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The chancellor presented his Budget to Parliament on Wednesday 22 November. Below is a summary of what has been announced in relation to housing.
The Budget has announced new policy which aims to raise housing supply by the end of this parliament to its highest level since 1970, on track to reach 300,000 per year, through:
- Making available £15.3 billion of new financial support for housing over the next five years, bringing the total support for housing to at least £44 billion. This includes £1.2 billion for the government to buy land to build more homes, and £2.7 billion for infrastructure that will support housing.
- Introducing planning reforms that will ensure more land is available for housing, and that better use is made of underused land in our cities and towns. This means more homes can be built while protecting the green belt.
- Providing £204 million of funding for innovation and skills in the construction sector, including to train a workforce to build new homes.
- Lifting Housing Revenue Account borrowing caps for councils in areas of high affordability pressure, so they can build more council homes.
It has also been announced that local authorities will be now be able to charge a 100% premium on council tax on empty properties, and there will be compulsory purchase of land banked by developers for financial reasons. This is to dissuade property investors from allowing homes to sit empty while may struggle to find somewhere to live.
Moreover, the government will permanently raise the price at which a property becomes liable for Stamp Duty Land Tax to £300,000 for first-time buyers. However, the relief will not apply for purchases of properties worth over £500,000.