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Sector welcomes Budget but warns it does not go far enough
Sector bodies have welcomed the chancellor’s housing-focused Autumn Budget, but called for more action to lift supply and improve affordability.
But umbrella bodies representing various parts of the sector called for more action on land and planning to lift housebuilding. It came as the Office for Budget Responsibility declined to lift its estimates for the supply of new housing following the Budget.
Funding on affordable housing was limited to an offer of £1bn extra borrowing power for local authorities to build new affordable homes.
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David Orr, chief executive at the National Housing Federation, said: “Today’s package of measures are a good signal of intent from the chancellor. On their own, they may make an incremental difference but will not deliver a step change in the supply of new homes.
“While the chancellor is right to say there is no silver bullet, a long-term supply of affordable land is the critical factor. We will need government to ensure that public land is used for housing and that private land is bought where it is needed to create new communities.”
Gavin Smart, deputy chief executive of the Chartered Institute of Housing, added: “We particularly welcome the government’s ambitious new target to deliver 300,000 new homes a year.
“We have to make sure that any new funding supports the building of new homes that meet the varied needs of individuals and families across the UK. For many people social rents, which are much cheaper than private rents, remain the only truly affordable option and more must be done to support this crucial form of housing.”
Stewart Baseley, executive chairman of the Home Builders Federation, said: “The measures announced today will assist by stimulating demand and helping broaden the supply base of new homes. But much more needs to be done, in particular with regards to the planning system, if the target is to be met.”
Sadiq Khan, the Labour mayor of London, who reacted positively to last year’s Autumn Statement and the Housing White Paper, slammed the measures as an “astonishing failure on housing”.
He said: “The chancellor did not announce a penny of extra grant for affordable housing in London – even though we know the current spending is less than a fifth of what we need. This government is all talk and no action on housing.”
Lord Gary Porter, Conservative chair of the Local Government Association (LGA), said: “The LGA has long called for councils to be given greater freedom to borrow to build new homes and today’s Budget has taken a step towards that by lifting the housing borrowing cap for some councils. This is an important recognition of our argument about the vital role that councils must play to boost homes for local families in need and solve our housing crisis, but does not go far enough.”
KEY BUDGET MEASURES AT-A-GLANCE
- Investment of £44bn in housebuilding in capital funding, loans and guarantees over the next five years to boost supply of skills, resources and land
- Commitment to be building 300,000 homes a year by mid-2020s
- £1.5bn package of changes to Universal Credit announced. This includes the scrapping of the seven-day waiting period at the beginning of a claim, making a full month’s advance available within five days of a claim for those that need it and allowing claimants on housing benefit to continue claiming for two weeks
- Lift council borrowing caps in "high-demand areas"
- A £125m increase over two years in Targeted Affordability Funding for Local Housing Allowance claimants in the private sector struggling to pay their rent
- New money into Home Builders Fund
- Extra £2.7bn for Housing Infrastructure Fund
- Invest £400m in estate regeneration
- £1.1bn on unlocking strategic sites
- Stamp duty for first time buyers on properties worth up to £300k will be axed, while the first £300k on properties worth up to £500k will also be scrapped
- Three new Housing First pilots announced for West Midlands, Manchester and Liverpool
- Councils to be given the power to charge 100% council tax premium on empty properties
- Government will launch a consultation to barriers to longer tenancies in the private rented sector
- £38m for Kensington & Chelsea Council for mental health and counselling services, regeneration projects in areas surrounding Grenfell Tower and a new community space
- Invest in five new garden towns
- £125m increase in Targeted Affordability Funding for Local Housing Allowance claimants in the private sector struggling to pay rent
