Future of housing development under a labour government

Labour’s overwhelming success in the election gives the party, and indeed the prime minister, the chance to live up to key campaign promises. Proposed housing plans and policy changes include preserving the green belt, building more houses, and addressing the housing crisis. It’s key for housing developers to be aware of how these latest political shifts will affect housing development rules and regulations. Read on for all the details you need to know. 

Key announcements

Throughout their campaign, Labour have emphasised plans for wide rental reform. To start, Labour have committed to abolish Section 21, commonly known as “no fault evictions”. Section 21 allows a landlord to evict a tenant/tenants without providing a specific reason. This has been historically described by renters as a way for landlords to exploit renters, allowing for discrimination whilst leaving tenants with little power to challenge them. 

This promised increase in renters rights is also implemented through the proposed extension of Awaab’s Law.  Introduced in the landmark Social Housing Regulation Act (2023) , Awaab’s Law requires social housing landlords to investigate and fix reported health hazards within a regulated timeframe. Labour’s manifesto outlined the intention to extend Awaab’s Law to the private rental sector to also improve living standards in private rented homes. As the law currently stands, it enforces that social housing landlords must: 

• Investigate hazards within 14 calendar days
• Provide a written report of the investigation and clear record of communication with residents and contractors 
• Begin repairs within 7 calendar days (if the hazard poses a significant risk to the tenants) 
• Complete emergency repairs within 24 hours 

With these key announcements in mind, it’s clear that this Labour government intends to introduce rules and regulations that will impact the way landlords and housing developers build and maintain their properties, with a particular focus on the wellbeing and safety of the tenants. A proactive approach by developers and landlords is therefore crucial to ensuring that properties are in line with the latest regulatory requirements. By introducing innovative ventilation and heat recovery systems, with Airflow you can defend against damp and mould in your properties mitigating any risk when new regulations are formally introduced. 

Labour housing policy 2024

Labour’s housing policy focuses on addressing the UK's housing crisis by significantly increasing the supply of affordable homes and reforming the planning system. The party aims to build 1.5 million new homes over the next five years, with a strong emphasis on social and affordable housing. Housing initiatives include prioritising brownfield sites for development, creating new towns designed to accommodate substantial new housing developments and featuring at least 40% affordable housing inclusive of social housing, and reforming compulsory purchase rules to speed up land acquisition. Labour also plans to protect greenbelt land while strategically releasing lower-quality "grey belt" land for housing. Labour’s housing policy also has a clear focus on improving energy efficiency and ventilation, particularly in social housing. With the extension of Awaab’s Law, the party will introduce new financial incentives for developers to improve the living conditions in social housing with improved overall energy ratings bolstered by efficient ventilation and heat recovery. As some areas of the housing policy are not yet outlined, there are areas of uncertainty for planners and developers as they take on new projects. However, incentivised schemes to improve overall efficiency could lead to potential opportunities for developers to include state of the art mechanical ventilation and heat recovery (MVHR) systems in their properties. 

Social housing under a Labour government

Under the new labour government, the party has set out a number of goals to improve social housing across the UK. These included plans to improve efficiency, invest to provide more affordable social housing and create new opportunities for developers. 

To improve the efficiency of social housing, Labour has committed to meet the minimum efficiency standards by 2033. Through their Warm Homes Plan, they plan to invest an additional £6.6 billion to upgrade 5 million homes, with a view to improving overall energy efficiency, and in turn cutting energy costs for families. The party has also stated that they will work with the private sector to finance the acceleration of social housing home upgrades, such as low-carbon heating. In order to achieve these social housing goals, Labour will also introduce new legislation to further regulate the private rental sector. These changes will represent both new opportunities and challenges for developers, as Labour aims to speed up site delivery to deliver more affordable housing. New legislation will lead to the introduction of new development schemes, so that landowners and developers receive fair compensation and incentive to use these schemes. 

A focus on energy efficiency and ventilation

Labour’s housing plans have an undeniable focus on environmental sustainability across the housing market, with the prioritisation of raising energy efficiency standards across private and social housing to meet specific criteria. As such, developers will want to ensure that future housing development meets these new regulatory standards. To do this, it's likely they will need to invest in upgrades and renovations to comply with the latest regulations. Whilst these changes could involve significant initial costs, government incentivised schemes will help developers and landlords to recuperate costs and incur further long term savings, as well as consistent environmental benefits. 

Preparing for change

For housing developers, adapting to new policies- particularly surrounding what needs to be included in new or existing properties- can be daunting. Staying informed on the latest relevant developments is a great way to keep on top of regulatory responsibilities, allowing you time to respond to new developments and initiatives. Be flexible to potential changes, as this could give you the competitive edge by developing high quality, energy efficient and future-proofed housing. Flexibility will also help you to mitigate the risks of non-compliance, allowing you to adjust to new regulatory requirements as they are introduced. 

How Airflow can help

At Airflow, we know that navigating changing housing development policies, plans and regulations can be confusing. That’s why we specialise in mechanical ventilation with heat recovery (MVHR) and continuous running extractor fans, used by developers and property managers to improve the energy efficiency of both social housing and private rental properties. To stay ahead of the curve, take a proactive approach to plans on the horizon and get in touch today to hear about our energy-saving solutions.