{"id":4023337,"date":"2019-03-15T09:26:31","date_gmt":"2019-03-15T09:26:31","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=4023337"},"modified":"2019-03-15T09:26:31","modified_gmt":"2019-03-15T09:26:31","slug":"what-does-the-spring-statement-mean-for-the-housing-market","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-au\/news\/what-does-the-spring-statement-mean-for-the-housing-market\/","title":{"rendered":"What does the Spring Statement mean for the housing market?"},"content":{"rendered":"
The<\/span>\u00a0annual<\/span>\u00a0speech offers a mini-budget, setting out the financial plans for the year<\/span>, and it included some key points involving the\u00a0<\/span>property market<\/span><\/a>.\u00a0<\/span>Mr\u00a0<\/span>Hammond promised funding for\u00a0<\/span>new\u00a0<\/span>homes<\/span><\/a>, especially in key areas, support for affordable\u00a0<\/span>housing<\/span>\u00a0and small builders, and plans to introduce\u00a0<\/span>new\u00a0<\/span>planning\u00a0<\/span>guidelines<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n <\/p>\n The government is continuing\u00a0<\/span>to\u00a0<\/span>work<\/span>\u00a0<\/span>towards<\/span>\u00a0its\u00a0<\/span>target<\/span>\u00a0of having\u00a0<\/span>300,000 new homes<\/span><\/a>\u00a0built every year in the UK<\/span>\u00a0by the mid-2020s<\/span>, and Mr Hammond proclaimed the government is on track to reach this goal<\/span>.\u00a0<\/span>The\u00a0<\/span>Chancellor<\/span>\u00a0stated:\u00a0<\/span>\u201c<\/span>Building more homes<\/span><\/a>\u00a0in the right places is critical to unlocking productivity growth and makes housing more affordable.\u201d<\/span>\u00a0<\/span><\/p>\n In England,<\/span>\u00a0the<\/span>\u00a0government is guaranteeing up to \u00a33bn of borrowing\u00a0<\/span>for<\/span>\u00a0housing associations to help the delivery of approximately 30,000\u00a0<\/span>affordable homes<\/span><\/a>.<\/span>\u00a0<\/span>By having lowered borrowing costs,<\/span>\u00a0<\/span>affordable housing<\/span><\/a>\u00a0providers<\/span>\u00a0are likely to boost their output.<\/span>\u00a0<\/span><\/p>\n Mr Hammond<\/span>\u00a0also<\/span>\u00a0revealed schemes to boost\u00a0<\/span>housebuilding<\/span><\/a>.\u00a0<\/span>F<\/span>rom\u00a0<\/span>the \u00a35.5<\/span>bn\u00a0<\/span>Housing Infrastructure Fund<\/span>,\u00a0<\/span>\u00a3717m<\/span>\u00a0<\/span>will be put towards<\/span>\u00a0unlock<\/span>ing<\/span>\u00a0up to 37,000\u00a0<\/span>new-builds<\/span>\u00a0at\u00a0<\/span>sites\u00a0<\/span>including<\/span>\u00a0<\/span>Old Oak Common in London, the Oxford-Cambridge Arc, and Cheshire.<\/span>\u00a0Money from this fund is given as grants to\u00a0<\/span>local authorities<\/span><\/a>\u00a0and is then<\/span>\u00a0used to provide needed infrastructure to help developers get planning permission<\/span>.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n An additional\u00a0<\/span>\u00a3<\/span>445m<\/span>\u00a0is going to be used to unlock more than 22,000 homes in the\u00a0<\/span>Oxford-Cambridge Arc<\/span><\/a>. In recent years, new homes have been unable to keep pace with the creation of jobs. Building more properties is\u00a0<\/span>expected<\/span>\u00a0to ease the pressures from the growing demand.<\/span>\u00a0<\/span><\/p>\n The Chancellor<\/span>\u00a0announced plans to introduce new<\/span>\u00a0planning<\/span>\u00a0guidelines to support housing diversification, especially on larger development sites.<\/span>\u00a0<\/span>A green paper will be published to detail proposed improvements that will focus on accelerating the\u00a0<\/span>planning process<\/span><\/a>.<\/span>\u00a0<\/span><\/p>\n The<\/span>\u00a0<\/span>Spring Statement<\/span>\u00a0<\/span>also\u00a0<\/span>included\u00a0<\/span>a package of\u00a0<\/span>reforms allowing\u00a0<\/span>a greater change<\/span>\u00a0of use between premises<\/span>, in addition to a new permitted development right for\u00a0<\/span>extending existing buildings upwards for new homes<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n The scheme supporting smaller housebuilders that was first announced in the\u00a0<\/span>2018 Autumn Budget<\/span><\/a>\u00a0is going to be launched next month. Through th<\/span>e British Business Bank<\/span>, the government will provide \u00a31bn of guarantees to support<\/span>\u00a0lending to both small and medium-sized builders. By lowering the funding costs for these builders, the\u00a0<\/span>housing supply<\/span><\/a>\u00a0is expected to be boosted by enabling smaller scale sites to be developed.<\/span>\u00a0<\/span><\/p>\nBoost<\/span><\/b>s<\/span><\/b>\u00a0to<\/span><\/b>\u00a0the housing supply<\/span><\/b>\u00a0<\/span><\/h3>\n
New p<\/span><\/b>lanning\u00a0<\/span><\/b>guidelines<\/span><\/b>\u00a0<\/span><\/b>and<\/span><\/b>\u00a0reform<\/span><\/b>\u00a0<\/span><\/h3>\n
Support for small builders<\/span><\/b>\u00a0<\/span><\/h3>\n