What can the property market expect from the next Labour government? - Ritchie Clapson

A Labour government would need to think through plans that impact the ‘regular’ landlord. Can the sector take Labour being even less landlord-friendly than the Conservatives have been?

There may be better prospects for property development. More and more landlords are shifting from buy-to-let into small-scale property development. For many, the type of projects they undertake are just one step up from those they've done previously, such as creating an HMO or doing a refurbishment. Simply putting flats above a shop or converting a small commercial building can be expected to generate a six-figure profit, so no wonder there's a healthy appetite. It certainly puts the average landlord's buy-to-let profits in the shade. So, will Labour's approach to property development differ from that of the Tories, who have actively encouraged it by creating many new permitted development rights in England?

In my opinion, there's unlikely to be too much change. Late last year, Keir Starmer declared himself a YIMBY and insisted he would take a dim view of any Labour MPs opposing new housing in their constituencies. It would be refreshing to hear ‘yes, in my backyard’ but, as governments of all hues have discovered, when there’s the suggestion of construction work at the bottom of our own gardens, few of us can contain our inner NIMBYs, and they are a force to be reckoned with.

However, Labour wants to build around 1.5million homes using what it calls the 'grey belt'. This is green belt land that already has something built on it, such as car parks or petrol stations. They’ve stipulated that 50 per cent of grey belt development must be affordable housing, but it’s not clear how the economics of this will stack up for developers who clearly are going to want to make a profit.

Countryside charity CPRE argues that the focus should be on existing unused brownfield land, converting commercial properties to residential use. These brownfield sites are a rare political win-win. They positively impact the house-building numbers, plus voters are generally happy for these sites to be converted. It also gets more people living in our town centres, which benefits local economies. On that basis, I can't see Labour deciding that brownfield conversions are a bad idea. It should also be good news for landlords and investors because larger housebuilders won't touch small commercial conversion projects since most lack the skills or appetite to do them. This leaves more opportunities for first-time property developers.

Final thought: it would be good to see the office used by the Minister of State for Housing, Planning and Building Safety lose its revolving door; since 2010, there have been sixteen Ministers of State for Housing. The property sector deserves better.

Ritchie Clapson is co-founder of propertyCEO.