Housing experts are split on what a Labour victory would mean for the market with some arguing a raft of new protections for tenants will be bad news for landlords.
However others argue a win for Keir Starmer could allow a housing market reset giving greater priority to the building of desperately needed new homes.
Labour has indicated it will back a ban on no fault evictions of tenants, while the party is also under pressure to allow councils in some areas to introduce a cap on rents.
It has also signalled plans to sweep away many planning controls to promote house building, including moves to create a series of “new towns”.
Dariusz Karpowicz, Director at Albion Financial Advice, said: “Labour has indicated plans to tighten regulations on landlords, potentially making it even tougher for them.”
He complained: “Their proposals include regulating private rents and making evictions nearly impossible. Additionally, there’s talk of a scheme forcing landlords to offer tenants a buyout option similar to Right to Buy.
“Such measures could create uncertainty and discourage investment in the property market, impacting the broader financial services sector. As for Labour’s ability to manage the economy, confidence remains low given these proposed policies.”
And Kundan Bhaduri, Property Developer and Portfolio Landlord at The Kushman Group, told Newspage: “Starmer is bad for developers and landlords, bad for mortgage and finance professionals, terrible for controlling immigration, weak on Ukraine, and most importantly weak on the issue of support for Israel.”
Chris Barry, Director at Thomas Legal, suggested the housing market may go into the doldrums ahead of the election on July 4.
“In previous years, the lead up to a general election has left the property market like a graveyard,” he said.
“Buyers disappear due to the prospect of waiting for what’s on the other side and vendors tend not to list unless they are forced by personal circumstances.
“The outlook for the year was positive. The spring market was showing much higher volumes than expected, rate reductions were on the horizon and talks of property incentives in the autumn statement were due to help further.
“An election in July will likely mean a reduction in housing transactions until the date and then we will have to wait and see if the first 100 days of the new government will help recover the position.”
Others in the sector welcomed the prospect of a Starmer led government. For example, Samuel Mather-Holgate, Independent Financial Advisor at Mather and Murray Financial, said: “The Conservatives have been as good for the country as too much sugar is to a diabetic. They have caused the housing market to glue up, with home builders sitting on their hands and buyers disappearing.
“For years, the Tories have been out of ideas on housing, business and the economy. Their tax policy has strangled growth and battered business owners. Labour need to flesh out their policies and quick.”
Riz Malik, Director at R3 Mortgages, said: “The UK needs a reset and on July 4 t will get one. With a new administration, possible rate cuts and the feel-good factor returning, this could provide a big boost for the UK housing market. All eyes are on the policies of the next government.”
Ben Perks, Managing Director at Orchard Financial Advisers, said Labour’s shadow chancellor “is acutely aware of the problems facing mortgage borrowers and is engaging with those on the ground to better her understanding”.
Simon Bridgland, Broker/ Director at Release Freedom, said: “Whoever ends up in number 10, a solid reform of housing policy is required.
“Protection for tenants, advantages for private landlords to stop the haemorrhaging of life in this market and a housing minister in office longer than I wear my socks for would be a good starting point.
“Stability and a solid plan to solve the housing issue are long overdue. Labour on their own won’t solve the issue, it needs a bi-partisan agreement if it were ever possible.”
