The Intermediary – July 2025 - Flipbook - Page 48
SPECIALIST FINANCE
Opinion
One year in: Labour
must provide
greater certainty
I
t’s now been over a year since
Labour secured a significant
majority in the General
Election, marking its return
to Government aer 14 years
in opposition.
With a sizeable electoral mandate,
expectations of wholesale Government
intervention and industry reform
was understandably high. The
Government’s ability to deliver on
some of its key campaign promises,
however, has faced early headwinds.
Indeed, the global landscape has
posed significant challenges.
Geopolitical instability – from
ongoing conflicts in Europe and
the Middle East to upheaval in the
financial markets due to President
Donald Trump’s trade policies – has
taken up a lot of the political and
news agenda.
Meanwhile, inflationary pressures
at home and a slower-than-expected
base rate cuing cycle from the Bank
of England have constrained economic
growth, leading to increasing political
pressure from other parties – as well
as rebel Labour MPs.
In combination, these factors
mean the Government has oen
been forced to prioritise shortterm crisis management over
longer-term policymaking.
Lacking momentum
Despite these challenges, however,
the Government has taken some
positive steps. The abolition of the
‘non-dom’ tax status was a flagship
policy delivered early on. But it has
been replaced by a revised residencybased system that allows for a bit
more flexibility for investors while
improving tax revenues. Although
details are still emerging and clarity
from Whitehall remains limited, it
is positive to see the party listening
48
The Intermediary | July 2025
to concerns regarding a hard-line
removal of non-dom status.
Meanwhile, in recent weeks,
a £39bn funding package was
announced to boost housing supply,
alongside commitments to streamline
the planning process – including the
use of artificial intelligence (AI) to
reduce delays. Additionally, a £10bn
investment is being channelled
through Homes England to support
housing delivery.
On paper, these initiatives have
the potential to stimulate the
property market and address some
longstanding structural issues. But
execution is everything – and in this
regard, consistency has been lacking.
There have been several instances
where policies have given way to
confusion. U-turns on welfare reform,
debates over winter fuel payments,
and a high-profile emotional
moment for the Chancellor during
Prime Minister’s Questions have all
contributed to a sense of instability.
For investors, brokers and
developers, the overriding concern
remains the same: a lack of certainty.
Details remain sparse
While it’s encouraging to hear
ambitious policy announcements,
the property sector needs more than
ambition – it needs detail.
Take, for example, proposed
changes to Energy Performance
Certificate (EPC) regulations. A
timeline has been set – new rental
tenancies must qualify as a Band
C or higher by 2028, with all other
rental properties following by
2030. However, the details of what
changes will be required and what
support landlords can expect remain
rather unclear.
Similarly, while the scrapping of
the non-dom tax regime was quickly
PARESH RAJA
is CEO of Market Financial
Solutions
announced, the revised residencybased scheme is still evolving,
leading to further hesitancy among
overseas investors.
What’s more, although money
has been announced to accelerate
housebuilding, the Government has
yet to provide developers with enough
confidence. They need assurance
that demand for new homes will be
sustained, and that market conditions
will remain stable; confidence that’s
hard to come by while Government
fails to increase economic growth and
investor sentiment.
Of course, some factors lie beyond
the Government’s immediate
control. Construction costs, interest
rates, and broader macroeconomic
conditions will all shape the outlook
in the months ahead. But messaging
and direction maer. Whether it’s
planning reform, energy efficiency
regulations, or tax policy, providing
the market with definitive deadlines
and granular detail on delivery
will enable stakeholders across the
property sector to plan, adapt, and
invest with greater confidence.
That clarity is what will allow the
property sector to regain momentum.
In parallel, lenders must continue
evolving their product offerings to
meet the changing needs of investors
and brokers. Everyone across the
sector has a role to play in building a
more stable, forward-looking market.
The past 12 months may have been
about laying foundations – shaky
as they may seem – but as we enter
Labour’s second year in power, the
time for delivering tangible progress
has arrived.
Together, the public and private
sectors can achieve it. ●
