Budget Announcements on Housing

Today saw Chancellor Philip Hammond deliver the Government’s Budget for the next 12 months where he promised new investment to make Britain ‘fit for the future’.

Alongside announcements of more money for teacher training, greater investment in research and development, infrastructure and the NHS, the Chancellor also made some important promises in relation to housing. The key ones were as follows:

• First-time homebuyers will no longer have to pay stamp duty for properties of up to £300,000, with the Chancellor announcing he is abolishing the charge from today. It will also be available on the first £300,000 of the purchase price of properties up to £500,000.

• The Chancellor has committed to £44bn for housing through capital funding, loans and guarantees. Mr Hammond said the funds will include an extra £2.7bn to more than double the Housing Infrastructure Fund.

• By the mid-2020s the government are targeting 300,000 homes being built a year – the highest level since the 1970s.

• Oliver Letwin will chair a new review into how land is being used for housing. It will report by the spring of next year and if necessary, the government will take powers to intervene to ensure more land is used for housing.

• Plans have been announced to legislate for councils to be allowed to impose a 100% premium on properties left vacant. Several councils, including a number in London, have called for the current 50% cap to be raised. Under the new legislation, owners leaving their properties empty for two year’s would be fined £170,000.

The country needs significantly more homes than are currently being built and there have been countless promises in recent years that these were delivered. Let’s hope the impressive targets announced today are backed up by greater urgency from the Government.