Labour to pledge ceiling on overseas investments in new homes

THE Labour is expected to announce several reforms in its housing policy to make the real estate market more affordable for first-time domestic home buyers by pledging to restrict access to foreigners.

When the party’s top functionaries, including leader Sir Keir Starmer, assemble at Brighton for its five-day annual conference from Saturday (25), shadow housing secretary Lucy Powell will unveil a policy that would pledge to help lower-income groups own houses in England.

She will vow to set a ceiling on purchases by overseas investors when houses are built in new developments and allow “first dibs” for first-time buyers.

According to the new vision of the Labour Party, foreigners should not be allowed to purchase more than half of the houses in new developments.

The expected announcements will be an evolution of the party’s policy which previously proposed additional taxes on overseas buyers of properties.

“It will also pledge to reform rules governing how developers contribute towards affordable housing”, the BBC reported.

Powell will outline the party’s plans to empower local councils to buy land at lower rates for building homes and help the country ride out of the “housing crisis it is facing".

Under the existing rules, councils cannot buy land at agricultural value from private owners, a regulation that makes properties less affordable for eventual home buyers.

She is expected to articulate how the Labour’s policy would be different from that of the ruling Conservative which, according to her, is a party of “speculators and developers” that treat property "as a commodity".

"Our country is facing a housing crisis with the link between hard work and getting on the housing ladder broken for many," she will say, according to the BBC report.

It will be the first Labour conference in two years as the party could hold the annual event last year because of the pandemic. Starmer, who took over as the Labour leader from Jeremy Corbyn, will be under scrutiny as he trailed prime minister Boris Johnson in polls.

Starmer will deliver his speech on the final day of the conference on Wednesday (29).