By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Money Mr.Money Mr.Money Mr.
  • Save Money
    Save MoneyShow More
    Lebara Sim Only Deals
    September 18, 2025
    power savers
    Do power savers work? – Benefits, working and risks!
    June 9, 2024
    UK Railcard
    What is UK Railcard – Try and Save Money on UK Train tickets
    March 31, 2024
    Cheap train tickets
    Cheap train tickets – How to save money on train tickets UK?
    March 31, 2024
    cheapest way to see London
    What is the cheapest way to see London?
    March 29, 2024
  • Make Money
    Make MoneyShow More
    make money online with etsy
    How to make money online with etsy – 2024 Guide
    April 1, 2024
    tutor in UK
    How to become tutor in UK – Side Hustle to Make Money
    April 1, 2024
    UK Money Making Apps
    15 Best UK Money Making Apps
    March 24, 2024
    How to make money online in UK
    Top 15 ways – How to make money online in UK?
    March 24, 2024
    how to make money in uk
    Top 15 offline ways – How to make money in UK
    March 24, 2024
  • Travel
    TravelShow More
    how to get cheap flights
    How to get cheap flights – 20 Tested Tips & Tricks
    April 1, 2024
    British passport 10 year rule
    What is British passport 10 year rule?
    March 28, 2024
    London in one day
    London in one day – London top sights
    March 26, 2024
    best taxi app in UK
    Top 10 best taxi app in UK
    March 24, 2024
  • Explainer
    ExplainerShow More
    Labour government
    What does a Labour government mean for house prices?
    July 8, 2024
    Labour government
    What does a Labour government mean for interest rates?
    July 7, 2024
    Labour government
    What does a Labour government mean for the economy – Know Top 15
    July 6, 2024
    TV licence in UK
    TV licence in UK – Is TV Licence mandatory in UK? Complete Guide
    March 30, 2024
    Moonlighting
    Moonlighting: Can a person do private job and business together in India?
    March 3, 2024
  • Deals & Shopping
    Deals & ShoppingShow More
    Amazon Spring Sale
    Amazon Spring Sale 2024: best deals and expert advice
    March 21, 2024
  • News
    NewsShow More
    Viren Merchant
    Meet Viren Merchant, the Billionaire Father of Radhika Merchant, with a Net Worth of Rs 750 Crore
    March 4, 2024
Search
© 2024 MoneyMr. All Rights Reserved.
Reading: What does a Labour government mean for house prices?
Share
Notification Show More
Font ResizerAa
Money Mr.Money Mr.
Font ResizerAa
  • Save Money
  • Make Money
  • Travel
  • Explainer
  • Deals & Shopping
  • News
Search
  • Save Money
  • Make Money
  • Travel
  • Explainer
  • Deals & Shopping
  • News
Follow US
© 2024 MoneyMr. All Rights Reserved.
Money Mr. > Blog > Explainer > What does a Labour government mean for house prices?
Explainer

What does a Labour government mean for house prices?

Money Mr Team
Last updated: July 8, 2024 11:22 am
Money Mr Team
Share
6 Min Read
Labour government
SHARE

The Labour party’s election victory coincides with a challenging period for the housing market. They won and how question is What does a Labour government mean for house prices? Lets discuss in this article.

Contents
  • What does a Labour government mean for house prices?
    • House prices Conservatives vs Labour Government
    • House Prices will be based on interest rates
    • More Homes may have impact on House prices
    • Labour government impact on House prices

 

What does a Labour government mean for house prices?

Recent concerns about soaring inflation and higher mortgage rates led to predictions of a significant decline in property values.

Although a crash hasn’t occurred, housing prices have decreased over the past two years as households, facing financial strain, have delayed moving.

The new government, led by Keir Starmer, has promised to construct 1.5 million additional homes during its first term and maintain affordable mortgage rates, while also assisting first-time buyers.

The question remains whether this change in leadership will have a meaningful impact on the housing market or if the current trends will continue.

 

House prices Conservatives vs Labour Government

The UK housing market has experienced varying levels of growth under different governments.

During the Conservative-led coalition with the Liberal Democrats (2010-2015), house prices increased nearly by 14%.

In contrast, under Labour’s leadership (1997-2010), prices surged by approximately 175% over 13 years, with a significant spike in the initial five years following Tony Blair’s election win in 1997.

The rapid growth during the Labour era was partly attributed to more lenient mortgage lending practices, including less stringent stress checks and widespread use of interest-only loans.

However, this ease in borrowing contributed to the subsequent housing market crash, leading to stricter regulations and a shift towards more cautious lending practices. These changes have since influenced the pace of house price growth, with prices rising more slowly and steadily in recent years.

 

House Prices will be based on interest rates

For most experts, the trajectory of interest rates is expected to have a far greater impact on house prices than Labour’s policies.

Currently, higher mortgage rates are limiting many home buyers’ budgets and deterring people from purchasing homes.

Richard Donnell, executive director of research at Zoopla, concurs. He adds, “The main driver of house prices is the outlook for base rates. The first cut will boost market sentiment and support sales, which we expect to be 10 percent higher than last year.”

In the long term, Donnell believes Labour’s policies will not significantly alter the housing market. “There are policies to support first-time buyers, but they are more limited in scope, aiming to reduce costs for these buyers. The mortgage guarantee proposed by Labour will help about 5 percent of first-time buyers each year.”

 

More Homes may have impact on House prices

The harmony between the number of homes available and the demand for them significantly impacts the housing market’s well-being.

Recently, Zoopla revealed that the inventory of homes for sale has reached an eight-year high, providing buyers with a wider range of options and contributing to a modest 0.1% decline in house prices over the past year.

Historically, a shortage of supply has driven up house prices, with UK prices increasing fivefold over the past five decades, outpacing the rest of Europe.

If the Labour party fulfills its promise to build 1.5 million new homes in the next five years, it could lead to an annual increase of 65,000 homes entering the market, potentially keeping prices in check.

An influx of new properties could restore balance to the market, making homeownership more accessible and affordable for many.

 

Labour government impact on House prices

The Labour party’s decisive election win may bring a sense of stability to the housing market, potentially boosting buyer confidence. Prior to the election, house prices had been relatively stagnant, with slight fluctuations reported by Nationwide and Halifax in June.

Experts attributed this stability to uncertainty surrounding the election outcome and high borrowing costs, leading many potential buyers to delay their decisions. Now, with a clear government in place, experts predict a possible uptick in housing market activity.

Alice Haine, a personal finance analyst, notes that a stable political environment can instill confidence in the market, particularly for significant financial decisions like buying or selling a home.

Nicky Stevenson, managing director of Fine & Country, expects the Labour victory to positively impact the housing market, leading to increased buoyancy once the political landscape settles. She also anticipates fresh perspectives from the new government, potentially bringing stability to the industry after years of fluctuations.

Overall, experts forecast cautious optimism for the remainder of the year, with a stable government majority benefiting both the property and financial markets.”

Stocks and Shares ISA
What does a Labour government mean for interest rates?
TV licence in UK – Is TV Licence mandatory in UK? Complete Guide
NFTs – Understand Static and Dynamic NFTs
Moonlighting: Can a person do private job and business together in India?
TAGGED:house pricesLabour government
Share This Article
Facebook Copy Link Print
Share
Previous Article Labour government What does a Labour government mean for interest rates?
Next Article Lebara Sim Only Deals
Leave a Comment Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

FacebookLike
InstagramFollow
TelegramFollow

Latest News

Lebara Sim Only Deals
Save Money
September 18, 2025
Labour government
What does a Labour government mean for the economy – Know Top 15
Explainer
July 6, 2024
power savers
Do power savers work? – Benefits, working and risks!
Save Money
June 9, 2024
how to get cheap flights
How to get cheap flights – 20 Tested Tips & Tricks
Travel
April 1, 2024

CONTACT US

MoneyMr.com
Our vision is – Save Money, Save Future!
Contact us: hello.MoneyMr@gmail.com

INFORMATION

  • About
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
Follow US
© 2024 Money Mr. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?