Labour leader vows to ‘back builders not blockers’ in new housing pledge

Labour leader Keir Starmer took to the airwaves yesterday, promising to "back the builders not blockers" when it comes to homeownership.

Speaking to Sky News' Ian King, the leader of the opposition accused the Conservative Government of "killing the dream of homeownership" for a whole generation by removing housebuilding targets.

In interviews on Times Radio and in The Times, Starmer said a Labour Government would stop landowners and developers sitting on land until values went up instead of moving forward and building more homes. He also said that house prices would come down under a Labour government, adding that he wasn’t afraid to build on the green belt.

His pledges, although with little detail, were met with a mixed response by the property industry.

Brian Berry, chief executive of the Federation of Master Builders, said: “It’s positive news that the Labour Party is backing builders to deliver more homes and committing to remove the blockages stopping them from being delivered.

“However, it’s critical that small local housebuilders have the opportunity to build many of these new homes given they currently deliver just 10% of all new homes, down from 40% over 30 years ago.”

“We must get back to building homes and small, local house builders can lead the charge, delivering high quality homes, fit for their communities.”

Dominic Agace, chief executive of agency franchise brand Winkworth, cautioned that the Labour leader should be wary of intervention affecting the business models of large developers. 

He said: “Land banking allows developers to continue to build through the inevitable property market cycle so they can build even when costs of land rise at the peak of a cycle. 

“Planning issues means that only large developers can afford the delays and costs of the current process. It would be far better to resolve planning so small developers can thrive and we aren't relying only on large housebuilders to deliver new homes.

"As for prices going down under a Labour Government, millions of people are already having to absorb increased cost of debt, having worked years to get on the housing market and now they are being told they could face going into negative equity.”

Agace said the sector needs a stable housing market growing in line with inflation, to ensure ongoing private investment in it to create new homes – “not one of decline and subsequent lack of investment.”

He added: “The housing market is in crisis, with rents rising rapidly recently after a sell-off by landlords in the face of tax changes.  A lack of new homes being built is set to exacerbate structural supply and demand issues for the foreseeable future.  With these issues, housing has never been such a political issue. With that comes the dangers of over-intervention having unintended consequences that add to the problem rather than solve it.

"In some ways both parties are now trying to occupy the same ground, competing for the votes of the first-time buyer and generation rent with proposed incentives for first-time buyers and further regulatory reform to support tenants. 

“In many ways, a Conservative or a Labour government will have the same impact as they push through these agendas, as we start the countdown to the next election and the parties seek to win votes - with the housing market at the core of their pitch to the electorate.”

Support for first time buyers is a positive step, Agace said, but without actual action on supply and planning reform he warned this will be a one hit wonder - with future first time buyers facing an even steeper challenge.

Agace said: “The Conservatives have clearly defeated themselves by missing their housing targets. Labour have spotted this opportunity and are pushing their commitment to build new houses and council houses, which one can only hope they deliver if they come to power.”