Philip Hammond, the Chancellor announced in his Autumn statement there would be an extra £2.3bn investment in a housing structure that would build 100,000 additional homes in areas of high demand, and invest a further £1.4 billion for 40,000 more homes.
Hammond stated: “For many the goal of home ownership remains out of reach. The challenge is not a new one but the effect of unaffordable housing on our nation’s productivity is an urgent one.”
However some critics have said that building another 40,000 homes falls way short of the amount that is needed to deal with the housing crisis.
Mark Hayward, managing director of the NAEA, said: “The creation of 40,000 new homes that this new funding is expected to deliver is still painfully short of the number of affordable homes we need to solve the housing crisis and get first time buyers on the housing ladder.
“It is vital that the Government uses this to signal a radical rethink in its housing strategy and consider measures such as building homes on unused Green Belt land to really kick start the house building boom we badly need.”
Hammond also announced regional pilot scheme, giving housing tenants the right to buy their housing association properties, saying that a White Paper outlining how to tackle the shortage of housing would be released in due course.
He also said that he is going to ban all letting fees, saying that a ban would be introduced as soon as possible.
This year the letting industry has already been hard hit by hikes in stamp duty for investment properties and second homes, as well as the wear and tear allowance and reducing the amount of tax relief on mortgage interest. If you would like to have further clarity on how the new changes could affect you then why not pop into your local branch of Intercounty for a chat and a coffee or call our team on 01279 655248.
Source: Property Eye