Post Election Reset – Unlock the Housing Ladder

Local elections across the country, the Scottish & Welsh Parliament are all up for grabs on Thursday and the outcome is likely to prompt – at the very least – yet another reset from the Labour Government.

How we all vote is a matter for our own conscience. But what we expect from our Government is a matter of grave importance for the housebuilding sector (as well as for broader national concern).

After nearly 2 years with Labour in office, every business in the housebuilding sector, including key suppliers like Scotts Timber Engineering, is getting a bit fed up with promises to ‘build baby build’ that come to nothing. The reality is that, since the Labour government took power in July 2024, housebuilding levels in England have fallen, reaching their lowest levels in over a decade early this year.

So when you’re planning your post-election reset, whoever ends up in charge*, please consider this a plea to start unlocking actual housing delivery.

The housing market is often referred to as a ladder, for good reason. Treat is as such:

Replace the old Help to Buy programme to help people get on the first rung of the ladder (the last one has so far generated a net return on investment of £1.02 billion for the Exchequer according to the Home Builders Federation).
Cancel the mansion tax to steady the top end of the housing ladder.
Reduce stamp duty to enable people to climb up and down the ladder when they need to.
Replace punitive business policies with some real pro-growth policies (and quickly) to reverse the rate at which businesses are being forced to lay off staff. The increase in consumer confidence that would follow will free up the middle of the ladder further – remember, housebuilders will only build at quantity when there are people who feel comfortable to buy.

After all, using the HBF’s updated calculator, building just 1,000 new houses:

Supports the employment of 3,475people
Provides jobs for 42 apprentices, graduates or trainees
Increase open space, community sport, leisure spending by £900,000
Generates £45,000,000 towards new affordable housing
Generates £6,250,000 towards infrastructure including £2,820,230 towards new and improved schools.
Generates £26,666,670in tax revenue including £2,012,500 in council tax revenue

James Scott
MD

Source: https://www.hbf.co.uk/research-insight/hbf-housing-calculator/