The Budget announcements by Chancellor George Osborne largely ignored the business of selling or buying homes - to the relief of many in the industry.
After the dramatic announcement to reform Stamp Duty contained in the Autumn Statement in December, some analysts and agents were expecting other measures to be delivered by Osborne in what was his final Budget before the May 7 election.
However, there were some property-based new measures:
- a new Help-To-Buy ISA savings account in which every £200 saved for a deposit by a first time buyer, would receive a government top-up of £50. If individuals put in a maximum of £12,000 the government would put in a maximum of £3,000. More details about this will be announced in the autumn - if the Conservatives are elected to form the next government.
- London mayor Boris Johnson will have increased planning powers over 50 riverside wharves currently operated by Whitehall, opening the prospect for them to be developed for homes. Meanwhile funding will be provided for the London Land Commission to help address the acute housing shortage in the capital and build a register of surplus, public sector-owned land across London.
- the introduction of 20 housing zones across the UK was confirmed, while the eight existing enterprise zones would have their lifetimes extended with two new ones created for Blackpool and Plymouth.
Savills' Lucian Cook, head of residential research, say the Help To Buy ISA is more likely to help get buyers over the deposit hurdle in the lower value, lower growth markets of the Midlands and the North than say London and the South East, where significant constraints remain.
Andrew Bridges, managing director of London agency Stirling Ackroyd, says the extra funding for the London Land Commission to identify the best areas to build will be a boon for the City. He says: Our research has already identified potential space for over half a million homes, with new home hotspots concentrated in East London. London has the capability to meet the demands of its growing population, but the politicians need to take an axe to the red tape if that's going to get the job done.
Not everyone was satisfied with the Budget, however.
Alison Platt, chief executive of the largest UK agency group Countrywide, says the news enterprise zones was good but we encourage the government to go one step further and review the Green Belt to allow more land to be used for building near existing settlements.
Our analysis shows that there is land for 500,000 homes within walking distance of the train stations in the Green Belt around our cities she says.
Paul Smith, chief executive of Haart, says the Budget lacked commitment to increasing housing supply .... without it, significant house price increases are on the cards. While this is positive for owners already on the ladder it will make it even more challenging for those yet to make the leap. A golden opportunity to rebalance the market has been missed.
However, there is consternation in the lettings sector because of a proposed change in sub-letting legislation - see the latest on Letting Agent Today.
Comments
Yes this introduction of a help-to-buy initiative is a step in the right direction, if it's even enforced, but what the UK, particularly London needs, is more affordable housing. The current government seem all too aware of the growth in demand for housing, yet don't appear to be doing a whole lot about it.
Pre-election sweeteners, nothing more, nothing less. The usual smoke and mirror nonsense from the Tories. Wouldn't expect anything less from Osborne.
"Hello there Mr. Vendor - thanks for calling... What's that you say You've heard that first-time buyers can get up to 6k help from the government and you'd like to increase the price on the terraced property you're selling by 7k"