Autumn Statement: Stamp duty holiday terminated; right to buy embraced
By Paul Norman - Tuesday, November 29, 2011 14:16
Chancellor of the Exchequer George Osborne said the government would reinvigorate right-to-buy schemes for council and housing association tenants who want to buy the homes they live in as the focal point of its housing strategy.
In today’s Autumn Statement the chancellor said discounts for buyers in England will be increased with the government promising to replace each home sold.
The aim of the indemnities is to make it easier for lenders to agree mortgages with would-be home buyers who can stump up only a 5% deposit.
Osborne said families in social housing will be able to buy their homes at discounts of up to 50%. There will also be mortgage indemnities to help 100,000 people buy new homes and a £400m fund to help construction firms build houses with planning permission.
However there was disappointment that the temporary tax relief for first-time buyers will end on 24 March 2012, as planned.
The BPF welcomed what it termed moves to kickstart stalled schemes and reinvigorate mortgage finance for families and first time buyers.
Liz Peace, chief executive of the British Property Federation, said: “The housing provisions in the Autumn Statement are a welcome step towards a coherent and long-term vision for house building in this country, and it is good to see the government has moved to kickstart stalled development through the Get Britain Building fund and address mortgages for first time buyers, who are vital for the overall health of the market.
“We would urge the government to press on quickly. The provisions are welcome, but come not a moment too soon with house building at historical lows and the general economy in dire need of support.”
With regards to the termination of the stamp duty holiday Jennet Siebrits, head of residential research, CBRE, said: “It is disappointing that the Government has announced that they will not extend the stamp duty holiday beyond March 2012. While they have deemed it to be ineffective, it provided a small but important incentive to buyers which encouraged movement at the bottom end of the market.”
pnorman@costar.co.uk