General Election 2010: Party home truths

By Andrea Watson
Posted: 2010/04/30

MANY people will be wondering what the result of the General Election 2010 holds for the future of our homes and the housing market.

There are a host of issues: the lack of affordability, banks not lending enough and the perennial headaches of planning and development.

One of the Conservatives' big ideas for the General Election 2010, snatched by Labour, is helping first-time buyers by permanently removing stamp duty on homes under £250,000. The difference is that Labour will waive the tax for only two years. Another, also copied by the Lib Dems but definitely not on Labour's agenda, is to hand decisions on planning power back to local authorities.

James Garland, director of Green Issues Communications, said: "David Cameron and Nick Clegg are both of the view that the current top-down, target-driven planning system simply doesn't work.

"Both parties would scrap the unelected and unpopular Regional Development Agencies in favour of a system that empowers local people to participate in drawing up local plans for development in their area."

"Labour on the other hand believes that the Government is best placed to decide what gets built and where, and that the best way to deliver this is through its quangos such as the Regional Development Agencies and Infrastructure Planning Commission. While this has proved unpopular with communities, it has sought to bring some certainty to the planning system."

The idea of devolving power to local councils may be popular with voters but the housebuilding industry is concerned that it will stifle development. Bob Weston, managing director of Weston Homes, said he doubted that shadow housing minister Grant Shapps' talk about turning Nimbys into Yimbys (people who say "Yes, in my backyard") would work.

Many other developers believe that unless councils are forced to accept unpopular developments they will refuse to do so.

Ian Baker, managing director for Galliford Try Home, said: "There is no clear election winner. The Conservatives' 'localism' approach to planning could further hinder the delivery of housing, yet Labour's planning system remains in need of improvement."

Broadly, all parties agree we need to build more new homes, faster.

"It isn't the case that the Conservatives or Liberal Democrats intend to build fewer new homes.

Both parties point out that the more centralised the system has become, the less has actually been built, " Mr Garland said. The big problem area is finance. No party gives much detail here and there are fears a hung parliament could create more mortgage misery.

David Bexon, managing director of smartnewhomes.com, said: "Both parties are light on any policies which will really make a difference to the property market, such as pressurising the state-owned banks to offer high LTV mortgage products and at better rates." Neil Young, chief executive of property portfolio managers Young Group, said: "Neither party has provided a clear steer on their intentions [of] encouraging a widespread return to lending."

Private landlords come to the fore in Labour's manifesto which pledges a national register. Liz Peace, chief executive of the British Property Federation, said: "This manifesto wholly fails to recognise the private rented sector's contribution to UK housing. A leftist crackdown on landlords will simply stifle growth."

Finally, public spending cuts also concern housebuilders with some fearing shared equity could vanish.

Mr Baker said: "Cuts could impact on the popular shared equity schemes like HomeBuy Direct and take away Kickstart funding."