Jeremy's Autumn Statement 2023: as it happened
The Autumn Statement includes significant measures for infrastructure, housing, and planning in the UK:
Planning System Reform:
Local authorities can recover full costs of major business planning applications for meeting faster guaranteed timelines. Fees will be refunded if timelines are not met.
Housing Development:
Investment of £110 million to unlock 40,000 homes through nutrient mitigation schemes, £32 million to address planning backlogs and develop new housing quarters, and £450 million to the Local Authority Housing Fund for 2,400 new homes. There's also a proposal for a new Permitted Development Right to convert houses into flats.
Energy Infrastructure:
Measures to reduce grid access delays for clean energy businesses by 90%, and offering up to £10,000 off electricity bills for residents near new transmission infrastructure. These reforms are estimated to stimulate around £90 billion of additional business investment over the next 10 years.
Other Key Points:
- Inflation Reduction: The government announced it has successfully halved inflation, which is a significant economic indicator affecting the property market.
- Investment in Housing Supply: The government plans to unlock tens of thousands of new homes by investing in the planning system. However, challenges like falling demand and higher mortgage rates have led to a decrease in the number of projects granted planning permission.
- Regulatory Changes: The government is addressing tougher water pollution rules, which have been problematic for developers. This is expected to potentially unlock 40,000 homes over the next five years.
- Home Builders Federation's Plan: A ten-point plan called "Firmer Foundations" was published, aimed at increasing housing supply through a percentage uplift method for growing housing stock within local authorities.
- Mortgage Guarantee Scheme Extension: The Chancellor extended the mortgage guarantee scheme and earmarked £3 million to digitize the home buying process, though these measures are not seen as transformational for the housing market.
- Proposal for Housing Conversion: There's a proposal to simplify the process of converting a house into two flats under the planning system, which could benefit landlords.
- House Price and Transaction Forecasts: The Office for Budget Responsibility predicts a modest rise in house prices this year, followed by a decrease next year. Additionally, housing transactions are expected to fall significantly this fiscal year.
These points from Jeremy Hunt's Autumn Statement give an overview of the government's current stance and predictions for the UK property market, highlighting efforts to boost housing supply and address regulatory challenges, along with forecasts on house prices and transaction volumes.
However, the statement appears to lack direct measures specifically targeting the UK property market, such as support for first-time buyers or changes to stamp duty. These omissions were noted as disappointments by parts of the housing industry.
