ELECTION COMMENT
T
he negotiations to form the historic coalition between the Conservative Party and The Liberal Democrat Party were unprecedented and broad
ranging. Within a very limited time frame the two parties had to resolve differences on may issues so it is hardly surprising that there was little specific news of housing issues and policies. More policies and compromises –
presumably not all of them popular – will be revealed over the coming months but most property professionals have welcomed the coalition government and expressed relief that the election buildup is finally over and we can, we hope, get back to business. The first major announcement on
housing has been the confirmation of both parties pledge to ditch the HIP. The property industry could not have been more unequivocal in their warnings about the implementation of HIPs. The Labour Government’s response to these concerns ended up undermining the policy itself, throwing the baby out with the bathwater by removing the compulsory survey and therefore much of the value of the HIP.
GRANT SHAPPS iS NeW HouSiNG MiNiSTeR
Grant Shapps has been appointed as new Housing Minister. The MP, re-elected for Welwyn Hatfield with a 17,500 majority, tweeted, “On my way to the Ministry to meet the same Civil Service team who have served all four of the Housing Ministers I’ve shadowed. How strange.” However, his appointment is not at all
strange and will be warmly welcomed by most in the property industry. Mr Shapps, Tory Shadow Housing Minister since 2007 has impressed us with his knowledge and understanding of the key issues facing the sector and we at PROPERTYdrum are delighted that David Cameron has recognised his strengths and experience. Commenting on his appointment,
Grant Shapps said, “It’s a huge honour and privilege to be appointed as Minister of State for Housing and I very much look forward to getting down to the issues of State. It’s a role I feel very comfortable in and well prepared for, having shadowed the brief for three years, facing four different housing ministers in that time. I look forward to continuing and developing my relationships with the industry and feel sure that our new Government will be able to make genuine improvements to the housing industry which has suffered so badly under 13 years of Labour Government.” He has also been made a Privy
Main left: “Love the tie, Nick, I think we’ll get on very well!”
The new Government will take a
different approach, but although the plan is confirmed, the timescale for its delivery is far from clear. HIPs may not continue to be a priority among early tasks of a Queen’s Speech and Emergency Budget. The new Government has the option to suspend HIPs ‘unilaterally’, without consultation or legislation, which would be a quick and effective means of demonstrating the potency of a Government in the event of Parliamentary deadlock. Alternatively, a consultation could be carried out and the legislation scrapped as part plan to roll back legislation introduced by the departed Labour Government. Other eagerly awaited housing detail
includes changes to planning regimes, scrapping or diluting various hurdles to make the provision of new homes a simpler process. The new Government has much to do.
H The Good News iPS
Top of most estate agents list is of course the fact that the HIP is to be ditched, with the EPC retained as required by EU law.
MANSioN TAx
The LibDem plans to impose a ‘Mansion Tax’ on all properties valued at more than £32million has been dropped.
CThe Bad News GT iNCReASe
There are fears of a possible fire sale of UK property assets as the new government is expected to increase the flat rate from 18 per cent for non-business assets to
anywhere in the region of 40 per cent to 50 per cent. It is unlikely that the capital gains tax changes would come into effect immediately and we could see residential properties marketed to avoid their owners taking a hit. This is doubly bad for the Private Rented Sector as it may not only take homes out of the rented market, but could seriously limit the attraction of residential investment if the sums don’t stack up for small private investors.
iNHeRiTANCe TAx
The Conservatives had pledged to raise the level of Inheritance Tax to protect the majority of ‘ordinary’ people from losing huge chunks of their inheritance. The plan was for Inheritance Tax to apply only to properties valued at £1,000,000+. This pledge has been shelved as one of the compromises with the LibDems.
PROPERTYdrum JUNE 2010 9
Counsellor – earning him the title The Right Honourable Grant Shapps MP, but he will not be attending Cabinet.
It’s a role I feel very comfortable in and well prepared for, having shadowed the brief for the
last three years.’ GRANT SHAPPS HouSiNG MiNiSTeR
Mr Shapps’ predecessor John Healey was a regular at Cabinet meetings under the Labour administration. Instead, Mr Shapps will work under new Communities Secretary Eric Pickles in the department for Communities and Local Government who will attend Cabinet meetings. Former Liberal Democrat Shadow
Housing Minister Sarah Teather, has been given a role in the Department for Education under Michael Gove.
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