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There were no big fireworks but the Budget offers an opportunity to deliver
The Budget leaves associations facing a choice and we must now deliver, argues David Montague
Just before 3.30pm yesterday I sat down with the L&Q communications team to watch the 2018 budget. With the BBC filming down at Barking Riverside we were confident that housing, the government’s number one domestic priority, was going to be front and centre in the chancellor’s speech.
We opened the popcorn as Philip Hammond took to his feet.
In a bullish mood he opened with a welcome to the end of austerity. Such an audacious start surely had to be followed by equally audacious investment plans.
It seemed we were right as he announced plans for Brexit, health, social care, defence – big numbers from a man with deep pockets. It was looking good for housing.
But then he moved on to his plans for school halls, potholes and public lavatories. And we started to think that housing, the PM’s number one domestic priority, had been forgotten. Maybe number twos were more important than number ones.
“The sky was not lit with the thousand sparks of an audacious housing announcement.”
“He is saving the best until last,” suggested one optimistic member of the L&Q team as we chewed on our popcorn – in the same way the biggest firework is always saved until the end of the show. And sure enough, he eventually got to housing.
Mr Hammond started with a reminder that £44bn had already been earmarked for housing, announcing a second wave of nine housing association strategic partnerships and committing to further relief and investment in a number of other areas.
But there was no last housing firework. We all looked skyward. No mighty blast, the sky was not lit with the thousand sparks of an audacious housing announcement.
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On the train home I reflected. And it seemed to me that what is more interesting is what the chancellor didn’t say, or barely mentioned.
Lifting the local authority borrowing cap is potentially massive. With the Local Government Association claiming a £320bn addition to the economy over 50 years and local authorities standing ready to deliver 100,000 homes every year, this alone could be a game changer.
A careful start with 9,000 homes over the next five years, but we all start from nothing.
“Housing associations face a choice – to hand over the future to new market entrants or seize this opportunity with both hands.”
Sir Oliver Letwin’s recommendations for the build out of large sites are radical. All large sites delivering maximum tenure diversity, local authority powers to buy at a capped value; with new local authority borrowing powers this could shift the tectonic plates of housing.
Also included was the rise of private provision for affordable housing and an emboldened, determined and newly empowered Homes England driving change and demanding more, better, faster.
And a challenge from the PM to all housing associations: we have given you everything you asked for, now you must deliver.
Together these things could unite the public and private sectors to deliver a step change in housing supply.
Today, the day after the Budget, housing associations face a choice – to hand over the future to new market entrants or seize this opportunity with both hands.
Housing associations have at the core of their social purpose a burning ambition to deliver. Now we must do just that.
David Montague, chief executive, L&Q
Autumn Budget 2018 - full coverage
All our Autumn Budget 2018 coverage in one place:
The Autumn Budget lacked the ambition we need Philip Hammond’s Budget fell short for housing, writes Melanie Rees
There were no big fireworks but the Budget offers an opportunity to deliver The Budget leaves associations facing a choice and we must now deliver, argues David Montague
Names of new housing association strategic partnerships revealed Homes England has released the names of the eight housing associations that have just signed strategic partnerships with the government.
Budget a missed opportunity on housing, says NHF Reaction to the Autumn Budget from several organisations, including the National Housing Federation
Budget small print reveals significant announcements for housing Housing policies contained in the Autumn Budget and background documents published yesterday will have a large impact, if they actually go ahead, writes Jules Birch
Hammond’s extra Universal Credit cash is welcome – but we need homelessness specialists in Job Centres too The Autumn Budget must not become a missed opportunity to put in place measures to prevent homelessness, argues Ruth Jacob of Crisis
Hammond announces extra funding for Universal Credit: Philip Hammond has announced plans to pump more money into Universal Credit in the Autumn Budget today.
Help to Buy equity loan scheme extended to 2023 for first time buyers:The Help to Buy equity loan scheme will be extended two years to 2023 for first time buyers only, with new price caps set for each English region.
Housing Live - the Autumn Budget 2018 as it happened: Live-blogging from Jules Birch reveals how the Autumn Budget unfolded and what it means for housing
OBR: scrapping council borrowing cap will deliver only 9,000 new homes: Scrapping the borrowing cap will deliver only 9,000 new homes over the next five years, the Office for Budget Responsibility (OBR) has said.
Letwin: builders of large sites must accept more ’diversity’ of tenure: Builders should be required to accept suggested levels of affordable housing for large sites in order to receive government support, including Help to Buy, a major review of housebuilding has concluded.
Chancellor announces strategic partnerships with nine housing associations: Nine housing associations have signed new strategic partnerships with the government to deliver over 13,000 homes, Philip Hammond has announced.
Stamp duty scrapped for buyers of shared ownership homes worth up to £500,000: Stamp duty will be scrapped for first-time buyers of homes for shared ownership, the chancellor has announced.
Autumn Budget 2018 - the key housing policies at-a-glance
- £1bn to help fund the implementation of Universal Credit over the next five years
- £500m in Housing Infrastructure Fund to unlock a further 650,000 homes
- The next wave of strategic partnerships with nine housing associations, which will deliver 13,000 homes
- British business bank guarantees for SME house builders
- ‘Simplification’ of process to convert commercial properties to new homes
- Providing funding to empower 500 neighbourhoods to allocate homes to local people in perpetuity
- Help to Buy equity loan scheme extended by two years to 2023 and limited to first-time buyers
- Retrospective inclusion of first-time buyers of shared ownership in stamp duty relief
