A new world of property investment opportunities and challenges is just around the corner, and the King’s Speech marks a historic turning point. Yesterday, King Charles III officially opened the new session of parliament under the Labour government with an inaugural king’s speech outlining a breadth of legislative changes and public sector initiatives designed to help the incumbent Labour Party revitalise the UK economy. What makes up the arguable core of Labour’s revitalisation plans, however, are its housebuilding plans and the impact they could have on the UK’s hard-pressed housing market.
By now, most savvy property investors are likely aware of Labour’s plans to build 1.5 million over the next five years. We covered the potential impact of those early promises last month in a post-election blog. Although Chancellor Rachel Reeves highlighted the role planning reforms and the reintroduction of mandatory housebuilding targets will play in meeting that target, the specifics of how Labour will work with the private sector to build its homes were still in the air. With the plans laid out in the King’s Speech, property investors have the early insight they will need to align themselves with Labour’s housebuilding ambitions properly.
Are you interested in playing a pivotal role in Labour’s housing market revitalisation? Want to make sure your money will be in the right place over the next five years? For a breakdown and analysis of the King’s Speech and what it means for property investors, look no further than Concept Capital Group.
Housing Market Highlights in the King’s Speech
Leading up to the general election earlier this month, the crux of the Labour government’s campaign was economic growth through reform. The King’s Speech reinforced this notion, with 40 new bills being announced in total – many of which revolve around housing market reform, private rented sector regulation and sustainability.
Among the announced bills, housing market stakeholders should be most aware of the following:
- National Wealth Fund
- Planning and Infrastructure Bill
- Renters’ Rights Bill
Each of these bills could have a profound impact on the state of the housing market, especially for property investors seeking to enter it through traditional routes.
The National Wealth Fund – More Investment in Private Investors
Labour has been open about its desire to establish a National Wealth Fund geared towards investing in new industries and projects that will help build the UK’s technological and ecological future. As highlighted on the GOV.UK website, this fund would seek to mobilise the UK’s institutional capital to unlock billions of pounds of investment in its green and growth industries. Under the plans outlined in the King’s Speech, a projected £7.3 billion in additional funding will be allocated to the UK Infrastructure Bank to drive focus on priority sectors and to scale private investment.
The National Health Fund is due to be set up within a week, according to the latest reports. In the words of Chancellor Rachel Reeves, it will serve as a “concierge service” for private industry stakeholders who wish to invest in Britain, allowing them to withdraw additional funding towards projects that offer sustainability, growth and decarbonisation benefits.
For property investors, sustainable technologies and manufacturing practices could unlock a new reserve of additional funding courtesy of the National Wealth Fund. As it is formally established over the next few months, the National Wealth Fund is expected to become a permanent institution that private investors can take advantage of when backing projects that support a greener, healthier England.
H3: The Planning and Infrastructure Bill – Accelerated Housebuilding for Developers
In 2022, a report by real estate firm Savills revealed that over 30% of local planning authorities failed to build enough homes to meet their housing need. Labour’s upcoming Planning and Infrastructure Bill is expected to “turbocharge building of houses and infrastructure,” forming the phalanx of the government’s new focus on housebuilding. The bill will help address many of the bureaucratic and organisational obstacles preventing local authorities from successfully delivering on housing targets.
In explicit terms, the Planning and Infrastructure Bill will provide more resources to hire the property developers and planners Labour will need to meet its new 1.5 million housebuilding target. The legislation will also simplify the process of consent granting for major infrastructure projects needed to supply vital services to new housing, opening the door for property developers from residential and commercial backgrounds to embark on more ambitious ventures with government backing. As the bill rolls out, property investors will be empowered to get more involved with the wider variety of construction projects being approved.
The Renters’ Rights Bill – New Pressures (and Support) for Traditional Landlords
The subject of renters reform is hardly a new one. Just last year, we released an article discussing the upcoming Renters Reform Bill and the impact it would have on the housing market. And, though the bill has since been stalled and defanged in parliament, the King’s Speech reestablished Labour’s commitment to ‘fixing’ housing in the King’s Speech with the similarly intentioned Renters Rights Bill.
Specifically positioned as Labour’s attempt to correct for the inaction of the Conservative government against the rising rate of no-fault evictions and homelessness, the Renters’ Rights Bill will offer greater protections for tenants and landlords. Namely, the bill will create a more equitable private rented sector by cracking down on trespasses by landlords and implementing systems that ensure full transparency between themselves and their tenants.
In addition to abolishing Section 21 no-fault evictions, the bill will give tenants a greater scope to challenge rent increases and the recent practice of rental bidding wars. The bill will be coupled with a Decent Homes Standard and Awaab’s Law to ensure the health and well-being of tenants are not compromised by poor-quality housing.
Besides protections for tenants, the bill will introduce clearer and expanded grounds for landlords to repossess their properties when necessary. So, while poor-quality landlords and property investors may feel threatened by the increased oversight within the sector, the law-abiding and conscientious among their numbers will likely enjoy more formal and enforceable standards when buying, selling and letting property.
Property Investment After the King’s Speech: The Concept Capital Group Approach
At Concept Capital Group, we offer real estate packages for property investors seeking alternative investment opportunities. Thanks to their real asset classification, our homes are distinct from the legislative oversight experienced by traditional residential property. This not only allows international investors to purchase investment properties with less bureaucratic red tape but also gives them unique investment potential for those seeking to diversify their existing assets. Boasting a fixed monthly rental income, our buy-to-let modular homes are non-depreciating assets designed to remain profitable and secure in times of economic downturn and widespread market uncertainty
As Labour continues to roll out its plans for housebuilding, those seeking socially impactful property investment opportunities that capitalise on renewed interest in public sector housebuilding without the commitment of time and resources customary to traditional property will benefit from the speed, sustainability and affordability of our homes as immediate solutions for social housing within the 136 local councils we operate in.
For more information on investing with Concept Capital Group, book a call with our team today.
