As the weeks roll by, more of Labour’s property plans are coming to light.
There is much to iron out, but certain changes can be banked on. It’s been confirmed that the government plans to reintroduce minimum EPC requirements for landlords, with all rental properties needing to have a C rating by 2030.
A Renters Rights Bill is on the way, which is set to abolish section 21 repossessions, enhance tenant rights, apply Awaab’s Law to the PRS and more. Elsewhere, the chancellor vowed to reform our planning system, push into the green belt, and cut bureaucracy.
However, the question remains: how will all this be paid for? Sadly, it’s been confirmed that some taxes will have to rise in the autumn budget, so capital gains tax, inheritance tax, and other taxes adjacent to the property market may become more costly over the coming months.
The reaction to all this has been dour, to say the least, but when you gather insight from actual property market participants, it’s notably harder to find a pessimistic outlook.
For our independent Q3 research, we surveyed 2,000 representative UK adults, of whom 412 had either bought a property in the UK in the prior year, or were in the process of doing so. We surveyed them on the key priorities that are affecting/affected their property purchases, as well as their general outlook on the market.
The results showed that despite all the alarmism, most homeowners and/or homebuyers appear cautiously optimistic on the new government. Just over half (57%) either somewhat agreed, or strongly agreed that the passing of the general election will bring more stability to the UK’s property market.
Also, 68% felt that building more homes should be a top priority for Labour. Perhaps they want to take advantage of this, as 61% believed that UK house prices will rise over the coming 12 months.
This should be good news for providers in the property scene. However, lenders and other players do not appear to be matching their customer’s drive. Nearly two-thirds (65%) said they felt obtaining finance (such as a mortgage) to purchase a property is stressful. Meanwhile, 66% said the process of buying a property in the UK is too slow and complicated.
Evidently, players in the specialist lending market need to step up. Where high-street banks and mainstream lenders may struggle in the market, as they have been in recent months, bespoke providers have a clear role to play.
We’re there for borrowers with flexible solutions for a complicated, hesitant market. But, what kind of investments or purchases may borrowers be turning to us for?
Our results show that refurbishment finance may end up especially popular soon. Homeowners are after high-quality homes, with plenty of connectivity. Broadband and mobile connectivity took the top spot (82%) for importance for our respondents. While garden and/or outdoor space (76%), proximity of public spaces and parks (74%), and the quality and finish of the property (74%) also ranked highly.
Where property investors and homeowners are undeterred by a new government, or negativity from pundits, we will be there with the funding they need to progress — whether that be residential loans for purchases, renovation funding for upgrades, or BTL capital for expanding landlords.
