We have all been eagerly awaiting the new Chancellor, Phillip Hammond’s announcement for the Autumn statement to see how this will affect housing delivery in the UK.
Housing is once again top of the agenda for the government with some new additions in terms of funding and policy changes which have received mixed reviews from within the industry.
Here is a quick summary of the key points we can take away from
New funding opportunities
1. £2.3bn Housing Infrastructure Fund
- Allocated to local authorities based on housing need in the local area
- To provide 100,000 new homes
2. £1.4bn grant for affordable homes
- To provide 40,000 affordable homes
- No longer restricted on type of home to be built
- Available to housing associations, developers and councils
3. £1.7bn funding for new homes
- To help speed up housebuilding on public sector lan
4. £3.15bn investment for London
- To build 90,000 affordable homes in London
Changes in policy
1. Right to Buy
- Instead of full roll out now large scale regional pilot
- Over 3,000 tenants will be eligible to buy under the new pilot
2. Pay to Stay
- Now cancelled for local authorities
- Would have applied to social housing tenants in England earning more than £31,000 or £40,000 in London and increased rents by around £1,000 per year
3. LHA cap
- Now delayed until 2019
- But the Local Housing Allowance (LHA) cap will apply to all social housing tenants receiving Universal Credit not just new tenants
- However for those still receiving traditional housing benefit the cap will only apply to new or re-let tenants that enter their tenancy after April 2016.
4. Letting agent fees
- New ban on letting agent fees to tenants
The government also announced a new £3bn Home Building Fund back in October which aims to help small and large builders building residential developments. As well as an £18m capacity fund which will help to tackle planning issues that cause delays to construction.
For more information on the funding opportunities and policy changes above please refer to full Autumn Statement document.
By Anna Symington