Labour’s Green Belt Plans Boost Housebuilders

Labour’s election victory is set to ease construction on the green belt, benefiting developers.

Following Labour’s landslide election win, analysts predict significant changes that will favour developers. Shares in major housebuilders like Barratt, Persimmon, and Taylor Wimpey have already seen a boost.

Investec analysts expect Sir Keir Starmer to implement quick changes, such as reinstating local authority housing targets and strengthening sustainable development rules. These measures aim to support the supply of new homes.

Labour’s manifesto promises to build 1.5 million homes in England and Wales over the next parliament, including the release of low-quality grey belt land from the green belt. Plans also include new towns and city extensions to address housing shortages.

Local authorities will prioritise first-time buyers for new homes, supported by a mortgage guarantee scheme.

Despite a slight decrease in house prices, the market remains stable, with activity recovering. Mortgage affordability continues to be a challenge, but it is expected to improve with lower interest rates and rising incomes.