Labour upsets Generation Rent by prioritising first time buyers

The Generation Rent activist group has issued a statement appearing sharply critical of Labour’s first new policy on housing in the General Election campaign.

Labour is today launching a permanent extension to the existing Conservative government mortgage guarantee scheme.

The Tory version is open only until June 2025 but Labour says its version would be “more comprehensive” by offering a permanent product for first-time buyers and families looking to get on the ladder.

This will establish insured mortgages as an integral part of the market that lenders and borrowers can confidently navigate. A statement from the party says: “A Labour government will work with lenders and industry on increasing uptake of the scheme and ensure front line mortgage advisors are aware of the product and can confidently offer it prospective buyers who want to get on the ladder.”

Labour is also today reiterating its existing broad-brush housing policies - 

- Planning reform to build 1.5 million homes: in the long-term best way to help young people is to build more homes. “We will reintroduce housing targets, build on disused grey belt land, fast track permissions on brownfield and build the next generation of new towns”;

- First dibs: “work with developers to give local people ‘first dibs’ on new developments, ending the farce of entire developments sold off to international investors before local people get a look in.”

- Tax foreign buyers to fund planning officers: “tax foreign buyers pricing out young people to fund new planning officers to approve homes next generation needs”;

- Reform compulsory purchase rules to get homes built: “reform compulsory purchase rules to stop speculators frustrating housebuilding and squeezing value from infrastructure and affordable housing.  Where necessary we will not hesitate to use reformed compulsory purchase orders to support housebuilding and infrastructure delivery.”

However, there is no mention of rental reform in the statement today, provoking a strong reaction from the activist group Generation Rent.

Ben Twomey, Generation Rent chief executive, says: "Renters deserve security too. While attention to the housing struggles of young adults is welcome, our work or personal circumstances mean not all of us are able to live at home with parents until we save enough to buy our first home. 12 million people are privately renting right now and more than half of us have no savings at all.

“Trying to put aside a house deposit while renting is like pushing a boulder up a hill that keeps getting steeper and steeper. The next government must slam the brakes on soaring rents by limiting the current free-for-all that’s forcing a third of renters’ incomes straight into the pockets of landlords.

“This proposed scheme would make permanent the existing ability for people to buy their first home with just a 5% deposit. But 5% still means £12,497 on the average first time buyer mortgage, and as much as £21,669 if looking to buy in London. If rent rises continue to outpace wage growth, more tenants could face homelessness than benefit from this scheme.”

Sir Kier Starmer, launching his party’s so-called ‘Freedom To Buy’ policy for first time buyers, says: “My parents’ home gave them security and was a foundation for our family. As Prime Minister, I will turn the dream of owning a home into a reality. Our changed Labour Party will be on the side of the builders not the blockers, to get Britain building again. 

“My Labour Government will help first-time buyers onto the ladder with a new Freedom to Buy scheme for those without a large deposit, and by giving them first dibs on new developments.

“Labour backs hard work and ambition, and will clear the way for the opportunity to own a home. It’s time to stop the chaos, turn the page, and rebuild Britain.”

And Angela Rayner, Labour Deputy Leader and Shadow Housing Secretary, adds: “Labour’s new Freedom to Buy scheme will deliver for working people across the country. We will deliver more action on housing in the first year of a Labour Government than this crumbling Conservative government has managed in over a decade.

“Labour’s plan would get Britain building again with a new scheme to help young people get a mortgage and with a housing recovery plan, creating a generation of new towns and unlocking economic growth across Britain.

"Labour is the party of homeownership, and the only Party serious about building the homes Britain needs. We will deliver the change needed and end the Tory chaos.”

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