At 11:30am, King Charles III led the official state opening of parliament, ushering in the start of a new parliamentary year, and the first in which PM Keir Starmer’s Labour Party has been incumbent in over 14 years. This is the King’s second speech to parliament as monarch, his first taking place last November, and sets out the aims of parliament for the next year. Although delivered by the King, the speech is actually written by the government and simply delivered by the monarch, making the speech a direct insight into what to expect of the Labour government in the coming months and years. But what did the King’s speech reveal about the Labour government’s plans for the property market?
What Was In The 2023 Kings Speech?
But first, a recap, the last King’s speech, which was delivered in November 2023, was delivered under Rishi Sunak’s Conservative government. The most pertinent aspects of the King’s speech in regards to the property market were the tackling of inflation, redirection of HS2 funding into regenerating the North, and rental reform.
Since then, inflation has reduced down to ‘normal levels’ and currently sits at 2%, which could lead to a subsequent reduction in the Bank of England base rate in the coming months. Although Network North was not directly referenced by the King in this morning’s speech, he did make reference to devolving powers to individual councils as well as investing in rail infrastructure. Lastly, the King did refer to renters reform, reigniting the discussion of abolishing no-fault evictions that did not quite make it through parliament before the end of the last government. You can find out more about the 2023 King’s speech here, but what did the July 2024 King’s speech reveal about the property market?
The 2024 Kings Speech
Prior to the King’s speech, Prime Minister Sir Keir Starmer released a statement saying:
“Now is the time to take the brakes off Britain. For too long people have been held back, their paths determined by where they came from – not their talents and hard work. I am determined to create wealth for people up and down the country. It is the only way our country can progress, and my government is focused on supporting that aspiration.”
This theme of ‘taking the brakes off’ was prevalent throughout the King’s speech – here are the most important points he made that could shape the property market in 2024 and beyond:
Economic Growth
“Securing economic growth will be a fundamental mission. My Government will seek a new partnership with both business and working people and help the country move on from the recent cost of living challenges by prioritising wealth creation for all communities.”
The King started his speech by expressing his government’s wish to prioritise economic growth across the UK, focusing on devolving financial decision-making to individual nations, councils and mayors. Labour’s focus on regional development aims to distribute economic benefits more evenly throughout the country. This strategy will create new market opportunities across various sectors, making regions beyond major urban centers more appealing for both living and investment. Furthermore, a stronger economy will boost the demand for rental properties as individuals relocate to different parts of the UK for job opportunities, offering developers and landlords a consistent flow of prospective tenants. A stronger economy could also bring forward further reductions in mortgage rates, improved savings rates and incentives to allow first-time buyers to get on the ladder, and strong capital growth across the nation.
Planning Reform
“My Ministers will get Britain building, including through planning reform, as they seek to accelerate the delivery of high-quality infrastructure and housing.”
Planning reform was one of the most hotly anticipated aspects of the King’s speech, and has long been on the Labour party’s agenda. Labour’s reform of the planning system aims to not only add 300 new planning officers to the system but also significantly speed up the process across all areas. Developers will be crucial in this transition, managing the implementation of eco-friendly upgrades and ensuring properties comply with new environmental standards. This change not only benefits the environment but also lowers energy costs for tenants, enhancing the appeal of these properties. The party has also been vocal about reforming the planning system to improve the speed at which new developments come to the market, reducing the backlog of units awaiting approval, as well as carefully considering the use of second-rate greenbelt land – coined ‘grey belt land’ – to build the houses of tomorrow.
Sustainable Practices
“My Government recognises the urgency of the global climate challenge and the new job opportunities that can come from leading the development of the technologies of the future. A Bill will be introduced to set up Great British Energy, a publicly owned clean power company headquartered in Scotland, which will help accelerate investment in renewable energy such as offshore wind”
The theme of sustainability was prevalent in the King’s speech to parliament, and sustainability reform is set to have a direct impact on the property market. After all, the prioritisation of sustainable practices won’t just create jobs across the UK and bring down energy bills – it will boost demand for properties that meet these criteria. In fact, our recent Love Where You Live research highlights that sustainability is already a top priority for tenants across the UK, and this trend is expected to grow. Developers and property professionals who adopt sustainable practices will be in a strong position to attract eco-conscious tenants and investors, thereby increasing their market competitiveness.
Travel
“My Ministers will bring forward legislation to improve the railways by reforming rail franchising, establishing Great British Railways and bringing train operators into public ownership”
The Labour party have been vocal in the run-up to the general election about their commitment to improving infrastructure across the UK. This harkens back to the references to Network North from last year’s state opening of parliament – however, Labour plan to spread opportunity across the entirety of the UK. In their manifesto, the Labour party stated that underserved communities across the UK deserve to see improvements to local travel – be it through improvements to rail, road or bus networks. Connecting communities and underserved regions of the UK will certainly have an impact on the UK property market by putting previously inaccessible areas within commutable distance to cities, large towns and business hubs, thereby making less desirable areas more appealing to both residents and developers.
Rental Reform
“Legislation will be introduced to give greater rights and protections to people renting their homes, including ending no fault evictions and reforming grounds for possession. Draft legislation will be published on leasehold and commonhold reform.”
Over the past number of years, the Conservative government sought to introduce the Renters Reform Bill which would abolish no-fault evictions – however, this bill did not quite make it through parliament before the General Election was called. The King’s speech confirms that the Labour government will seek to continue the proposed reforms to the rental system, as well as re-examining leaseholder rights beyond what the Conservative government did via the Leasehold and Freehold Reform Act. This is something the Labour party have discussed at length in the past, saying that “Labour will act where the Conservatives have failed and finally bring the feudal leasehold system to an end.”
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