meanwhile the promise of a permanent mortgage guarantee scheme to replace the temporary one currently in place should encourage first time buyers to take the plunge into home ownership. My concern would be however if demand is stimulated, and the promised increase in the supply of homes once again doesn’t materialise, this will only drive up prices for them. Also, Labour plan to reduce the stamp duty threshold for first time buyers back to £300k, which obviously increases this levy for them.

Abolishing ‘Non-Dom’ Status & Increased Stamp Duty For Non UK Residents

“The abolition of non-domiciled (non-dom) status by Labour could have several negative consequences for the London property market. Whilst the policy was initially announced in The Chancellor’s Spring Budget earlier this year and set to take effect from April 2025, Labour has refined the plans to close anyperceived loopholes. Non-dom status has historically attracted wealthy international investors to Prime London especially, bringing substantial capital into the market. These investors often purchase high-value properties, significantly boosting the luxury real estate sector and contributing to overall market vitality. Without the tax advantages of non-dom status, many of these investors might redirect their funds to other countries with more favourable tax regimes, reducing demand. This could lead to a decline in property values and a slowdown in market activity, particularly in high-end segments. Of course, this is great for buyers, especially first timers, who may in turn replace the demand – but should a falling housing market prevail, this is not good for the economy overall. Additionally, the exodus of wealthy non-doms could impact local economies, as their spending supports various industries, including retail, hospitality and professional services. The potential reduction in foreign investment might also lessen the overall attractiveness of London as a global financial hub, further impacting the broader economic landscape.

“Additionally, the potential increase in stamp duty levies on overseas buyers to fund more planning offices could further reduce foreign investment. While unlocking the planning system is a positive step, the increased costs for overseas buyers might diminish their presence in the Prime London market, which has traditionally benefited from them. Any increase in SDLT will often lead to a rush for transactions as seen in April 2015 and the peak of the market when graduated Stamp Duty cane into play.

Planning & Building New Homes

“The current planning system needs a good shake up, especially to look at conversions from commercial into residential. An efficient and streamlined planning system can accelerate the approval and construction of new housing projects, addressing the chronic housing shortage generally. By reducing bureaucratic delays and simplifying the approval process, more homes can be built more quickly, helping to meet the growing demand and of course, Labour’s ambitious plans of building 1.5million homes in five years. This improvement can also enhance affordability, as increased housing supply can stabilise or even reduce property prices and rents. Additionally, a better planning system can ensure that new developments are more sustainable and better integrated into existing communities, promoting balanced and inclusive growth. Overall, any Government’s focus on enhancing the planning system is essential for creating a more dynamic, responsive and equitable housing market, so it will be interesting to see how Labour take this forward.”

Change has been promised, but thankfully for the property industry, the gradual steps likely to be made in the coming months will make sure change is delivered with stability

– Iain McKenzie, CEO of The Guild of Property Professionals

“Change has been promised, but thankfully for the property industry, the gradual steps likely to be made in the coming months will make sure change is delivered with stability.

“Labour’s plan to build 1.5 million more homes is a welcome policy initiative that will surely get more people on the property ladder. The way these targets are delivered is crucial as there is a lack of affordable housing in many parts of the country.

“Any planning reforms should ensure that communities are being supported by infrastructure rather than just housing estates.

“We do not anticipate any immediate changes to the mortgage market in the aftermath of these results.

“The sticking point for mortgages is the current base rate, and while overall inflation is within target, inflation for core services remains high. The Bank of England is not in a rush to lower interest rates without knowing for certain that inflation won’t be at risk of ticking upwards again.

“Rate cuts are more effective in stimulating the market than mortgage guarantee schemes. Labour has teased that there may be a new version of the help-to-buy scheme on the horizon.

“The buy-to-let market may see the most volatility under the new government, as landlords are facing difficulties due to high borrowing costs and regulatory changes.

“Potential increases to Capital Gains Tax might cause more landlords to exit the market, or pass the increased costs over to tenants.

“This must be avoided at all costs, as rent prices have been unaffordable for many tenants during the cost-of-living crisis. A proposed ban on ‘no fault’ evictions will be a safety net for some tenants, but it remains to be seen how significantly it will impact landlords.”

Overall, there is room for cautious optimism for the rest of the year

– Nicky Stevenson, Managing Director of Fine & Country

“Buyers and sellers should be assured by today’s results that the property market is likely to remain robust in the coming months. Further buoyancy in the housing market is expected once the political climate settles.

“Election periods usually cause a hiatus in market activity, but that has not been the case this time around. While there may be some question marks remaining over taxation, the housing sector has shown resilience.

“It is going to be very interesting to see how the new Labour government injects some fresh thinking into the industry, following several years of dramatic ups and downs in house prices and property transactions.

“The big promise is a renewed push on homebuilding, as well as a determination to get more first-time buyers on the property ladder. We welcome this news, so long as consideration is given to helping towns and villages put in the necessary infrastructure to cope with any flux in population.

“While house prices and transaction levels have plateaued this year, a shot in the arm for building and the likelihood of a base rate cut later this year could help to get more people moving into their own home.

“The prime property market has awakened from its slumber in recent months – with ripples of a cautious recovery spreading across the landscape, particularly in Scotland and the East Midlands with positive annual growth of 10.3% and 1.2% respectively.

“Labour’s proposal to abolish non-dom status could impact the housing market by potentially increasing the number of properties for sale. High-net-worth individuals with properties in the UK may look to sell up if they are affected by the change in regulation, which would in turn expand the prime residential market even further.

“Only about 0.1% of the population has non-dom status, implying a limited overall effect. It is also worth noting that most of the people affected are likely to be based in London.

“The new prime minister has been very careful in his wording on taxes, making sure to not rule out any changes to Capital Gains Tax or Inheritance Tax, both directly affecting the property industry.

“Overall, there is room for cautious optimism for the rest of the year and the property and financial markets will benefit from a decisive majority for the government, as opposed to the instability that could have loomed with a hung parliament.”

We want to see long-term cross-party cooperation that delivers the right kind of homes in areas they are desperately needed

– Nathan Emerson, CEO of Propertymark

“Propertymark welcomes wide-ranging engagement with the new Labour Government to help steer an objective pathway forward for the housing sector. We have seen a chronic undersupply of affordable new housing for many years.

“Sustainable housing is the foundation for any strong economy and there must be clear and well thought out plans that inspire investment and improve supply moving forwards. We want to see long-term cross-party cooperation that delivers the right kind of homes in areas they are desperately needed.”

The new housing minister must be given the opportunity and time to make impactful change

– Tim Hyatt, Head of Residential at Knight Frank

“With Labour’s decisive victory, what the property market now needs is a period of sustained political stability.

“The new housing minister must be given the opportunity and time to make impactful change. For too long we have seen housing ministers come and go; the impact of 16 ministers in this position over the last 13 years has resulted in little progress when it comes to driving housing supply, much needed reform to the planning system and unlocking suitable land for development. This key position must be prioritised by the new Government, helping to give the market the tools it needs to get Britain building.”

Positive news for the London sales market

– Guy Gittins, CEO, Foxtons 

“This morning’s news of Labour’s victory in the election should prove positive for the London sales market.

“Labour’s manifesto demonstrated a strong focus on business and economic growth, which is very promising. This focus, together with improving inflation figures and an anticipated rate cut later in the summer, should give both buyers and sellers confidence and result in good levels of activity in the market for the rest of the year.”

Expect to see more urgency in the market

– Jimmy Waight, Head of Sales at John D Wood & Co.

“The lead-up to this year’s Labour election win hasn’t significantly impacted the market; it’s been business as usual in the PCL market. In fact, June was a standout month for us, with the best sales agreed all year. Our clients had largely accepted the likelihood of a Labour government, with the main concern being the introduction of VAT on school fees. This policy has been on the agenda for some time, and many clients have already started making plans, potentially considering releasing equity to offset the potential rise in school fees.

“Following last night’s result, we anticipate that interest rates will come down, which is encouraging. Stability, whether you like Labour or not, will drive market sentiment forward. Despite some new policies, such as the 1% increase to the Stamp Duty Land Tax surcharge for overseas buyers, nothing has been too controversial yet. With the election now behind us, we expect to see more urgency in the market.”

In previous election years, there has been a slight bounce in home-mover activity after an election has taken place

– Tim Bannister, Rightmove’s property expert

“The certainty of having the next government in place will be good for the market, and we wait to see the housing policies that are prioritised. We can see in our data that in previous election years, there has been a slight bounce in home-mover activity after an election has taken place – so the same could happen this year in the short term, particularly against a background of a potential Bank Rate cut on the horizon, and lowering mortgage rates.

“It is crucial that the government considers the impact of any new policies on the wider market, as a policy designed with one group in mind often has knock-on implications for another group of home-movers. Earlier this week Rightmove quizzed Keir Starmer about what he would do to help housing, and it’s encouraging to see that Labour’s manifesto focused on building more homes and planning reform. Creating more homes for sale and for rent quickly, whilst maintaining quality is a pressing issue, to ensure there are more homes to meet the demand.

“We think there is an opportunity to go further in giving support to first-time buyers. Whilst a permanent mortgage guarantee scheme provides the certainty that this option will be available, from our research we can see that only a small number of first-time buyers are likely to benefit from it. Making the existing stamp duty thresholds permanent for first-time buyers would be a start, and then there is an opportunity to look at innovative solutions to help first-time buyers with both their deposit, and being able to borrow enough from a lender in the longer term.”

The proof will be in the Autumn budget

– Camilla Dell, Managing Partner at Black Brick

“The majority win was expected. So the markets, both financial and property were expecting this. In the run up we had very few clients mention the election. In fact on Election Day itself we took park in a sealed bid on a family house in Fulham for clients and we won.

“Markets like stability and with a large majority Labour will be able to implement its policies. From a property market perspective we hope they follow through with plans to build more and perhaps reconsider how they approach non dom changes. It’s positive that Labour don’t plan on holding an emergency budget so they have time to consider proposed policies carefully and go to consultation on important changes. The proof will be in the Autumn budget and we shall have to wait for that to see the real impact of the new government.”

Residential market activity has been buoyant and is considerably better than last year

– Lisa Simon, Head of Residential, Carter Jonas

“As a norm, the announcement of a general election can often cause vendors and buyers to pause decision-making until the outcome is confirmed. However, the lead-up to the general election has not dampened residential market activity, which has been buoyant and is considerably better than last year. This trend is expected to continue and even improve in the coming months. Two factors have perhaps contributed to this stability, the seemingly foregone conclusion of the election outcome with Labour’s strong performance in the polls and the party’s reassurances to voters and markets about no fiscal surprises.

“Regarding the rental market, while Labour plans to introduce the Rental Charter to provide tenants with more protections, there is a need for specific policies to address the acute shortage of adequate housing stock. Urgent measures to support the supply of long-term rental properties are necessary, as many landlords have left, or are leaving, the market due to stringent requirements and costs. This shortage is exacerbating issues of unaffordability and unsustainable rental growth. To incentivise landlords, it is crucial for the new government to consider implementing tax relief for buy-to-let (BTL) mortgage holders and mortgage interest costs. This move would align BTL mortgage holders with other businesses benefiting from tax relief in the UK.”

Labour’s policies appear confused, contradictory and flimsy

– Trevor Kearney, founder of The Private Office

“Despite the UK primed to kick-on with inflation under control, consumer confidence up and growth projections looking healthy, Labour’s policies appear confused, contradictory and flimsy.

“Scraps to lucrative exemptions to inheritance tax and ongoing concerns around the introduction of a wealth tax, the party risk overlooking the positive impact on entrepreneurial activity, innovations, and long-term growth that ultra-high net worth individuals have.

“It might look tempting as a way to reduce wealth inequality but in practice, it will not work.

“Keir Starmer and Rachel Reeves have announced plans to attract foreign investors, stating the party’s top priority will be wealth creation.

“This includes a global investment summit in its first 100 days in office where foreign investors would be invited to see what the UK has to offer and yet, their plans to abolish the non-domicile regime contradicts the very policies around wealth creation and foreign investment that they’ve promised.

“While the UK was once seen as an attractive place to invest, live and work in, wealthy foreign individuals will now face the removal of rights to avoid taxes in their first four years of residency and avoid inheritance tax on foreign assets held in a trust.

“As such, we should expect to see a flurry of nom-doms forced out to other European countries, such as Switzerland and Italy. The knock-on effect of this will be significant – we’ve already seen what harm decisions such as the removal of VAT recovery for foreign tourists can do.

“The Labour party need to clarify and refine their pledges. Is a global crackdown on the super wealthy a bigger priority than attracting foreign investment and overseas money? With their aims engrained in growing the economy, the onus should rest with the latter.”

Hopefully some stability for the property market for the next few years

– Edward Heaton, founder of buying agency Heaton and Partners

“The sheer scale of the Labour majority will hopefully give some stability to the property market for the next few years.

“It remains to be seen how the new government may or may not tinker, particularly with taxes, but for the most part we expect more of the same. It will also be interesting to see how Labour’s plans for mass new housebuilding will be executed. I very much hope it will be a success.”

We will all be wiser on 17th July…but we will have certainty and markets like certainty

– Sam Butler of Butler Sherborn

“We now have certainty, and with it we can expect a degree of stability and confidence. For those of us who have lived through a good number of Elections, and experienced the property markets under Labour, we know that property can perform better than some may predict under its administration. Bricks and mortar are traditionally perceived as a good hedge against inflation.

“Undoubtedly, there will be initial concerns in respect of increases in SDLT, Capital Gains Tax and Inheritance Tax, and only after The King’s Speech on 17th July should matters become clearer. The new government, despite it’s euphoria, still faces the challenges of it’s predecessor in dealing  with the economy, the demands of a failing health service and conflicts abroad.

“In the run up to the Election in the Cotswolds, we have seen a flurry of activity as committed buyers decide to get the deals done and with an attitude of ‘life goes on’. However, some have chosen to sit on their hands and await the outcome.

“Sir Keir inherits a far more healthy economy than Sunak, thanks to Rishi’s and Jeremy Hunt’s intelligent and firm handling of it in the post Truss era. Labour should be acutely conscious of the value of this inheritance, and will be reluctant to implement policies which will adversely impact the progress made. When there is equity in homes, people spend on credit cards for new kitchens, cars and the upgrading of their homes, and in turn employ skilled tradesmen. Or they decide to sell, release the equity and spend it! This is a stealth aspect of any economy about which people choose not to comment. With the residential housing stock across England valued at £7.5 trillion, a 10% increase in value of residential property results in £750 billion in tax free unearned income added to the wealth of the country. The converse is, of course, also true.

“We will all be wiser on 17th July, and better able to understand the likely impact of the new administration, but we will have certainty and markets like certainty.”

It typically takes around six months for a new government to establish its policies and for these to start influencing the market

– Jerome Lartaud, director of independent buying agency, Domus Holmes

“Historically, general elections have not had a substantial impact on the mainstream property market. Research and data show that house prices typically rise by an average of 4.6% in the year following an election.

“However, the dynamics are different in the prime and super-prime property markets, especially in Prime Central London. Factors such as the tax treatment of non-doms could potentially slow down activity and price growth in these areas.

“For the broader UK property market, several critical issues need to be addressed, including the rental market, housing delivery, planning, and the Renters Reform Bill. Among these, affordability is the most pressing concern for the mainstream market.  The impact of interest rates is likely to be more significant than the election outcome itself. With inflation currently falling to 2.3%, we might see several bank base rate cuts, which could lower borrowing costs for mortgages and stimulate market activity.

“Overall, while political changes bring some uncertainty, the fundamental drivers of the property market remain rooted in economic factors and market conditions. We should not expect immediate changes in the property market following Labour’s victory. It typically takes around six months for a new government to establish its policies and for these to start influencing the market. Currently, while we see a slight slowdown in activity, the market remains robust.”

Housing was rightfully a cornerstone of the Labour manifesto, and it is imperative that it remains a top priority

– Marcus Dixon, Head of UK Living & Residential Research at JLL

“A Labour landslide gives the incoming government a once in a generation opportunity to be bold and enact real change. While we can expect some immediate measures to be introduced in the coming weeks, the enduring impact of this parliament should be the development and execution of a new long-term strategy to revolutionise our approach to development. We shouldn’t kid ourselves that a 300,000 housing target is achievable in the short term, but where this government can make a difference will be putting the building blocks in place to ensure it is achievable in the future.  This requires a holistic view of the housing ecosystem—recruiting and training the workforce of tomorrow, adopting more efficient and innovative building practices, and prioritising housing for those most in need.”

“Housing remains one of the most significant challenges and opportunities for the new Labour government. Persistent failures to meet housebuilding targets have resulted in a shortfall of over 2.5 million homes since 2004, with current projections indicating an additional half-million homes could be added to this deficit over the next five years unless there is a change in our delivery approach. The social housing waiting list alone has reached nearly 1.3 million households, and JLL estimates that addressing this backlog would require an investment of more than £200 billion. However, a robust housing sector promises not only improved living conditions but also long-term economic and social benefits. Housing was rightfully a cornerstone of the Labour manifesto, and it is imperative that it remains a top priority.”

Too much of a focus on taxing wealth, assets and institutions could lead to lower-than-expected growth

– Kimberley Gates, Karis Capital

“Typically, the build-up to an election can cause stagnation and uncertainty in the financial markets, however, we have seen inflation continue to drop and interest remains stable. Labour’s success and mandate to present their new government structure to King Charles will hopefully be seen as a positive step forward for the country and act as a boost to the sector. We expect this Labour government to follow prudent economic policies, with the potential of boosting growth, and their initial policy pledges have potential but there is still uncertainty on the areas they will target to boost the public purse.

“In its manifesto, Labour pledged ambitious plans to grow the economy and coupled with tentative expectations that the next interest rate announcement will see the first cuts in some time this could lead to more optimism in the market and increase activity. However, poor effectiveness of the plans or too much of a focus on taxing wealth, assets and institutions could lead to lower-than-expected growth, which will have adverse implications on the private investment and finance sector.”

Main image: Starmer & Rayner (image via labour.org.uk)