Chancellor George Osborne has announced a £7 billion programme designed to prioritise the construction of homes and provide over 400,000 affordable properties. The announcement came as part of the Autumn financial statement and has been referred to as the biggest affordable housing programme since the 1970s.
£2.3 billion will be paid directly to developers to build 200,000 starter homes for first time buyers who will receive a discount on prices up to £450,000 in London and £250,000 throughout the rest of the UK. Additionally, the Chancellor announced that £200 million will be allocated to build 10,000 new homes to house tenants for a five year period. This will enable them to save enough money for a deposit and they will have the first right to buy the property.
A figure of £400 million is to be assigned to aid the construction of 8,000 purpose built properties for the disabled and the elderly. The Government’s plans to build millions of homes across the UK over the next five years have been discussed for a while now and the recent announcement is welcome news for the property market, particularly the rental sector.
There has been great need to expand housing construction in not just London, but the rest of the country and this new support for the private rented sector and social housing will play a crucial role in protecting the financial stability of millions of households. The planned financial assistance for affordable housing will directly support the rental market which is one of the fastest growing tenures in the country.
Significant investment in social housing will offer security to vulnerable households and reduce the need for temporary accommodation. The rental market needs well structured and long term planning rather than short lived interventions, so the support from the Government spells great news for landlords and investors.
We provide comprehensive property and estate management in Tower Hamlets and the rest of the country, and we are the preferred letting agents for investors and developers across the capital city and beyond. Whatever changes this announcement brings to London’s property market, you can rest assured we will be on hand to help landlords and investors to navigate them.