Budget 2014: What it Means For Housing

Monday, 31 March 2014

George Osborne has been posing with his little red briefcase once again, so it can only mean one thing: it’s time for the spring budget. This year there was a big focus on housing, with the Chancellor outlining some exciting plans for new developments, as well as a few announcements around stamp duty and the ‘Help to Buy’ scheme.

The government hasn’t made any secret of the fact that they want to ‘get Britain building again,’ with David Cameron vowing to increase construction as far back as 2011. The current budget definitely reflects this, with Osborne adding that this year’s 23% increase in building projects “isn’t enough”.

He then unveiled plans for new housing projects in the south east. Money has been set aside for new homes to be built in Barking Riverside, Brent Cross is set to undergo a regeneration project, while those hoping to move to Ebbsfleet will soon be looking for home insurance, as the town becomes the site of a new Garden City: the first one to be built in Britain for nearly 100 years.

It’s not all about big building projects, either. Small building firms, which were responsible for nearly half of the new housing output before the crash, will receive government support to the tune of £500 million. The new ‘right to build’ scheme was also announced, with the government setting aside £150 million to help people who want to build their own properties.

First time buyers also received a boost, with the Help to Buy equity loan scheme being extended until 2020. However, corporations received a bit of a blow, with Osborne adding a 15% stamp duty to residential properties valued at over £500,000 if they’re bought through a business. Osborne added that this doesn’t apply to properties that are being rented out, but the measure aims to stop people “abusing” the system.

Sources:
1.
www.bbc.co.uk/news/uk-politics-15810966  
2.
www.ftadviser.com/2014/03/19/mortgages/mortgage-products/budget-we-are-getting-britain-building-GGPt3pj76qbXlZtpbXtGaL/article.html  

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