With the aftermath of the 2016 budget a distant memory, property developer Richard Carr examines the changes to property in the UK and if it will help solve the countries housing crisis.
Overall there wasn’t a big housing announcement as to how the government plans on solving the crippling issue of supply or the increasing house prices that are preventing many young people in the country own a home.
ISAs have been a popular tool in the government’s effort to show that its commitment to helping young people get on the property ladder. At this year’s budget it announce a ‘Lifetime ISA’ which would provide people under the age of 40 with 25% on top of any funds in the account (up to £1,000 per year).
Looking at the bonus against the rate of house price increases takes the shine off the ISA slightly. A saver could have achieved a maximum bonus of £5,000 by 2021 from the government however house prices are expected to raise by 25% by 2021, meaning that the average house would go up by £50,000.
The Chancellor promised a raft of planning reforms in his recent summer budget, but didn’t reveal implicitly what would be introduced or changed. Exactly what the reforms will include are set to be revealed on Friday 10 July.
Further devolution was also promised by the Chancellor has he insisted that the administration remained committed to the development of a ‘Northern Powerhouse’. He committed £30m to establish ‘Transport for the North’ as a statutory body with statutory responsibilities.