23 Nov Snippets of interest from the Autumn Budget 2017
The Autumn Budget 2017
As outlined in the ‘Housing White Paper’ released by Theresa May earlier this year, the government are determined to fix the broken housing market and restore the dream of home ownership for a new generation. The Autumn Budget 2017 given by the Chancellor of the Exchequer Philip Hammond mirrors similar sentiments. A statistic stated in the Autumn Budget indicates that in England the average house prices are now almost 8 times the average worker’s salary, in London it is closer to 12 times the average worker’s salary. These are staggering figures although not surprising.
According to the Budget summary the only sustainable way to make housing more affordable is to build more homes in the right places! Since 2010 the government has built more than 300,000 affordable homes and wish to continue on in this vein per year!
- The government are going to make available £15.3 billion of new financial support for housing over the next 5 years
- Introducing planning reforms that will ensure more land is available for housing
- Providing £204 million of funding for innovation and skills in the construction sector
- The government are also keen to see Landlords offer longer more secure tenancies to those who want it and will be consulting on any barriers to Landlords.
- Local authorities will be able to increase the council tax premium from 50% to 100% on vacant properties, in a bid to encourage owners of empty houses to bring their properties back into use
Good news for First-time buyers!
First time buyers will now be permanently exempt from paying stamp duty on all properties costing £300,000 and under, in a bid to encourage them to purchase property. Particularly in London this could see the cost of stamp duty halve for first-time buyers, as the average cost of a first-time buyer property is around £400,000.
In terms of First-time buyer led developments, the government will consult on a new policy whereby local authorities will be expected to permission land outside their plan on the condition that a high proportion of the homes are offered for discounted sale for first-time buyers, or for affordable rent. This will exclude land in the Green Belt.
The Help to Buy Equity Loan which is in existence and has helped 135,000 so far, will see a further £10 billion for the scheme.
To read the full budget document please click on this link, The Autumn Budget 2017