‘We are the builders,’ George Osborne proudly claims, reusing the slogan that debuted in his party conference speech.
Osborne’s plans for a housing budget are to double the budget to £2bn per year. This will fund 400,000 new affordable homes by the end of 2020, benefitting around 100,000 families. These homes will be to buy and to rent in order to make them more accessible to everyone. Steve Povall, Managing Director at Residential Estates said, “This is the largest house building programme since the 1970s.” It is aimed at families earning less than £80,000 per year and allows people to part purchase a house and move in, whilst buying more of the property over time.
He is also introducing a new Help to Buy scheme with regards to shared ownership in order to relax the rules therefore allowing more people to take advantage of the scheme. David Gascoyne, Sales and Lettings Manager at Residential Estates said, “this will allow more people to finally get themselves on the property ladder, especially if they are a couple or are buying a property with friends.”
Additionally, Osborne has increased stamp duty rates on homes which are bought on a buy-to-let basis. These homes will have 3% higher rates than normal stamp duty, a move that has made many people question the new worth of the buy-to-let sector. Osborne claims that the revenue created from this rise will be reinvested back into local communities.