17 Nov NAPB: “Nothing announced today will help first time buyers get a foot on the ladder.”
Commenting on today’s Autumn statement, Jonathan Rolande, spokesman for the National Association of Property Buyers, said today:
“There was a disappointing lack of focus on the housing market in the statement today. By blanking the housing crisis the Government has, once again, looked away from what is fast becoming one of the biggest socio-economic crises of our times.
“For many, the prospect of owning a home is a pipe dream, and it feels as realistic today as winning the Lottery. Nothing announced today will help first time buyers get a foot on the ladder. And I doubt it will encourage older property owners into downsizing which would help many looking to move.
“Mr Sunak, just 12 months ago, vowed to turn Generation Rent into Generation Buy. Yes, there have been changes in circumstances since then, but we seem further away now than ever from making this a reality.
“It’s short-sighted that neither Mr Hunt nor Mr Sunak realise that solving our housing crisis isn’t just the way to stimulate growth and prosperity. It could also help ensure they keep hold of the keys to Downing Street.”
On the measures announced Mr Rolande added: “Jeremy Hunt hasn’t delivered any early Christmas presents for home-owners, or for those working in the property sector. The fact that energy bills are predicted to rise will be of particular concern to many. So to will be the fact the Government is yet to offer reassurances as to what support they will offer in the longer term in this area to bill-payers.
“A lot of focus will be on the decision to “sunset” Stamp Duty. This was portrayed as being an assistance to the property market and the people employed within it. But it is a potential blow, albeit one that will impact the sector further down the line.
“The market has so much to get through by then, that the effect of the loss could be insignificant. The decision to cut Capital Gains allowances is a good move, and taxing unearned income is the least painful way to generate money for the treasury.
“The decision to reduce the amount Housing Associations will be able to increase rent by will be popular, and it may lead to pressure on the private sector to follow suit with rent control, although I suspect this would be some time away. One chink of light is that if the money markets respond well, we could see some of the pain of tax rises offset by cheaper mortgages as the pressure on longer terms loans eases.
“Mr Hunt hasn’t rolled out any punitive measures that could worsen future prospects. And most importantly we haven’t seen a set of measures which risk causing the chaos of the botched mini Budget which caused so much damage to the property sector. This is damage we are still reeling from.”
