Philip Hammond pledged a £2.3bn housing infrastructure fund to help provide 100,000 new homes in high demand areas and 40,000 affordable homes with rent to buy scheme details still to be finalised. Support for Right to Buy and Help to Buy ISAs are still in place, but the industry, perhaps unsurprisingly with government borrowing still at ‘eye-watering’ levels according to Philip Hammond, didn’t get its Stamp Duty wishes granted.
Here’s what the industry commentators made of it all.
Jeremy Blackburn, Royal Institution of Chartered Surveyors (RICS) head of policy, called Hammond the ‘listening chancellor’.
“For all the rhetoric, David Cameron and George Osborne’s Starter Homes Strategy failed to get off the ground. The Private Rented Sector became a scapegoat under the previous Chancellor, and because of that it suffered. Yet with increasingly unaffordable house prices, the majority of British households will be relying on the rental sector in the future. Now it seems that through the relaxation on grants to deliver a wider range of housing types, Hammond will drive an affordable rental agenda and can get Britain building in a way that benefits a cross section of society, not just the fortunate few.”
Benson Hersch, CEO of the Association of Short Term Lenders (ASTL):
“While there was a modicum of good news where investment in housing was concerned it is disappointing that there was no change to the rather punitive taxation proposal for consumer landlords. The banning of upfront fees by letting agents to tenants is well overdue, I just hope there will be no corresponding hike in fees for landlords as these are already too high and not value for money.”
Ian Cass, CEO, The Forum of Private Business:
“The freeze on fuel duty is welcome for all those businesses involved in transport, and the initiatives to support house builders will be good for those businesses in the construction sector, and its supply chain, but there is not much good news for our high street businesses, and importing manufacturers who are suffering at the hands of the weak pound, and who have no real indication of what a post Brexit UK will look like.”
The lettings agent fee ban
Stephen Smith, director, Legal & General Housing Partnerships:
“Renters from every walk of life, be it students, young couples or professionals starting their careers will be relieved by Hammond’s decisive action today. The removal of these punitive fees will help to alleviate some of the financial pressures tenants have suffered whilst trying to find affordable, quality homes to rent.
“Contrary to initial speculation, the implementation of this policy in Scotland in 2012 does not seem to have had a negative impact either on rents or on the availability of private rented accommodation.”
Ben Madden, managing director of London estate and letting agents Thorgills:
“Without thorough referencing, credit and inventory checks, landlords are sitting ducks and tenants can also lose out. These fees are about protecting both sides. Scrapping these fees could result in unscrupulous agents delivering less, not more transparency.”
On housing
Chris Schutrupps managing director of The Mortgage Hut Group:
“There is a chronic shortage of housing stock, especially at the first-time buyer and affordable homes levels, and that has an impact at every stage in the housing chain.
“We work with a lot of affordable and first time buyer developers and home purchasers and it is very clear to us that the supply of new houses has been nowhere near the level to meet the demand for them. Part of that is tied up in planning regulations and red tape and that has disincentivised developers from moving forward on low cost and affordable home projects.
“We have been told in the past that that will change – I feel more optimistic this time that the change will actually come.”
Andrew McPhillips, chief economist at Yorkshire Building Society:
“Reviewing stamp duty and considering making it a seller’s tax should be a top priority in 2017. House price inflation has significantly outpaced wage growth in recent years, so measures which ease the cost of buying a home are crucial.”
“Our research shows 60% of aspiring first time buyers would be more likely to buy if they didn’t have to pay stamp duty and up-front costs remain one of the biggest barriers to homeownership.
“And it isn’t just aspiring homeowners who could benefit – existing homeowners who want to move up the property ladder would also face a lower tax bill.”
Stewart Baseley, executive chairman of the Home Builders Federation said:
“In the past three years housing supply has increased by 52% and money to deliver more affordable housing will help to broaden the supply base even further. We welcome the moves to increase and align wider public spending on infrastructure to unlock housing supply in areas where homes are desperately needed.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“While we welcome the £2.3bn housing infrastructure fund to build up to 100,000 new homes, there is little concrete detail as to how and when it is going to be delivered and what material difference it will make to the availability of homes so that prices can be kept in check. Everyone knows there is a dire shortage of properties for sale and being built but we need direct policy with a time limit on it.”
