Budget 2018 new homes initiatives welcomed

 

Measures in the recent Budget that could result in many more new homes being built to help alleviate the housing crisis have been cautiously welcomed.

Chancellor of the Exchequer Philip Hammond  announced last week that the Help to Buy scheme would extend until the end of 2023. Help to Buy currently offers a government-backed loan of 20% in addition to the 5% buyer’s deposit when buying a new-build home, and it was recently hailed as an “unmitigated success” since its launch in 2013 by the Home Builders Federation.

Mr Hammond also revealed that an extra £500m would go into the Housing Infrastructure Fund to help build an additional 650,000 new houses. And an additional £1bn has been allocated to support SME housebuilders.

Help to Buy extension hailed

“The extension of the Help to Buy Equity Loan scheme to 2023, announced in the Budget, will give developers the confidence to push on with new projects,” Patrick Gower of Knight Frank told Property Wire. He also found encouraging signs in the number of energy performance certificates for new houses being issued, which has risen by 2.3% over the year to the third quarter of 2018, to their highest levels in a decade.

The Chancellor also revealed that the government will consult on relaxing planning rules, allowing some of the 50,000 empty shops in the country’s towns and cities to be turned into residential homes.

The Federation of Master Builders had welcomed the plans, saying that between 300,000 and 400,000 new homes could be created if all empty space above high street shops was used.

“The government’s latest tack of introducing sensible policies that may make modest but positive changes should be commended,” Mr Gower added in Knight Frank’s assessment of the 2018 Budget.

Utilising high street properties

“Enabling developers to change empty shops into homes could also ease housing shortages a modest amount in areas with struggling high streets. Meanwhile, Homes England’s new five-year plan to use its land, money and influence to increase the pace and scale of housing delivery – particularly on the tricky sites that have fallen out of favour – could herald real results.”

The 2017 Budget unveiled plans to build 300,000 new homes a year until the mid-2020s. However, forecasts from the Office for Budget Responsibility say that the net amount of new homes will hit 246,000 in 2019 and remain at that level.

Help to Buy has increased the amount of new homes being built, as Peter Gower adds, “…through Help to Buy alone, hitting the 300,000 target by the middle of the next decades looks increasingly unlikely.”

CityGreens, Solihull, Birmingham

City-style apartments directly on Birmingham's largest park

  • Limited pre-launch prices.
  • ZERO ground rent
  • Excellent tenant demand

£182,000 - £419,000

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

UK affordable housing backed by world’s largest property investor

Budget 2018 new homes initiatives welcomed

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.