“New” Labour Government’s approach to housing
Much of the pre-election political ‘chatter’ before the general election last year in terms of Labour’s housing plans was in respect of the commitment to build 1.5 million new homes over the next parliament, a commitment to legislate to overhaul the regulation of the private rented sector and plans to enact the Law Commission’s proposals on leasehold enfranchisement.
That something significant was needed from the incoming administration was obvious to all. Ministry of Housing, Communities & Local Government (“MHCLG”) figures from 3 and 30 October 2024 showed by way of example:
- 358, 370 households homeless, an increase of 10.4% on the previous year
- 146,430 households threatened with homelessness and so owed the prevention duty, an increase of 3.1%
- 117,450 in temporary accommodation, an increase of 12.3%
- 74,530 households with children in temporary accommodation, up by 14.7%
- 8,309 people sleeping rough in June 2024 for at least one night, up 15% on June 2023
- 2,808 people sleeping rough longer-term in June 2024, up 22%.
We are over 7 months into the Starmer-led administration so what have we seen to reverse this depressing trend?
The answer is that the Ministry of Housing, Communities and Local Government (and it was good to see the early removal of the somewhat tokenistic phrase of ‘Levelling Up’ from the name of the department) led by the Deputy Prime Minister, Angela Rayner MP, has acted swiftly and largely effectively to implement the government’s housing programme. For example:
- The Renters’ Rights Bill 2024-25 is at the time of writing this article at its Committee Stage in the House of Lords. This legislation will have a significant impact on the tenancy sector, particularly in the private rented sector where assured shorthold and fixed-term tenancies will become a thing of the past.
- From October this year, social landlords will be forced to investigate and fix dangerous damp and mould in set time periods, as well as repair all emergency hazards within 24 hours (i.e. Awaab’s Law).
- Leasehold reform legislation – building on the Leasehold and Freehold Reform Act 2024 ‘rushed through’ Parliament by the previous administration before the election last year – is planned to make commonhold, amongst other matters, the default tenure for new build flats. The Housing Minister, Matthew Pennycook MP, introduced new regulations in January of this year – the Leasehold and Freehold Reform Act 2024 (Commencement No. 2 and Transitional Provision) Regulations 2025 – which removed the two-year ownership rule for leaseholders of flats and houses to extend their lease or buy their freehold.
- Right to Buy (England, remembering it is already abolished in Scotland and Wales) – maximum discounts were significantly reduced in the first budget of the present administration to their pre-2012 regional levels ranging from £16,000-£38,000 from 21 November 2024:
“Reducing discounts on the Right to Buy scheme and enabling councils in England to keep all the receipts generated by sales will deliver on the government’s manifesto commitment to protect existing council housing stock and boost council capacity to ensure that vital social housing is available to those who need it most.”
and a consultation undertaken on further reforms such as increasing the three-year minimum tenancy period for tenants to be eligible to apply under the scheme.
5. Affordable Homes Programme – the MHCLG announced on 12 February 2025 an additional £300 million investment in the AHP and £50 million in the Local Authority Housing Fund.
6. Licensing changes – With effect from 23 December 2024 the Secretary of State for HCLG gave a general approval to all local housing authorities in England which meant that they no longer needed central government approval for any selective licensing schemes (though they must adhere to the statutory consultation requirements).
Of course, everyone will have their own personal take on the government’s progress on the housing sector to date. Personally, I get a sense of this government taking housing very seriously indeed, wanting to move quickly and, just as important, understanding the crisis it finds itself in.
That is not to say that everyone has gone perfectly or that there cannot be legitimate issues of dispute as to actions or decisions taken thus far. For example, the Housing Minister’s clear rejection of the notion of rent controls in the private rented sector will not have been universally welcome, and many will have wanted the Secretary of State to have gone further and quicker with the right to buy reforms.
Further there are the unknowns – such as how and when the government will ensure the civil and criminal court systems are properly resourced and what will be done about the crippling temporary accommodation costs endured by many local housing authorities (on 24 October 2024 London Councils reported that London boroughs were spending £4million every day on such costs, and had a forecast overspend of £250m this year on their homelessness budgets).
It is also good to get a sense of stability. I appreciate we are in the early days of this administration but in Matthew Pennycook MP we have a Minister who knows their brief and is genuinely interested in and committed to the area such that the spectre which saw 16 Housing Ministers in the 14 years starting in 2010 can hopefully be avoided with this government.
