UK Labour Party leader Keir Starmer's new plan to build over 1.5 million homes by the end of his parliament may be doomed before it even starts, thanks to President Donald Trump's surprise move to ban large institutional investors from buying single-family homes.
In a stunning U-turn, Trump announced that he would take executive action to prevent big asset managers and pension funds from snapping up these homes, citing that "homes are built for people, not corporations." The president believes that this stance will help reduce rising rent prices and make it easier for ordinary families to own their own homes.
However, Starmer's decision to court real estate tycoons like Trump is a puzzler. Despite Labour being often at odds with the wealthy elite, the party is now trying to woo them into investing in its ambitious housing program. This appears to be a strategic move to win over the support of the financial sector and get their backing for the new towns plan.
Real estate experts predict that this policy shift could have significant implications for the UK's single-family rental market. With many big players like Blackstone set to lose out, localised areas with high levels of investment are likely to see a surge in demand. Analysts forecast that Trump's announcement will prompt a shift towards the UK, and single-family rentals now account for 40% of all investment in the booming build-to-rent sector.
There are several possible reasons behind Trump's move, but it is clear that he sees it as an attempt to boost his popularity and address his lack of progress on affordability. The recent inflation figures show that rent prices have been a major driver, and Trump is desperate to do something about it before the November midterm elections.
However, this policy comes with its own set of challenges. Big donors who support Trump are heavily invested in the real estate industry, which stands to lose millions if rent prices come down. As such, the president appears willing to bite the hand that feeds him in order to try to remain in power.
Starmer's Labour Party is facing similar concerns about how it will deliver its ambitious new towns plan without government investment. While social housing-led developments could help win over a section of voters who are opposed to Starmer's plans, his own party is struggling to find the necessary funding to make this vision a reality. With many communities already mobilising against the new towns initiative, it seems unlikely that Labour will achieve its goal.
Ultimately, one thing unites renters and homeowners across the UK – their deep distaste for the current government of the day. As housing policy continues to be a contentious issue, it's clear that no party is particularly happy with how things are going.
In a stunning U-turn, Trump announced that he would take executive action to prevent big asset managers and pension funds from snapping up these homes, citing that "homes are built for people, not corporations." The president believes that this stance will help reduce rising rent prices and make it easier for ordinary families to own their own homes.
However, Starmer's decision to court real estate tycoons like Trump is a puzzler. Despite Labour being often at odds with the wealthy elite, the party is now trying to woo them into investing in its ambitious housing program. This appears to be a strategic move to win over the support of the financial sector and get their backing for the new towns plan.
Real estate experts predict that this policy shift could have significant implications for the UK's single-family rental market. With many big players like Blackstone set to lose out, localised areas with high levels of investment are likely to see a surge in demand. Analysts forecast that Trump's announcement will prompt a shift towards the UK, and single-family rentals now account for 40% of all investment in the booming build-to-rent sector.
There are several possible reasons behind Trump's move, but it is clear that he sees it as an attempt to boost his popularity and address his lack of progress on affordability. The recent inflation figures show that rent prices have been a major driver, and Trump is desperate to do something about it before the November midterm elections.
However, this policy comes with its own set of challenges. Big donors who support Trump are heavily invested in the real estate industry, which stands to lose millions if rent prices come down. As such, the president appears willing to bite the hand that feeds him in order to try to remain in power.
Starmer's Labour Party is facing similar concerns about how it will deliver its ambitious new towns plan without government investment. While social housing-led developments could help win over a section of voters who are opposed to Starmer's plans, his own party is struggling to find the necessary funding to make this vision a reality. With many communities already mobilising against the new towns initiative, it seems unlikely that Labour will achieve its goal.
Ultimately, one thing unites renters and homeowners across the UK – their deep distaste for the current government of the day. As housing policy continues to be a contentious issue, it's clear that no party is particularly happy with how things are going.
trump is literally ruining the chances of starmer's plan before it even starts 
i mean what was he thinking? can't believe labour is trying to woo big real estate players like trump in the first place... doesn't that just go against everything they claim to stand for? 
meanwhile starmer's party is stuck with no funding and struggling to deliver on its own plans 
how do they expect to achieve their goal of building 1.5 million homes without government investment? 
it's like a game of "who loses first" between Trump and Starmer 
. I mean, I get that they want their support for the new towns plan, but it feels like a short-sighted move to me. The UK already has enough problems with housing affordability - we don't need politicians further complicating things 
. What do you think is going on here? 
They're both trying to solve the housing crisis, but in such a way that's gonna hurt the people who need affordable homes the most. I mean, 40% of investment is going into single-family rentals?! That's not exactly what I'd call 'affordable' 
It's all just a bunch of politics and greed, if you ask me... 
. I mean, Labour thought they were going to get some big-name real estate players on board, but Trump's move has kinda ruined that 
It's like, Starmer's trying to help people own their own homes, but now it's all being held back by big investors who are just too scared to get involved 
.
. starmer's gamble is gonna pay off or leave him with egg on his face 
either way, renters across the uk are gonna be watching this space closely 
and hoping their voices get heard 