Budget 2023 reaction: Housing sector ‘largely ignored’ by chancellor
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Loading... - Jeremy MOORE
- 16 Mar 2023
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Given that the Budget yesterday was designed to boost economic growth, it was somewhat surprising that housing was completely overlooked. Not even given a mention by the chancellor Jeremy Hunt.
With no fresh support for first-time buyers, a failure to provide solutions to the widening supply-demand imbalance in the market, and nothing to incentivise buy-to-let landlords to continue investing in the PRS, the property industry reacted rather negatively to the Budget statement.
Industry reactions:
Nick Sanderson, CEO at Audley Group: “Another opportunity for housing reform has sailed on by. An innovative Chancellor would have used his time at the dispatch box to set out reforms that place as much emphasis on later living as first-time buyers. It was unrealistic to expect a stamp duty holiday in the current economic climate, but Jeremy Hunt, chancellor, should have considered stamp duty reform. In its current guise it’s a brake to the whole market, which in the long term costs the Treasury more.
“If there is no fluidity, people stay in family homes that are too big and unsuitable for them. Unsuitable housing leads in turn to more pressure on a stretched NHS compared to a pre-emptive move to a property that can adapt as people age. And yet more housing is needed for first time buyers at a time when there is already a serious deficit.
“In contrast there is a desperate need to increase the provision of age specific housing in the UK, but the sector has been largely ignored by successive chancellors. There is little time to waste. The groundwork must start now, if we are to see any benefit in the next few years.”
Nick Leeming, Chairman of Jackson-Stops: “While high energy costs were front and centre in the Chancellor’s statement, today’s announcements missed an opportunity to tackle the climate conundrum in the long term for the UK’s housing stock. Homeowners want to play their part and make their homes more energy efficient but the cost of doing so and lack of clarity on what needs to be done is holding them back.
“Funding and support to help homeowners retrofit and install low carbon heating currently does not go far enough, feeling convoluted and vastly inaccessible for many. The government’s target of reducing domestic energy usage by 15% by 2030 is ambitious and won’t be possible without a joined up effort from government and the property industry alike. Introducing zero-rate VAT for building repairs on period property to encourage essential maintenance would be well received, going beyond just energy efficient materials as we know such upgrades cannot be done in isolation. Longer-term measures to ensure that our historic homes are protected, means making them fit for the future now. Read More…
