The political parties have set out their stalls in manifesto week and, as is traditional, there are still question marks over how most of their policies will be funded. Suspending disbelief for a minute, and assuming that money is miraculously no object, Alex Horne takes a look at what the politicians’ proposals could mean for the industry and revisits some of the most far-fetched suggestions and snidest jibes of the election campaign so far
What’s the gist? Most Conservative housing policies are aimed at getting first-time buyers on the property ladder. The party is hell-bent on inspiring a new generation of voters by following the political maxim that home owners are more likely to vote Conservative.
Key figures
400,000 homes built over five years
200,000 starter homes for sale to under-40s at a 20% discount
500,000 first-time buyers
1.3m people given the right to buy
Winners The North
In keeping with the topsy-turvy nature of this election, the North could benefit greatly from a Conservative government. The party has made a lot of noise about the Northern Powerhouse, which will be fuelled by HS3 and devolution.
Losers Renters
Extending right to buy will undoubtedly make those living in housing association property happy. But those in private rented accommodation could feel snubbed.
Ruth Davison, policy director at the National Housing Federation, says: “It won’t help the millions of people in private rented homes who are desperate to buy but have no hope of doing so.”
Um… really? The Tories are standing by the bedroom tax, despite the policy representing every stereotype the party is trying to rid itself of.
Rabbit out the hat Right to buy was the headline from the manifesto, but it was the figure of 400,000 homes in five years that was the real trick, trumping both the Lib Dems’ and Labour’s pledges.
Snidest jibe
David Cameron on Ed Balls: “You don’t need it to be Christmas to know you’re sitting next to a turkey.”
What’s the gist? A shortage of land will be dealt with by putting an end to land banking, local authorities will get more powers to deliver houses and planning will be streamlined for smaller sites.
Key figures
200,000 new homes a year by 2020
£5bn generated by a Help to Buy ISA for a future homes fund
1.5m smaller businesses will have their rates frozen
£30bn devolved to city and country regions
Winners Small housebuilders
The party will provide SMEs –including small housebuilders – with greater access to lower-cost bank lending and demand that local authorities include a higher proportion of small sites in their five-year land supply.
Losers London
Several of Miliband’s tax policies will disproportionately affect London residents – none more so than the mansion tax, which the party is pushing on with in the face of fearsome criticism.
John Dickie, director of strategy and policy at London First, says: “Increasing the top rate of tax to 50% will not increase the yield to the treasury in the medium term, but will make the UK a less-attractive place for global talent, and the proposed mansion tax is effectively a tax on Londoners.”
Um… really? Labour has proposed banning letting agency fees, in addition to requiring a deposit and the first month’s rent up front. Perhaps someone should tell Ed how estate agents work.
Rabbit out the hat In a shock move last week, Miliband said that he would scrap non-dom status.
Snidest jibe
Ed Miliband on David Cameron: “I think you doth protest too much. You have run out of excuses, you’re running scared of these debates and in the words of your heroine, Lady Thatcher, you’re frit.”
What’s the gist? The Lib Dems are positioning themselves as the middle ground, stopping the Tories from cutting and Labour from spending too much.
Key figures
300,000 homes a year within the next decade
30,000 rent to own homes
70,000 empty homes brought back into use
£10bn to help new builders borrow for housebuilding
Winners The environment
The Lib Dem manifesto sets out five green laws. Most relevant is the green transport bill: proposals include reforming planning law to ensure new developments are designed around walking, cycling and public transport.
Losers “Mansion” owners
The party has its own version of the mansion tax with the less‑confrontational title of the High Value Property Levy. Although the tax has largely gone unnoticed in the industry, it is essentially the same as Labour’s and would introduce a tax on properties worth more than £2m.
Um… really? Despite Clegg claiming the Lib Dem manifesto is “not a shopping list of pie-in-the-sky ideas”, the party wants to build at least 10 garden cities. An ambitious proposal, considering Ebbsfleet Garden City alone has yet to solve its funding problem.
Rabbit out the hat The most eye-catching property policy the Lib Dem party has is a return to direct government commissioning of private housebuilding.
Snidest jibe
Nick Clegg on right to buy: “It’s a measure of how much the Conservatives have run out of new ideas that the big idea is a poor cover version of one of Margaret Thatcher’s 1980s hits.”
What’s the gist? If you missed Estates Gazette’s interview with Andrew Charalambous, UKIP’s housing spokesman, you may be surprised to learn that the party is committed to tackling homelessness, promoting the rights of tenants and, perhaps less shockingly, protecting the countryside.
Key figures
1m homes on brownfield sites by 2025
20,000 ex-British soldiers housed
£5bn to fund a brownfield revitalisation programme
Winners NIMBYs
Of all the parties, UKIP is the most staunchly committed to maintaining the green belt and allowing communities to have their say on development.
Losers Developers
While UKIP’s emphasis on direct democracy is great for people who want to protect the village green, it’s not so great for developers. They would have to convince communities of the merits of their plans, because getting planning permission is currently too easy, according to UKIP.
JLL UK head of residential research Adam Challis says: “The system needs consistency and transparency. This extra hurdle would slow down delivery, increase costs and put off developers.”
Um… really? Charalambous is a self-proclaimed tantric master and believes in psychic surgery.
Rabbit out the hat One of the most startling moments of the coalition’s time in government was when Tory darling Douglas Carswell joined The Purple Side in August last year.
Snidest jibe
Nigel Farage on Ed Miliband: “I could become like Ed Miliband, I suppose, and sit at home and read treatises all day and wear an anorak in public but I’m just not going to do that.”
What’s the gist? When it comes to housing policies, the SNP is firmly on the side of the underdog. The party has fiercely opposed the bedroom tax, wants to prioritise homeless people for housing and will push for more funds for affordable housing.
Key figures
30,000 new homes over the course of the parliament
1,300 council houses built in the past three years
£80m to 23 local authorities for 3,300 council homes
0.5% spending increase
Winners SMEs
SNP members in Westminster have pledged to promote the interests of small businesses in parliament, including pushing to put prompt-payment measures for small businesses into law.
Losers The Tories/England, Ireland and Wales
Earlier this month Nicola Sturgeon offered to make a pact with Miliband to lock David Cameron out of government. This may seem good for Labour but could mean the party that wins the most seats would not enter government, meaning Russell Brand was right.
Um… really? The party has not ruled out another independence referendum… in a year’s time.
John Hamilton, chairman of the Scottish Property Federation, says: “The impact of a second referendum could once again create uncertainty in market activity.”
Rabbit out the hat In the run-up to the launch of Labour’s manifesto, the SNP announced it would be pushing for HS2, with a high-speed connection between Glasgow, Edinburgh and the North of England.
Snidest jibe
Nicola Sturgeon on Labour: “That Labour have been so quick to meekly fall into line with George Osborne’s plans just goes to show how far they have moved away from their roots.”
What’s the gist?
The Greens believe the free market is incapable of delivering enough homes. The party wants to build more social and commonly owned houses and minimise the impact of housing on the environment.
Key figures
500,000 new social homes by 2020
5% VAT on home repairs
36,000 jobs in the construction sector
Winners Long-term campers
The Greens will relax the planning laws for non-load-bearing structures such as tents, tipis, benders and yurts, which should make for some happy campers.
Losers The property industry
If the Greens somehow gain power, readers should consider a new career. Land value taxation will be introduced, spending on promoting plans will be limited and landlords will be barred from negative discrimination.
Um… really?
Who can forget party leader Natalie Bennett’s comment in January after recommending the abolition of the monarchy: “I can’t see that the Queen is ever going to be really poor, but I’m sure we can find a council house for her – we’re going to build lots more.”
Rabbit out the hat The Greens’ manifesto pledges £85bn for home insulation and renewable energy on top of £6bn for building social houses. Where it comes from, however…
Snidest jibe
After initially being excluded from the leaders’ debate, the Greens launched a poster campaign featuring Natalie Bennett and Caroline Lucas, goading the other parties by asking: “What are you afraid of, boys?”
What’s the gist? Like all the parties, and everyone else, Plaid Cymru wants more houses – specifically, sustainable housing that satisfies local need. The party wants to implement a “Build 4 Wales” programme to borrow funding for Welsh infrastructure projects and housing.
Key figures
5% VAT on home repairs
50,000 jobs from the Build 4 Wales programme
£70m council housing rent retained by local authorities
Winners Town centres
Plaid Cymru wants to change planning rules to ensure a variety of cultural activities is found in towns, support independent shops and prioritise local companies and the local workforce.
Losers Second-home owners
A 200% council tax charge will be introduced for second homes – in particular, where such homes are affecting the market… which is everywhere.
Tony Felice, director of Welsh agency Kelvin Francis, said: “The problem is how do you define a secondary home?
“If it’s more tax on holiday homes fair enough but if it applies to someone starting their rental portfolio it can only be a bad thing.”
Um… really? Plaid Cymru wants to hold a “Celebrate Wales” year to stimulate tourism.
Rabbit out the hat The party wants all of the major train lines in Wales to be electrified by 2034 and the electrification of the North Wales main line before 2019.
Best jibe
Leanne Wood to the four main parties – refers to the men in the leaders’ debate as “the four shades of Westminster grey”.
