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Affordable house building the focus of Autumn Statement

Affordable house building the focus of Autumn Statement

By Maurice Shasha  //  Mon 28th November 2016
Find out what the Autumn Statement 2016 will mean for the property market in Knightsbridge and Marble Arch
The need for affordable house building formed the focus of new Chancellor Philip Hammond's Autumn Statement.

To meet what the Chancellor called the 'housing challenge', a £2.3bn Housing Infrastructure Fund will provide 100,000 homes in areas of high demand. London will receive its share, with £3.15 billion being set aside for 90,000 new houses in the capital, while a further £1.4 billion will deliver 40,000 affordable homes.

Buying a home, especially in London, is still a dream for many, but the Help to Buy scheme remains intact. As demand continues to outstrip supply, these measures are more than necessary.

The changes many in the property industry were hoping for have not materialised, however, with no mention made to stamp duty reform.

The extra 3% stamp duty surcharge on second homes and the higher rates on properties priced over £1.5 million have been blamed for a slowdown at the top end of the market, including Knightsbridge. Prices and sales in prime Central London have fallen, and this has led to a lack of supply in the middle of the market.

In another development, the Chancellor has pledged to ban letting agents' fees for tenants 'as soon as possible' in a bid to make renting more affordable for tenants. However, many believe this extra cost for landlords will eventually be paid for by tenants through higher rents.

Productivity and the need to invest further in transport and infrastructure was also a focus in the Chancellor's speech. With the triggering of Article 50 looming, the need for economic growth and continued investment is essential.

To read more about the Autumn Statement 2016, click on the link below:

BBC News

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