Osborne’s Autumn Statement

Big Ben in London, United Kingdom

In today’s Autumn statement Chancellor George Osborne has revealed plans to double the housing budget to £2billion in order to fund the build of 400,000 affordable homes by 2020.

Approximately half of the homes built will be available to purchase under the government’s shared ownership scheme and will be available to households earning less the £80,000 outside of London and £90,000 within London.

Osborne went on to announce that local authorities will no longer be able to set their own restrictions on eligibility, these restrictions will be removed and the planning system reformed in order to deliver the number of affordable homes promised.

A new pilot scheme will also be launched this evening with five housing associations across the country offering its tenants the right to buy the homes they currently reside in.

This all sounds like promising news for those trying to get their foot on the property ladder. Commenting on today’s Autumn Statement, Alison Platt, Chief Executive of Countrywide plc, said:

“The announcement of the Chancellor’s housebuilding ambitions are a welcome step forward in the process of redressing the chronic housing shortage we face today. Expanding the starter homes programme to include shared ownership will see more options for struggling first time buyers.

“The proposed changes to the planning process will lower the height of the hurdle that planning presents for developers, we think this will help get more homes built, which is what we need.

“While pursuing home ownership is certainly part of the route to a healthier housing market, the government needs to recognise the tide of structural changes fuelling the growth of the private rented sector. The growing private rented sector needs support, with incentives for creating quality stock and effective regulation to encourage great landlords.”

Not such great news for existing home owners however, as it was announced today that stamp duty for buy to let properties and second homes will be increased to 3% from April 2016. Osbourne’s reason for this is to raise £1 billion for the treasury which he plans to reinvest back into developing new homes in local communities where people are currently being priced out of the market.

In his statement Osborne said: “Frankly, people buying a home to let should not be squeezing out families who can’t afford a home to buy. So I am introducing new rates of stamp duty that will be three per cent higher on the purchase of additional properties like buy-to-lets and second homes”

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Posted by: Laura Ellis Categories: Economy, House Prices, Latest News, Property News, Uncategorized Tags: , , , , , Comments Off on Osborne’s Autumn Statement

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