Labour conference: Party pledges to cap foreign sales of new homes

Labour says it would cap the amount of property overseas investors can purchase in new developments, in a bid to help first-time buyers.

Under plans to be outlined at its annual conference, the party would also give first-time buyers "first dibs" on new builds for six months.

It will also pledge to reform rules governing how developers contribute towards affordable housing.

And it will pledge to give councils new powers to buy land for homes.

The conference, starting in Brighton on Saturday, will give party leader Sir Keir Starmer his first chance to set out his stall to members in person.

It comes amid an ongoing policy review, where the party will decide how much of its policy offering it should change from the Jeremy Corbyn era.

In a speech on Sunday, Labour's shadow housing secretary Lucy Powell will set out the party's plans to build "more truly affordable homes".

"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.

She is expected to accuse the Conservatives of becoming the "party of speculators and developers", treating property "as a commodity, not the bedrock of stable lives and life chances."

And in a move to occupy traditional Tory territory, she will call Labour the "party of home ownership".

She will pledge to change England's planning rules, so that half of the homes in new developments cannot be sold to foreign investors.

The party says this will help first-time buyers by preventing properties being sold off-plan to developers before local residents can buy them.

The policy is an evolution of the party's position at the 2019 election under Jeremy Corbyn, when it proposed a new tax on foreign buyers.

In its 2019 manifesto, the party also promised first-time buyers "first dibs" on new housing - but did not specify for how long.

Ms Powell will also recommit to several Corbyn-era housing policies, including linking the definition of "affordable" homes to average wages, not rents.

The party is critical of the government's current definition, which allows affordable rents to be set at up to 80% of the local market rate.

She will also set out plans to allow local authorities to buy land more cheaply from private owners when completing a compulsory purchase.

Councils are currently not allowed to buy such land at agricultural value - instead having to factor in the prospect of future planning permission, which makes it more expensive.

Labour believes changing this could enable councils to buy more land for affordable housing, and give them a stronger hand with developers.

The party had proposals in this area under its previous leadership, when it proposed setting up a "sovereign land trust" to buy property.

It will also renew its criticism of rules under which developers negotiate with councils to build affordable homes, or contribute cash towards them.

The party has criticised the current system as too lax and favourable to developers.

A Conservative spokesman said Ms Powell's housing speech "amounts to a series of rehashed and failed policies from Jeremy Corbyn or Sadiq Khan."

"It once again goes to show Labour under Keir Starmer have absolutely nothing new to offer our country," he added.