Our Expert's Opinion On Osborne's Autumn Statement 2015

At New Home Finder, we feel the aspiration of owning a new home is closer in view of the Autumn Statement.

The Chancellor has yet again placed the acute shortage of houses at the top of the political agenda.


We are simply not building enough homes to satisfy the demand that has been building since 2007 and will only continue.

Anything that makes the planning system easier and cheaper to deliver is welcomed by all home builders and will hopefully encourage them to progress applications with more confidence of delivery.
Large home builders now hold significant land banks and it’s the smaller/medium builders who have been so restrained by a lack of finance that need to be encouraged to get building again.  Ease of funding, HCA loans and assistance are all being offered and again are a welcome addition that we think will stimulate development.
 

Affordability to the consumer is also key. 


The continuity of Help to Buy and the provision of starter homes at a 20% reduced cost, coupled with a ‘new approach’ of housing associations positioned to sell as well as rent out affordable houses, also helps to create an environment where owning a property is achievable to far more people.
 
At New Home Finder we feel the aspiration of owning a new home is closer in view of the Autumn statement.  For many it’s never been easier to buy a new house and the relaxing of planning laws, green field policy, extension of permitted development rights to name a few, can only encourage new product to the market.
 
The increase in stamp duty for buy to let will increase stock for first time buyers and those moving up the housing ladder and decrease competition from investors.  In essence, providing homes for owner occupiers not investors, who are put off due the diminished yield returns.
 
Political endeavours to build new homes has never been stronger. How the market will react is still to be seen but with such pent up demand, supply has to increase. The question is; will the market provide the right product in the right places to fulfil political motivations and maintain the share prices of the major home builders, who some commentators argue are limiting supply to keep prices high and maintain profit levels. 

In addition, can the UK PLC supply the products, the bricks, and the labour to achieve this political ambition?

If you missed the details of George Osborne's Autumn Statement you can find out write up on the need to know policies for home buyers and home owners just here.

Publish date: 19/02/2016