Philip Hammond delivered his autumn 2018 budget on Monday. Here is a summary of the headline announcements on housing below.
First Time Buyers
First-time buyers’ relief on stamp duty will be extended, so that all qualifying shared ownership property purchasers (homes worth £500,000 or less) can benefit for the first time. This change will apply to relevant transactions with an effective date on or after 29 October 2018, and will also be backdated to anyone who has purchased a shared ownership property since 22 November 2017
Housing Infrastructure Fund
The Housing Infrastructure Fund is increased by £500m, bringing it to a total of £5.5 billion.
If you are not familiar with the fund it is divided in 2 parts:
- a Marginal Viability Fund to provide the final or missing piece of infrastructure funding to get additional sites allocated or existing sites unblocked quickly
- a Forward Fund for a small number of strategic and high-impact infrastructure projects
£653 million will be provided for strategic partnerships with nine housing associations, deliver over 13,000 homes. The housing associations have not yet been named.
Five-year strategic business plan
A new five-year strategic business plan for Homes England is to be published (30th October) – simply put, it aims to unlock both public and private land in order to build more homes where they are needed. An opportunity for the Build-To-Sell and Build-To-Let developers out there to grab plots of land that would otherwise have been difficult to acquire?
New permitted development rights
There will be a consultation on new permitted development rights to allow upwards extensions above commercial premises and residential properties, including blocks of flats, and to allow commercial buildings to be demolished and replaced with homes. (Note – this was included in the section on the need to modernise high streets to adapt to the modern economy and build more homes in town and city centres.)
Maybe worth reviewing your portfolio to see if you have any properties that could be developed upwards in anticipation of a positive outcome from the consultation – but keep in mind any CIL contributions you may be required to make if your expansions exceed the threshold for your area.
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