Despite Labour’s positioning as the “party of homeownership,” this year’s Labour Party Conference speeches left much to be desired in terms of concrete plans to make this a reality.
The keynote addresses from Starmer, Reeves, and Rayner repeatedly circled back to familiar territory: the Renters Reform Bill, planning reforms, and what has been dubbed the “biggest boost in a generation” for social housing.
While these initiatives are commendable and essential parts of the broader housing landscape, there was a glaring omission—the demand side of the equation. We heard nothing about how to support those in the squeezed middle, who don’t qualify for government benefits but are struggling to realise their dream of homeownership. These are the young families who, in an ideal world, should be driving the market by purchasing homes. Yet, current planning permission data shows only 7,609 housing projects were approved between April and June this year—the lowest figure since records began in 1979.
This signals a stark reality: first-time buyers, many from the squeezed middle, are not seeing viable pathways to homeownership through traditional means. The government’s target of 1.5m new homes across the next parliament continues to resonate in speeches, but without policies to stimulate demand and incentivise developers, there’s little motivation for homebuilders to transform vacant land into thriving communities.
To be painstakingly clear, I am not advocating for a big stimulus policy from the Treasury to inject a large amount of cash into the market. We must be cautious to avoid past mistakes, such as the Help to Buy scheme, which disproportionately benefited housebuilders and inflated house prices, offering little long-term value to taxpayers.
On the fringes of the conference, there has been much talk about private market investment as a solution. While the Chancellor boldly promised to “put shovels in the ground,” her speech only mentioned the word “house” twice, leaving the industry puzzled as to where the real incentives lie. Even Reeves’ own economic advisers have voiced scepticism, pointing out that planning reforms alone won’t attract the level of investment needed to turn things around. The government must step up and use its influence to encourage pension funds to invest in UK housing, which could spark an estimated 2-to-1 follow-on investment from the private sector.
It’s about balance. Incentives must be carefully structured to stimulate both supply and demand. Without a significant increase in housing supply, we risk exacerbating the current crisis. Additionally, initiatives like Ed Miliband’s proposal to ban private rentals with EPC ratings of D or lower—while necessary for modernising the UK’s housing stock—will likely reduce the availability of rental properties in the short term. According to Knight Frank, 60% of the UK’s 4.8 million private rental homes are currently rated EPC D or below. As landlords face decisions to either retrofit or sell, this could place further pressure on the housing market, driving up rents and home prices even more.
The solution lies in expanding supply. Achieving this will require a multi-faceted approach, greater clarity, and most importantly, greater ambition from both government and the housing sector. Without it, Labour’s goal of boosting homeownership will remain out of reach for those who need it most.”
- Trevor Stunden is a partner at Kettel Homes, a rent to own housing platform provider *
