Tuesday, 23 March 2021

What Labour’s new housing policy means for you

If you’re renting

It’s likely your rent will go up at the next opportunity. This may or may not be related to the policy changes, since landlords can raise the rent for any reason. Your rent may go up as a result of higher prices for potatoes as well. You didn’t really think that Labour designed this for you, did you?

If you’re owning your own home

This used to be pretty much the norm for most people over 30 in this country, but now it is considered a weird exception. Just go to an open home and check out how many other potential buyers are looking for a family home. Not many. For you, nothing will change because you will still only own one home. And you can’t sell it because in the time span between the sale going through and you buying another home, prices will have gone up so much that you won’t be able to afford it. So stay where you are and don’t rock the boat. And don’t lose your job.

 

If you own a rental property

Not much will change for you either because you can always recover lost income from tax deductions from your tenants. The Real Estate Institute has already threatened that: “Many landlords are likely to increase their rent in the coming years as they look to offset the costs”. With costs they mean income tax. 

 

If you own multiple investment properties

You probably already have all your properties in trusts where you don’t pay any taxes, or claim all of them as your own personal home, so not much changes for you. It’s unlikely that the government will send people around to check if you are actually living in any of these houses. After all, you’re a trustworthy capitalist. 

 

If you’re looking to buy a first home

Come on, really? Dream on. The First Home Grant and Loan scheme? You’ll have to earn the right amount, find a house for less than 60% of the average price and convince a bank to loan you 95% on it – how likely is that?