Following the Autumn Statement, industry experts have had their say on the proposed changes regarding the property industry.
Eddie Goldsmith, Chairman of The Conveyancing Association, said: “We are very pleased that within the detail of today’s Autumn Statement we have the announcement that HM Land Registry will now not be privatised. The CA responded to the consultation on this matter and the vast majority of our members were in favour of the Land Registry remaining in the public sector, so we are clearly very supportive of today’s clarification.
“Interestingly, the Autumn Statement suggests that the Land Registry should become ‘a more digital data-driven registration business’ and that ‘modernisation will maximise the value of [it] to the economy’. This, in effect, is a steer that it should focus on its core role of registration and delivering this through a digital process, which one assumes should include such things as e-signatures. We are fully supportive of moves towards an up-to-date digital conveyancing service – as outlined in our recently published White Paper on modernising the home moving process. If we’re able to see the Land Registry moving swiftly in this direction, then this ambition will be achieved much more quickly.
“We are looking forward to engaging with the Land Registry to help it maintain that focus and to work together on securing a 21st Century conveyancing process.”
Andy Sommerville, Director of Search Acumen, said: “After his first and last Autumn Statement, the property market will be cautiously toasting the Chancellor’s opening bid to tackle the housing crisis with the £2.3 billion Housing Infrastructure Fund and the pledge that £3.15 billion will be sent straight to the Capital to create 90,000 affordable homes.
“However, the reality is that such investment is modest in the context of the groaning gap between supply and demand. The Chancellor said himself that ‘for too many the goal of home ownership remains out of reach’ and we must await the housing white paper for further clarity on how this ambition is to be truly revived.
“On a broader scale, it is encouraging to hear the Government’s attempts to shrink the significant UK productivity gap. Our productivity lags behind the US and Germany by around 30 percentage points and the investment committed to infrastructure and innovation should help bring productivity to the forefront of business planning as we enter the new year. Ultimately, greater productivity will link back to more efficient workflow and subsequently a healthier housing market for consumers. However, we must ensure that all this promised investment is targeted in areas which need it most and is used in the best way possible by businesses.”
Doug Crawford, CEO of My Home Move, said: “Housing was the first policy area mentioned by the Chancellor in his Autumn Statement, showing that housing is finally at the top of the Government’s agenda. The new money for housing infrastructure announced today will help, but we need a holistic approach to housing so we need to see the detail of the Housing White paper.
“New funding for housing infrastructure will only be effective in helping to solve the housing crisis if it leads to the right houses being built in the right places. That’s not just about building housing in areas of high demand, it’s about making sure that it’s the kind of housing people need.
“For example, our own recent research has shown that for many over 55 the idea of downsizing to free up existing housing stock to second steppers is unattractive, as the types of homes they are looking for, such as bungalows, and small detached homes with decent gardens, just do not exist in the volumes needed.”
Mark Hayward, Managing Director, National Association of Estate Agents (NAEA), comments on measures to boost house-building outlined in the Autumn Statement: “The measures announced during the Autumn Statement today to boost house-building go some way to making the housing market work for everyone, but quite frankly do not go far enough. The Housing Instructure Fund, as well as the fund to build 90,000 affordable homes in London will act as catalysts to start closing the gap between supply and growing demand, but what we really need to see now is properties being built quickly. The Government has a long-standing history of announcing numerous house building pledges, but in the last few years, we’ve not seen a sufficient impact on supply to make a dent in providing the affordable homes we really need. The detail in the Housing White Paper will be crucial – let’s hope there are far more detailed plans in there when it is released.”
Nick Davies, Head of Residential Development at Stirling Ackroyd comments on the Chancellor’s Autumn Statement: “Sadly the Autumn Statement was a let-down for first time buyers and for Londoners. It seems Starter Homes have been put on the back burner, and the Government failed to take decisive action on stamp duty, ducking the opportunity to get the market moving. First time buyers already find it almost impossible to save for their deposit without the help of relatives and this Autumn Statement has done nothing to cut the cost. The top of the market is also flat thanks to the Government’s reforms, with landlords also being pushed out of the market by the 3% surcharge.
“The reality of the Government’s decision to ban letting fees is that it will only result in landlords passing the bill on to tenants through higher rents. Landlords have already been stung by the stamp duty surcharge and the end of mortgage tax relief, and so it is difficult to see them doing anything other than push the burden back on to Generation Rent. Hitting landlords with extra costs only leads to fewer properties available to rent in the longer term, meaning even greater competition and higher rents. The only solution to the housing shortage is to build more homes and free up public sector land for housebuilding.
“While the Housing Infrastructure Fund should benefit London, there was no news on specific projects for London like Crossrail 2, the Bakerloo line extension, or river crossings in the east of the capital, which would open up new parts of the city for housebuilding and development. At the current rate it will take years for these mega-projects to be delivered – while in the meantime the prospect of homeownership in London will only become even more unachievable for the vast majority.”
Paul Grant, Associate Solicitor in the Real Estate team at Coffin Mew, said: “The Chancellor made a number of announcements that are intended to kick start further house building and deal with issues in the Planning system. We await further details of how the Government intends to deal with more fundamental housing and planning issues to be outlined in a White Paper which was disappointingly not published today, but is expected soon.
“One of the key headlines was an announcement of £2.3 billion, forming part of the new £23 billion National Productivity Investment Fund, towards infrastructure needs in order to unlock 100,000 new homes in areas of high demand.
“Another headline announcement was for £1.4 billion, forming part of the same fund, to go towards providing 40,000 additional affordable homes by 2020/2021. When one considers that the Government’s intention is to build 1m new homes over the course of this Parliament, helping to provide 40,000 new affordable homes appears as a drop in the ocean.
“It is clear that the Government is still relying on the private sector to drag Britain out of its housebuilding malaise, but in the last week government figures have been published showing affordable housing delivery has hit its lowest level since 2001, so it is questionable whether today’s proposals go far enough.”
Tina George, Head of Real Estate at leading law firm DMH Stallard, said: “The ban on tenants having to meet the fees of renting property will be a blow for millions of landlords, and whilst more detail is awaited, this is likely to further impact on the profitability of buy to let investments in the future.”
She added: “While £3.7 billion is being earmarked to boost housing delivery, 140,000 new homes only reflects approximately half of the Government’s annual housing target and the industry will be eager to see further proposals to boost delivery within the forthcoming White Paper.”
Richard Connolly, CEO of Rentplus comments on the Chancellor’s Autumn Statement: “We agree with the Chancellor’s comments about the effect of unaffordable housing on productivity and delivery of much needed housing and his acknowledgement that “for too many, the goal of home ownership remains out of reach.” His announcement of a range of new measures to address these issues is most welcome and marks a step-change in housing policy. The introduction of the new Housing Infrastructure Fund and the NIPF will undoubtedly be a significant and positive spur to accelerate the delivery of new affordable homes, unlocking innovation in the housing sector and delivering new affordable housing in high demand areas. In London, the increase in funding for the GLA to deliver 90,000 new affordable home starts by 2020 will be essential in ensuring it’s still possible for those on lower incomes to continue to live in the Capital. We hope that rent to buy homes will be included in this pipeline.
“We are delighted that the Government recognises the importance of creating mixed tenure developments providing more homes of every type and addressing the affordability gap. It’s good to see that the Government has taken a wider view of affordability – the support the Chancellor has provided through the changes to Universal Credit should make it easier for families to stay in work and progress up the career ladder, afford child care costs and save for a deposit to buy their own home. The extension of the Help to Buy ISA is good to see as this will encourage the nation to get in the saving habit and enable…tenants to save to top up the deposit we give them when they buy their home.
“With average house prices more than 9 times median incomes in 39% of local authorities, we need to do something different to enable those who can reach their goal of home ownership. While the additional 40,000 new affordable homes announced will help, they won’t be enough to counter this trend. We are looking forward to the Government’s Housing White Paper and the details of how these new initiatives will be delivered; we also hope that Rent to Buy models will be recognised as a mainstream housing product both as a Starter Home and truly affordable housing alongside traditional options. This would enable local authorities to boost their supply of affordable homes to rent whilst providing a complementary housing solution for those who aspire to own their own home, without an increase in government spending.”
