8 industry news
Autumn Statement – the industry responds T
he Chancellor of the Exchequer Phillip Hammond’s first Autumn Statement included some key announcements for
the housebuilding sector. These included £1.4bn of new funding which will be made available to private housebuilders, housing associations and local authorities to deliver an estimated 40,000 homes as part of tackling the housing crisis. In addition, Hammond announced a £2.3bn
Housing Infrastructure Fund to prepare land for up to 100,000 new homes in areas of high demand. The Chancellor also promised to introduce
a ban on letting agency fees, a measure slammed as “draconian” by Association of Residential Letting Agents (ARLA) director David Cox. However there were a wide range of other reactions from the housebuilding sector to the measures announced. The Chancellor also promised he will relax
restrictions on Government grants to allow providers to deliver a wider range of housing types, and a “large scale regional pilot” of Right to Buy for housing association tenants. The Help to Buy and Help to Buy ISA schemes would continue.
Reactions: a warm welcome
Sarah McMonagle, director of external affairs at the FMB: “The commitment to double annual capital spending on housing by 2020 demonstrates that the Chancellor understands that housebuilding and economic growth are intrinsically linked. The best way to protect ourselves from an economic wobble as we leave the EU is to invest in our built environment.” She added: “Key to the success of The
Housing Infrastructure Fund will be to ensure it focuses on unlocking large numbers of small sites – currently the demands of Section 106 and Community Infrastructure Levy can make many small developments unviable. We look forward to the forthcoming Housing White Paper which we hope will include further interventions to boost housing delivery through SME house builders.” Jeremy Blackburn, Royal Institution of
Chartered Surveyors (RICS) head of policy said: “Philip Hammond is something of a political novelty, a Chancellor who listens. He has consulted widely with industry, as I’m sure he will as Britain moves closer towards Brexit. “It’s something of a wait and see statement –
the detail won’t be revealed until the publication of the White Paper, but he clearly understands the housing sector better than his predecessors. “There has been a 15 per cent decline in
house sales to first time buyers. The Private Rented Sector became a scapegoat under the previous Chancellor, yet with increasingly
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unaffordable house prices, the majority of British households will be relying on the rental sector in the future. “Through the relaxation on grants to deliver a
wider range of housing types, Hammond is driving an affordable rental agenda that benefits a cross-section of society.” Terrie Alafat CBE, chief executive of the
Chartered Institute of Housing (CIH): “Given the scale of our housing crisis the central focus on housing in the Autumn Statement is a significant step in the right direction. The extra investment for 40,000 new affordable homes and the greater flexibility in funding for housing providers for all tenures are particularly welcome. Brendan Hodges, senior associate director at
Daniel Watney LLP: "The Government has demonstrated a clear understanding of the scale of the challenge we face. Additional funding to support new infrastructure areas with high housing demand is particularly welcome, as is the focus on delivering affordable housing for London, where affordability issues are greatest. "However, the Chancellor can support
accelerated housing delivery where the results can be seen quickly by properly resourcing our planning system. Local planning departments are under-staffed and borne the brunt of funding cuts. “We keenly await news of the additional
resourcing for council planning teams that Housing Minister Gavin Barwell has trailed”. Nicholas Harris, chief executive designate of
Stonewater: “We’re cautiously pleased to see a more ‘flexible’ housing programme that responds to local market needs and we look forward to more details on this. “The funding, coupled with the relaxation of
restrictions on government grant, will enable social housing providers to boost housebuilding across a wider range of housing types. Peter Tooher, executive director at Nexus
Planning: “It will be interesting to see how the £2.3bn Housing Infrastructure Fund will work in practice. To overcome frequently entrenched local objections to new homes, the fund would benefit hugely from some direct involvement from housebuilders and the community in making choices on how money is spent at a local level.” John Goodall, CEO and co-founder Landbay:
“The commitments to housebuilding to address the chronic supply/demand imbalance won’t bear fruit overnight – even 2020 may not be a realistic target if past pledges are anything to go by. In the interim, it’s vital that the private rented sector is supported. Cutting letting fees is a measure but Hammond could have gone further.” Julia Evans, BSRIA chief executive: “The Chancellor delivered a comprehensive raft
Autumn Statement: housebuilding
• £2.3bn housing infrastructure fund to unlock land for housing and deliver infrastructure for up to 100,000 new homes in areas of high demand
• A £1.4bn affordable housing fund to deliver 40,000 additional affordable homes
• £3.15bn for 90,000 affordable homes in London
• Ban on letting agency fees “as soon as possible”
of policies that will support the construction industry at large. However, it was disappointing to see no mention of the environment. “The UK’s housing crisis is one of the biggest
challenges we face as a country; BSRIA members continue to report that a lack of affordable homes is damaging their ability to recruit and retain staff.” John Anderson, executive director, Kier
Living: “We welcome the Housing Infrastructure Fund which will allow projects to deliver new roads and water connections. Many sites are technically constrained so this will help to unlock potential for sites where new houses are needed the most. “It is great to see an allocation of money to
support the wider mix of house tenures – while we acknowledge the ongoing problem in falling home ownership there is a greater need for other forms of affordable housing. “
Not totally convinced...
Liam Bailey, global head of research at Knight Frank: “After several years of seemingly endless property tax reforms, the absence of new announcements on property taxation leaves unaddressed the drag on market liquidity caused by high stamp duty.”
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