When Labour came into power last summer, home affordability, housing supply, planning reform and renters’ rights were key priorities.
Pledges were made to deal with all these challenges — but what evidence is there that any real progress is being made?
Recently, the government committed to a new mortgage guarantee scheme, but it is still to provide clearer details on this.
Once again, where the devil is usually in the detail, there seems to be no detail.
Real solutions require collaboration, clarity and a commitment to ongoing dialogue — not just policy headlines that create uncertainty
This is something that ONP Group relationship director Sharon Beedham picks up on.
She says: “The new mortgage guarantee scheme has been positioned as a game-changer for first-time buyers, but at present we’re left waiting for the crucial details.
“Could this be another example of a government announcement that lacks the clarity that businesses and lenders need to make it work in practice?”
Beedham adds: “Without a clear framework on eligibility, risk sharing and long-term viability, how can lenders confidently support borrowers? And, more importantly, how can buyers plan for their future when the rules remain vague?”
Research conducted earlier this year by Santander UK revealed that 85% of mortgage brokers had seen a healthy demand from clients for homes in ‘new towns’ across the UK.
Encouragingly in February, prime minister Keir Starmer proudly announced that up to 12 new towns, each with around 10,000 homes, would begin construction. The timeframe, however, was less encouraging: before the next general election.
The government can promise reforms but, without significant investment in local authority resources, regulatory oversight and tenant advocacy, these policies risk becoming empty gestures
The implication is that we will likely see results only at the back end of Labour’s time in office — possibly used as a pre-election boost?
Fort Advice Bureau mortgage adviser Christian Miles understands the industry’s frustration at the slow pace of progress.
“The proposed new towns, with construction planned before the next election, suggest that any real impact may not materialise until the latter part of Labour’s tenure. Given historical delays and planning bottlenecks, I would be cautious about whether these promises will translate into meaningful results before the next election cycle. Finding resources to build new housing is a huge issue in itself.”
Target Group sales and growth lead Melanie Spencer says the overall consensus across the industry is that everything so far announced by the government sounds promising, but there is growing scepticism over how much of it will actually be delivered.
How can buyers plan for their future when the rules remain vague?
“Alongside planning reform, the most recent Budget announced billions of pounds of funding for 2025/26 for affordable housing and housing guarantee schemes to get smaller housebuilders building,” she says. “The concern is that, while positive, it will still be a small drop in the ocean towards this year’s target — let alone the overall target of 1.5 million homes.
“It begs the question: how will they do what no previous government has done and actually deliver this target? Pushing the problem further into their administration will only make matters worse.”
Spencer continues: “The problem seems to be that, so far, the government’s approach has been too one-dimensional — focusing almost solely on housing delivery. While the supply of new homes is absolutely important and will play a role in improving availability and calming house prices to a point, it’s certainly not a silver bullet — especially with challenges around skills, supply chains and overall market confidence.”
Beedham also identifies a disconnect between government policy and the industries expected to implement it.
She argues that, if Labour is serious about boosting homeownership, it needs to engage directly and transparently with lenders, developers and industry experts before making announcements.
“A well-intended scheme with poor execution helps no one,” says Beedham.
I would be cautious about whether these promises will translate into meaningful results before the next election cycle
“Real solutions require collaboration, clarity and a commitment to ongoing dialogue — not just policy headlines that create uncertainty. It remains to be seen whether Labour will meet its promises and deliver a policy that works in practice or whether it will be another case of announcements without the detail needed to affect real change.”
Another recent headline-grabbing promise from the government was a crackdown on rogue landlords — this is in addition to the wider commitment to reforming the rental sector laid out in the Renters’ Rights Bill .
Black & White Bridging head of credit and operations Heather Hancock stresses that, while Labour’s commitment to cracking down on rogue landlords who exploit the housing benefit system is a step in the right direction, an underlying issue is being overlooked: enforcement capacity.
“The government can promise reforms but, without significant investment in local authority resources, regulatory oversight and tenant advocacy, these policies risk becoming empty gestures. Councils are already struggling with overstretched enforcement teams, meaning that, even with new regulations, rogue landlords may continue operating with little consequence.”
Could this be another example of a government announcement that lacks the clarity that businesses and lenders need to make it work in practice?
Hancock says Labour needs to address the root cause of poor housing conditions: why do some landlords feel emboldened to provide substandard accommodation in the first place?
“A true crackdown requires not just penalties but also a shift in the incentives that allow such exploitation to thrive,” she says.
“Stricter licensing, improved reporting mechanisms and genuine support for tenants and landlords alike are essential. Without these, the promise to clean up the rental sector will remain just that — a promise, rather than a solution.”
This article featured in the March 2025 edition of Mortgage Strategy.
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