Whilst the Spring Statement didn't announce any major plans or changes regarding the property market and the challenges facing it, it did provide an update on how the plans announced in the Autumn Statement are being implemented….
The scrap of Stamp Duty for First Time Buyers
To assist first time buyers with taking that initial step onto the property ladder the Government announced in the Autumn Statement that it would abolish stamp duty for those purchasing their first property. This applies to properties worth up to £300,000 across the UK, however in London properties worth £500,000 have the first £300,000 of the cost exempt from Stamp Duty.
The Government confirmed in the Spring Statement that an estimated 60,000 first time buyers have benefitted from the scrap to stamp duty since its inception on 22nd November 2017.
Raising the supply of homes
In the Autumn Statement the Government announced that it would create an investment programme of at least £44 billion over the next five years to raise the supply of homes to 300,000 a year on average by the mid-2020s. They have confirmed in their Spring Statement that they sprung into action and have begun to tackle this with various measures.
- Housing Infrastructure Fund
The Government are currently working with 44 local authorities on their bids into the Housing Infrastructure Fund. The Housing Infrastructure Fund is a government capital grant programme to help to deliver new homes in England. The grant, if awarded, helps ensure that the right infrastructure is in place at the right time so that quality new homes are built across the country. It is a competitive programme and local authorities compete for a grant based on their proposals for the new homes.
- Housing Growth Partnership
The Housing Growth Partnership provides financial support for smaller housebuilders. It is backed by the Lloyds Bank and Homes England, and works to address housing affordability through supporting local communities. Its aim is to increase the number of new homes built in the UK. The Government announced in the Spring Statement that it would be doubling the fund available to the partnership to £220 million.
- Affordable homes in the capital
The Government have announced that London will receive £1.67 billion to start building a further 27,000 affordable homes by the end of 2022.
Will this help the property market?
These plans to tackle the current challenges that are facing the property market are ambitious, but it is important that the country has the number of homes that it needs. It remains to be seen whether these plans will be successful, and if indeed, like any project involving a home, whether they will be finished on schedule!
Whether you're buying, selling, investing, or letting a property our Conveyancing experts are on hand to help guide you through the process. Contact us today on 01603 693500 or email us using 'Make an enquiry' form. Appointments available at our Norwich, North Walsham and Sheringham offices.
*This article is provided for general information purposes only and does not constitute legal advice or other professional advice.