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.
Commercial and Residential Development Specialist Richard Carr expects the government to allow councils to set their own planning fees in this year’s Autumn Statement following increased pressure from the Local Government Association (LGA).
Richard Carr says the government needs to do more to help building firms
Richard Carr is of the opinion that passing control of planning fees to councils instead of having nationally-set planning fees will benefit developers.
He believes developers will benefit from relationships with local planning officers and knowledge of the area to reach fairer and more accurate fees.
The LGA has urged Chancellor George Osborne to remove the cap introduced by the government in 2012 when he informs the country of his spending review in the Autumn Statement later this month.
Many expect to see the cap removed with speculation mounting that the Treasury, keen to see house building accelerate in the UK, is sympathetic towards developers.
According to the paper, UK developers have failed the recent planning reforms announced in George Osborne’s emergency budget, which are designed to boost Britain’s housebuilding from near-historic lows.
Some of the main proposals centred around brownfield sites and the relaxation of planning. Small house building firms are being incentivised to build on brownfield sites as they no longer have to spend time and money obtaining planning permission.
Furthermore, a new zoning system is to be introduced on brownfield sites where developers will get automatic planning permission.
There’s now over half a million Brits thankful that Labour’s Mansion Tax policy never saw the light of day, writes Richard Carr.
Residents of Kensington Palace will be grateful the Mansion Tax policy never become a reality
It’s now a distant memory, but in the lead up to this year’s general election Mansion Tax was one of the most widely talked about policies. Labour proposed to heavily tax properties worth over £2m to help fund the NHS.
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.
Of those 100,000 buyers, the latest data shows that some 80% of scheme completions were made by first time buyers.
That percentage is expected to rise after autumn 2015 following the introduction of the Conservatives’ Help to Buy ISA, which will provide savers with a monthly bonus.
The average house price of homes via the scheme was below the national average at £184,000, whilst over half of transactions have been for new build homes. This is a good sign for developers and construction firms moving forward and for the country’s economy, which relies heavily on a growing and prosperous construction sector.