Spring Statement: Housing boost announced
The Chancellor Philip Hammond, in the first ever Spring Statement, has confirmed that the government is moving forward with plans announced in the Autumn Budget to build more homes as part of an investment programme worth £44 billion over the next five years.
The Spring Statement is designed to show how policies brought in as part of the Autumn Budget have been kept on track and where they are achieving successes. When it comes to the government house building plans, the statement has confirmed that the government is on track to increase the supply of homes to 300,000 per year on average by the mid 2020’s.
So far the government is working with 44 local areas on their bids into the Housing Infrastructure Fund and will be doubling the amount the Housing Growth Partnership receives to £220 million. A further £1.67 billion will go to London to fund more affordable homes. The statement also shows that 60,000 first time buyers have so far benefitted from the abolishing of stamp duty on homes under £300,000.
On the skills front, £500 million has also been pledged for the rollout of T-levels and placements, while £80 million is going towards encouraging small and medium-sized businesses to hire an apprentice.
The House Builders Association (HBA) and the National Federation of Builders (NFB) both agree that the government seems to have identified the key areas of concern for the industry, but that the strategy does not yet seem to be in place. They also feel that the target of the mid-2020’s shows a lack of urgency.
Richard Beresford from the NFB points out that bolder reform is needed to get SME builders and constructors onside. This includes planning reform, fairer procurement and a better understanding of the development process.
Related
https://www.gov.uk/government/news/spring-statement-2018-what-you-need-to-know