The latter will, of course, help house builders by increasing demand for newly-built homes aimed at first-time buyers while a £400m ‘Get Britain Building’ fund has been promised to aid construction projects stalled by finance problems after gaining planning permission.
In addition, the government says it wants to remove “lengthy delays” which plague the current planning system and bring back ‘Right to Buy’ for social housing tenants.
The West Midlands property sector has been giving its reaction.
Senior director at GVA in Birmingham Stephen Hollowood said: “These plans are a good start to support the housing industry but I fear they are not radical enough, given the current lack of housing delivery. A healthy new homes market could add significantly to GDP and we are a very long way off from seeing this happen.
“The Chancellor could have incentivised homeowners to carry out renovation and improvement projects by removing VAT on labour and materials.”
Peter Owen, right, Midlands managing director with construction firm Willmott Dixon, said there were many sites across the Midlands which would qualify for the £400m fund.
“However, development finance is not always the issue: much of it is to do with confidence, and a developer’s capacity to take on risk,” he said.
“The introduction of a new build indemnity scheme….will undoubtedly provide house builders with a cushion.
“Returns from the (Right to Buy) scheme will be channelled into new affordable homes, with the Government planning to deliver an additional 170,000. This is welcome news for the construction industry.”
Chris White, head of regen director at CBRE in Birmingham, said: “Changes to the planning system have been trailed for a long time, so there weren’t any surprises in the Statement. Britain’s planning regime is mired by delays and uncertainty.
“Although this has been acknowledged, initiatives such as the Localism Bill have only added to the confusion.”
DTZ director Jonathan Crawford said: “The Chancellor’s announcement that stamp duty land tax relief for first time buyers will end as planned in March, illustrates that it is the availability of finance and confidence which drives the residential market.
“The mortgage indemnity scheme will increase the opportunity for home ownership at the all important first rung of the ladder, which should have an upward ripple.”
Jon Neale, head of Residential Research at Jones Lang LaSalle, said: “Over the past few years, there have been around 200,000 first-time buyers per annum, compared to an average of over 450,000 before the financial crisis.
“While this initiative is substantial and innovative – it has not been tried before in the UK – it cannot in itself restore first-time buyer numbers to more typical levels. Regardless of mortgage concerns, affordability and the undersupply of new homes remain the major barriers.”
Simon Rubinsohn, chief economist with the Royal Institution of Chartered Surveyors, said: “The recognition that the construction industry is a key driver of this much needed growth is a good start but will only deliver in the medium term. More immediate measures are needed to kick start the economy now.”
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Peter Owen, right, Midlands managing director with construction firm Willmott Dixon, said there were many sites across the Midlands which would qualify for the £400m fund.
DTZ director Jonathan Crawford said: “The Chancellor’s announcement that stamp duty land tax relief for first time buyers will end as planned in March, illustrates that it is the availability of finance and confidence which drives the residential market.
