Housebuilders Up On Osborne Plans To Build 400000 Homes

Jeremy Blackburn, head of policy at the Royal Institution of Chartered Surveyors (Rics), said: “A push towards affordable home ownership should not come at the expense of affordable homes for rent”. They will be able to borrow double the current £20,000 allowed under the current scheme. “Expanding the starter homes programme to include shared ownership will see more options for struggling first time buyers”. Therefore there will be an increase of 3% in stamp duty for non-main residence purchasers, which would also raise an additional £1bn in tax. Duty of 5% is levied on any value above that, up to £925,000 ($1.4 million). I hear and understand them, ‘ he told MPs to loud cheers.

In the Autumn Statement George Osborne promised 135,000 Help to Buy shared ownership homes by 2021, as part of 400,000 new homes altogether.

However, experts warned that in the short term it could lead to a flurry of purchases and higher prices.

The extra 3% will be charged on top of those rates, and will apply to British buyers of investment or holiday properties, as well as foreign investors, who have been blamed for pushing prices out of reach of many people – particularly in London. In London, where the typical price was £337,734, investors will pay £17,018 to the taxman, compared with £6,686 today.

To Tory cheers, he told the Commons: “I’ve had representations that these changes to tax credits should be phased in”.

Jonathan Adams, director of estate agency Napier Watt, said he expected both investors planning to buy and those wanting a second home to bring the decision forward and do so before April. He said his plan “addresses the fact that more and more homes are being bought as buy-to-lets or second homes”.

“Our shortage of affordable homes means that thousands of working families depend upon housing benefit to help them cope with sky-high rents”. Shares of small banks that provide loans to landlords declined.

The average home in the city now costs £500,000, meaning many Londoners can now only afford to rent.

The Chancellor’s pledge to build 400,000 new homes and support young buyers in London have been welcomed by the property industry but many fear his ambitious targets will be missed. The Chancellor also announced that the scheme would be expanding into London.

Osborne has previously announced plans to build 200,000 starter homes for first-time buyers at a 20 per cent discount. He also noted shares in housebuilders had pulled back from the high seen pre-statement earlier in the day.

But he was forced to admit that he will breach his self-imposed welfare cap in each of the next three years as a result of the tax credit U-turn forced on him by last month’s defeat in the House of Lords.

Under London help-to-buy, a 40% interest-free loan would be available, leaving the individual needing a mortgage of £198,000.