Space and Time Media – Autumn Budget UpdateVTurner
As by now you might well expect, we’ve had a brief look at how today’s Autumn Statement might impact on our property clients’ business.
These are the key points as we see them…
- UK plc is forecast to achieve 2.1% growth during 2016 and 1.4% during 2017. The former is higher than anticipated in March of this year, but the latter is a significant reduction on the previous OBR figure of 2.2%, which the Chancellor ascribed to uncertainty following the Brexit decision
- There will be a white paper published on the housing industry, which will investigate ways of supporting Britain’s undersupplied housing situation
- Public land will be made available for housing
- £2.3bn housing infrastructure fund to create 100,000 new homes in areas of high demand.
- £1.4bn will be made available to construct 40,000 affordable homes
- A pilot of right to buy for housing association tenants will give over 3,000 tenants the right to buy their own home at a significant discount
- Letting agents fees for tenants will be outlawed. It’s unclear as yet exactly who will be squeezed here- will this “lost” revenue for the agent be passed onto the landlord and then in turn be manifested in rent increases?
Successive chancellors are always trying to give a boost to housebuilding, and with some of these schemes already signalled earlier in the year, there’s much here that might sound familiar. But in his first budget statement Hammond has had a very positive reception from the Royal Institution of Chartered Surveyors, who say this plan means he has listened to calls for more housing for rent and affordable homes to buy.
We think £1.4bn is a good start, but more will be needed long term, and the findings of the government’s white paper could prove pivotal.