70% of housebuilders want Labour to win General Election, says Knight Frank

A whopping 70% of housebuilders say that they would prefer a Labour government after the next general election as they believe it’s the party more capable of enhancing the country’s land and development market, research from Knight Frank reveals.

Its Land Index & Housebuilder Survey, published later this week, reveals market views from 50 volume and SME housebuilders who together build around 70,000 homes per year in England.

DEVELOPMENT MARKET

But just 30% of respondents said the Conservatives would be mostly likely to enhance the land and development market, while none of the respondents believed the Liberal Democrats would have a positive impact on the land and development market.

Labour has pledged to release low quality green belt land, dubbed ‘grey belt’ for development, and give local authorities increased powers to help meet their area’s housing need.

Of the 70% of respondents who said they thought Labour would be most capable of enhancing the country’s land and development market, 70% were large volume housebuilders and/or big London developers.

Of the remaining 30% of respondents who said they thought the Conservatives would be most capable of enhancing the country’s land and development market, 64% were smaller/regional/SME housebuilders who deliver up to 50 units a year.

POLITICAL CONSTRAINTS

Charlie Hart, Head of Development Land at Knight Frank, says: “Housebuilders are facing planning and political constraints right now and, unfortunately, there’s a lack of trust in the current system due to the absence of coherent long-term strategy and insufficient land supply.

“Ahead of this year’s election, housebuilders will be looking for the party that can offer strong leadership and support increased housing delivery through planning reform, industry engagement and addressing nimbyism.”

And he adds: “As the Help-to-Buy chapter closed without a sequel many housebuilders are feeling the effects – namely a decrease in housing demand.

“Labour’s promise of ‘first dibs’ for first-time buyers and a streamlined planning process has clearly struck a chord. While the Conservatives have promised a tightening of green belt restrictions, Labour’s pledge to unlock “grey belt” will be eye-catching, offering hope to frustrated developers.”