George Osborne is to set out the spending plans for the government later today, setting the economic scenery which will hopefully see housebuilding become a priority by 2020.
£7 billion are set to be devoted to making housebuilding a priority. Despite the introduction of schemes like the Help to Buy Equity Loan and the Mortgage Guarantee, housing supply has not increased to the point first time buyers can easily access the market.
These plans bring with them the hope of 400,000 more affordable homes to be built in England, hopefully helping to alleviate the market and make it more profitable and welcoming once again.
Unfortunately, the country’s deficit has not reduced as much as would have been liked, and Osborne is in the situation where he needs to make changes, but has to save as much money as possible.
£5 billion is hoped to be raised from cracking down on tax avoidance, £12 billion is hoped to be saved from annual welfare spending, and governmental departments are to be asked to find £20 billion.
The treasury have said that the announcements will include the “biggest affordable housebuilding programme since the 1970’s.”
£2.3 billion is to be paid to developers so that they can more easily build starter homes, specifically for first time buyers who should be able to get a 20 per cent discount on them. £4 billion is to help build 135,000 Help to Buy Shared Ownership homes, and money is going to go towards specialised homes for people with disabilities, and for “first right” tenant accommodation which will help people save for a deposit and even buy the home that they are renting at the end of a five year tenancy.
The next five years will hopefully see some big turnarounds for the housing market. There are millions of people who are unable to get onto the property ladder. In five years’ time we can only hope that we will have a market which is less hostile and welcomes first time buyers.