Meet The DUP: What The U.K. Government Kingmakers Think About Housing, Property, Brexit And Tax

Following the failure of the Conservative party to win a majority in Thursday’s general election, an alliance has been formed with the Democratic Unionist Party of Northern Ireland that has allowed Theresa May to form a government.

To pass legislation, the Conservatives need the DUP to vote the same way as them. This makes the DUP’s views extremely important to the future of the U.K., as anything they do not agree with may not get through or will be amended.

They are likely to demand increased investment for Northern Ireland in various forms. But what do they think about four of the key issues for the property sector, and how will this therefore affect the policies of the Government?

1. Housing

There is nothing specific about housing in the manifesto for the 2017 election from the DUP. But the manifesto for the 2016 Northern Irish Assembly has a major section on the subject devoted to it. It highlights a party committed to increasing affordable housing that has a firm grasp of the issues around the housing crisis that is affecting all parts of Britain.

“The case for investment in social housing is an unarguable one,” the manifesto says. Policies it proposes include Community Land Trusts, a model that places the land in trust and thus removes it from the cost of the home.

It is an innovative solution that may not make it into national policy, but along with strategies like the local authority bulk-buying rented homes from private landlords to create a government-backed landlord, show that on questions of housing, it will push the Conservatives to put affordability and the private rented sector at the top of the agenda.

2. Regeneration

The 2016 DUP manifesto also shows the party has an understanding of the need to regenerate town centres to improve local economies — unsurprising given how the Northern Irish economy has lagged behind other parts of the U.K. for long periods over recent decades.

“We will examine the scope for the introduction of a Town Centre Regeneration Challenge Fund which local Councils, Chambers of Trade and others could bid for annually to help them develop a range of projects in their towns or high streets to improve their social and physical infrastructure,” the manifesto says.

3. Brexit

The DUP supported Brexit, but the ‘Hard Brexit’ proposed by Theresa May — exiting the E.U. Single Market and Customs Union to control immigration from the EU — seems likely to be modified. In its 2017 election manifesto, numbers six and seven in the DUP's 30-point list of demands over Brexit are:

“[The] particular circumstances of Northern Ireland with a land border with the EU fully reflected,” and “[a] frictionless border with Irish Republic assisting those working or travelling in the other jurisdiction.”

That frictionless border with the Republic of Ireland is very important for the Northern Irish economy, so the DUP likely would not allow a situation where, because no deal has been reached with the EU within the two-year exit period, a reversion to full border control is put in place. This alters the Government’s negotiating strategy. But it is unlikely to mean that greater border control is dropped as an ambition in the talks.

4. Tax

The DUP is a low-tax party, arguing that corporation tax should be at or below the level of Ireland — the lowest in Europe.

"The DUP is committed to deliver 12.5% corporation tax rate in 2018. The shift at a U.K. level to lower corporation tax means the DUP is open to looking at lowering the rate to 10%," the 2016 manifesto says.