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The South West Specialists

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New Housing Policy for Local Authorities and Developers to come to terms with !

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In his Autumn Statement Spending Review, Chancellor George Osborne announced a series of new measures aimed at backing families who aspire to buy their own home and increasing the supply of housing.

So what is the plan? 

Firstly, he stated his intentions to double the housing budget to over 2billion a year, with the ambition of delivering 400,000 new affordable homes by the end of the decade. The emphasis of recent months was reiterated as the Chancellor reinforced the position of being the Government who “choose to build the homes that people can buy”, with half of the delivery target being designated as ‘Starter Homes’ available at 20% off Market Value. The remaining target being made up off the Government’s ‘Help to Buy’ (Shared Ownership) scheme and ‘Right to Buy’ for housing association tenants. 

In addition on the supply side, the Government have announced that there are to be more reforms to the planning system, with the release of public land which would be suitable for 160,000 new homes. Re-designating under used commercial land and extending loans for small builders also features of the speech. 

Finally it was announced that as of April 2016 there will be an additional 3% stamp duty rise on buy-to-lets and second homes, with reinvestment of the proceeds in local communities.  He specifically commented on “places like Cornwall, which are being priced out of home ownership”. 

Greg Oldrieve, Head of Development Services at Vickery Holman, says “The statement presented partly new ideas and was partly the re-emphasis of old ideas, but there was a lot for the planning system and market to digest.  It presents opportunities, but the digestion will cause some hesitation in the market. Longer term however the Governments continued support for house building will enforce confidence.”