Labour to give first-time buyers priority over landlords

Local councils would have the power to prevent landlords from buying new homes under plans set out by the Labour party.

Labour has set out its proposals for housing policy following a report by Sir Michael Lyons looking at how to build more new homes.

The party says it will increase the number of homes being built to at least 200,000 a year by 2020 and wants to double the number of first-time buyers by 2025.

To meet this target, Labour has pledged to give local authorities the power to reserve a proportion of homes in designated areas for first-time buyers from the local area. The proportion of new homes where first-time buyers would be given priority could be as much as 50 per cent.

First-time buyers would be first in line for the new properties for two months. Councils would also be able to restrict the sale of homes in these areas so that the properties could not be sold for buy-to-let, or as “buy-to-leave” empty properties.

Labour leader Ed Miliband says: “We will make sure that communities get the benefit from new home development by guaranteeing that where communities take the lead in bringing forward additional developments, a significant proportion of homes on those sites cannot be bought by anyone before first-time buyers from the area have been given the chance.”

Last month the Conservatives pledged to give first-time buyers under the age of 40 a 20 per cent discount on their first home.

Natalie Holt