As the latest chancellor’s Autumn Statement approaches, industry voices are asking how it can boost the delivery of affordable housing
After a politically eventful summer and early Autumn, the industry is looking towards chancellor of the exchequer Jeremy Hunt’s new Autumn Statement, due on Thursday 17 November, and how it might impact the demand for affordable housing amidst the housing crisis.
It is believed that the statement will be more orientated around cutting spending rather than increasing taxes, with possible exceptions in capital gains tax and council tax.
Apart from stamp duty changes, very little from the chaotic September mini-budget remains
Paul Woodward, finance director for Dorset-based affordable housing specialist AJC Group, said: “After a period of much economic and political turbulence, so much is resting on Jeremy Hunt’s Autumn Statement.
“We welcome the fact that the Stamp Duty threshold changes that were put in place in the Mini Budget on 23rd September are being maintained. First time buyer properties are Stamp Duty exempt up to £425,000, which is helping many more hard-working people to get a foothold on the ladder. However, very little else from the Mini Budget – which was only nine weeks ago – still stands, and we all await Thursday’s Autumn Statement.
Energy efficiency must be a priority for both new and old housing stock
“With the Energy Price Guarantee now only being in place for six months – rather than the two years that was originally promised – there should be a huge focus on delivering highly energy efficient new homes and retrofitting existing housing stock. However, the UK’s broken planning system – and the prolonged debacle to determine phosphates, nitrates and nutrient neutrality – means a green light for new development is few and far between.
“For developers such as us who do have live sites, the cost of delivering much-needed EPC-A and B rated homes has sky-rocketed. We are currently delivering 230 affordable, open market, and build-to-rent homes at seven sites across the Wessex region. The cost of labour, materials, plant, and machinery is incomparable to the original budget forecasts. We are very aware of how much this uncertainty is slowing down housebuilding across the country.
“We very much hope for some welcome news and more economic certainty on Thursday, enabling the housebuilding industry to progress with investment decisions and continue to strive towards delivering the 300,000 new homes per annum that the UK desperately needs.”
