The property industry is urging the Labour Party to deliver on its pledges on planning reform and more housebuilding after its landslide election win.  

The City reaction to Keir Starmer’s victory was positive this morning.   

On the FTSE 100 index, Persimmon, Vistry Group, Taylor Wimpey and Barratt Developments are among the top risers, rising between 1.7% and 2.5%. The UK housebuilders’ index rose around 2%.  

Analysts say they expect the new government to restore mandatory housebuilding targets, streamline the planning system and increase the amount of social and affordable housing being built — as it bids to build 1.5 million houses over five years.

Barratt Developments chief executive David Thomas says: “The country urgently needs more new homes, of all types and tenures.

“We look forward to working with the new government to help them build 1.5 million homes across the next parliament, unlocking planning and helping first-time buyers access affordable finance, ultimately helping more families own a high quality, sustainable, new home.”  

Together chief commercial officer Ryan Etchells points out: “Before the election, Labour vowed to build 1.5 million homes over the next parliament – effectively re-instating the previous Government’s 300,000-a-year targets. But to achieve such ambitious numbers we need to see real change.   

“We want to see a radical overhaul of the broken planning system to speed up town hall decision-making by removing red tape and unlocking opportunities for developers.   

“There needs to be real incentives for small and medium-sized housebuilders to create quality, modern and affordable homes in the right places to boost local economies.”  

One of the first moves the government could make is on renters, as Labour’s manifesto vows to “immediately” abolish, Section 21, ‘no fault’ evictions and “prevent private renters being exploited and discriminated against.”  

This comes after the Conservative Party’s wide-ranging Renters Reform Bill, introduced last May, ran out of time in the previous parliament.    

Goodlord managing director of Insurance Oli Sherlock adds: “The new government must give the market clarity on what’s happening on renter’s reform.   

“If similar legislation to the previous Bill is set to go through, we need clear information on details and timelines.   

“The election-induced delay is also an opportunity to ensure concerns around Section 21 and court backlogs are effectively addressed, before legislation hits the statute books.”  

National Residential Landlords Association chief executive Ben Beadle says: “We stand ready to work constructively with the new government to ensure changes are fair and workable for tenants and responsible landlords and are sustainable for the years to come.  

“It is vital however that reform does not make worse an already chronic shortage of rental properties to meet demand.”  

Labour has also pledged to get more FTBs onto the housing ladder by making the existing mortgage guarantee scheme permanent and rebadging it as the freedom to buy scheme.  

The move will see lenders offer mortgages with a 5% deposit, with the government acting as guarantor for part of a home loan.  

But some say this plan has always carried significant flaws.  

Quilter mortgage expert Karen Noye points out: “The freedom to buy scheme would see the current mortgage guarantee scheme made permanent.   

“However, the scheme has achieved very little take-up since launch as it does not tackle the fundamental issue of high property prices relative to average incomes.   

“What’s more, with house prices still at risk of fluctuating, negative equity could become a significant issue for those taking such high loan-to-value mortgages.”  

However, after 14 years of Conservative government and 16 housing ministers, the housing industry is determined to get off on the right foot with the new administration.  

Propertymark chief executive Nathan Emerson says: “Propertymark welcomes wide-ranging engagement with the new Labour government to help steer an objective pathway forward for the housing sector.   

“We have seen a chronic undersupply of affordable new housing for many years.  

“Sustainable housing is the foundation for any strong economy and there must be clear and well thought out plans that inspire investment and improve supply moving forwards.”