Several announcements in the Autumn Statement will impact the property sector, falling broadly into two themes. Firstly, more support around affordability and secondly unlocking planning to speed up the delivery of homes in the longer term. Below we outline some of the key announcements and look at what they may mean for you.
National Insurance Cuts Plus Unfreezing of The Local Housing Allowance
Capturing the greatest number of headlines after the Autumn Statement was the announcement of 2% employee National Insurance cuts which should help with affordability issues for many, as well as increases in benefits and the National Living Wage which will increase 9.8% and benefit more than 2.7 million low-paid workers. There were also NI adjustments to help the self-employed.
For tenants struggling to cope with increasing rent costs there was welcome news from Chancellor Jeremy Hunt that he would raise the Local Housing Allowance rate to the 30th centile of local market rents in April 2024. This has long been called for by the market as the rate had been frozen since 2020 and was based on what are now outdated rents. Hunt said this would help deliver an additional £800 of support for each of 1.6 million households across the UK.
Unlocking New Homes By Tackling Backlogs In Planning
Funding to tackle planning backlogs in Local Planning Authorities (LPAs) was also announced. This aims to speed up the delivery of projects that have stalled because of red tape and was accompanied by the announcement of a consultation in the early new year to allow a new Permitted Development Right. This will allow one house to be converted into two flats, provided there is no change to the external façade, a move that is likely to be particularly welcomed by landlords, as well as sellers.
In addition, a £110 million investment in the Local Nutrient Mitigation Fund, will allow LPAs impacted by nutrient neutrality rules to deliver offsetting schemes and so deliver developments more quickly which should unlock up to 40,000 homes over the next five years, according to estimates from the Department of Levelling Up, Housing and Communities.
Extension of the Mortgage Guarantee Scheme
The extension of the scheme that supports buyers putting down a 5% deposit to get on the housing ladder has been welcomed. It was originally extended last year to the end of 2023 but will now run until June 2025, giving extra support to would-be homeowners.
An Extra £3 Billion for the Affordable Homes Guarantee Scheme
The existing £3 billion scheme is being supported by a further £3 billion to support housing associations to access cheaper loans for quality and energy efficiency works, as well as new homes.
Investment In Market Digitisation
The government is also providing £3 million for investment in a range of measures that it hopes will improve home buying and selling, benefiting both buyers and sellers by speeding up the process. These include pilots to develop property tech products and to digitise local council property data.
Proctors is an independent network of individual estate agent businesses with branches in Beckenham, Bromley, Park Langley, Petts Wood, Shirley and West Wickham. We’ve been buying, selling and letting in these areas since 1946. Get in touch to find out how we can help you.