Labour accused of watering down key housing pledges

Deputy Labour leader Angela Rayner and Labour leader Sir Keir Starmer visiting a housing initiative on the campaign trail earlier this month (Photo: James Manning/PA Wire)

Labour has been criticised for rowing back on housing reforms designed to protect renters and boost home ownership.

Under plans unveiled in the party’s manifesto last week, Sir Keir Starmer’s government would increase support for first-time buyers, boost the number of affordable homes and introduce greater protections for people in the rented sector.

But i analysis of the manifesto reveals Labour has watered down its plans on housing originally set out in its national policy forum document last year.

The changes include dropping a target of increasing home ownership to 70 per cent, with instead a more general pledge to boost the amount of people who own their own home, as well as a target to build 1.5m new homes over the next parliament and another to offer support to at least 80,000 first time buyers with the mortgage guarantee scheme.

A target for 40 per cent of new builds in new towns to be affordable from the same national policy document has been changed to a more general pledge to create more affordable homes, while plans for “development corporations” to be a central part of building new towns has been dropped.

A pledge, revealed by i earlier this month, to reform planning laws to make landowners sell at a fair price to help first-time buyers is in the manifesto.

While the Labour manifesto does pledge to increase protection for renters, going further than the current government, some policies that would impact the sector have been scaled back or removed.

Plans set out in the policy document that have not made it into the manifesto included the provision of longer notice periods for private rents, the introduction of a national landlord register, the right to have pets in private rentals and a legally binding Decent Homes Standard for the private rented sector.

Labour had also previously backed a ‘Renters Charter’, which would have included ending automatic evictions for rent arrears, looking at schemes to make tenancy deposits “more portable” and the introduction of a four month notice period for landlords, none of which are in the manifesto.

Labour sources said the national policy forum document had not been public-facing and the policies in it were never officially presented to the public. The party said there was still an “ambition” for 70 per cent of people to own their own homes.

But the watering down follows similar criticism over rowing back on workers’ rights and its green prosperity plan, under which an ambitious target to spend £28bn on investment in environmental projects was scaled back.

How Labour’s pledges on housing have been watered down

• 70 per cent home ownership target in Labour national policy forum document not in manifesto but is still an “ambition”
• 40 per cent new builds in new towns to be affordable dropped for manifesto for more general pledge 
• Reference to “development corporations” being a central part of building new towns has been dropped
• National landlord register, longer notice periods in private rented sector and legally binding Decent Homes Standard that were in national policy forum document have also not made it into manifesto

Adam Peggs, from the think tank Common Wealth, told i: “There are some welcome initial steps to ameliorate Britain’s housing emergency set out in Labour’s manifesto, including a commitment to end no-fault evictions immediately.

“However, omissions on further strengthening renters rights and ensuring at least 40 per cent of housing in New Towns is affordable are both a cause for significant concern. Renters have waited for reform for years and now is the time for ambitious reform.

“For Labour’s New Towns plans to be a success, high levels of genuinely affordable housing is a necessity. Strong tenants rights and public housing build-out are both key to a future based on secure, high-quality housing for all.”

Ben Twomey, chief executive of Generation Rent, said: “Labour’s manifesto sets out clear intent to reform renting, but is light on detail. For the end of Section 21 ‘no-fault’ evictions to lead to proper protections for renters, we need more time to put down roots without fear of our landlords evicting to sell or move into our homes. Longer notice periods whenever we face eviction, and clear mechanisms to prevent abuse, will be vital.

“To stop renters being exploited and enforce higher standards, it is essential that landlords are covered by a new national register and an expanded ombudsman system.

“Although these measures are missing from the manifesto, they were areas the opposition pushed on in debates on the Renters Reform Bill. We hope a Labour government would quickly pick up where the party’s frontbench left things in the last Parliament, and we will campaign for comprehensive reforms from whoever forms the next government.”

A Labour spokesperson said: “A Labour government will reform our planning laws and kickstart economic growth by building 1.5 million homes in five years.

“By getting Britain building, we will unlock the dream of home ownership, with first dibs for first-time buyers and a mortgage guarantee scheme as concrete steps in pursuit of our long-term aspiration to 70 per cent home ownership.

“After Conservatives promised reform to renters but shamefully failed to deliver it, Labour will change the law to properly protect tenants.”