Our clients give their thoughts on Philip Hammonds 2018 Spring Statement, which was announced on Tuesday 13th March.
Martin Bikhit, Managing Director at Kay & Co commented:
“So, we spring into the house buying season with no significant setbacks from the government. This is positive news for both buyers, sellers and the industry as a whole. Economic conditions are showing some improvement, and the sun usually brings the buyers out, so we are ready to greet the season with optimism. Philip Hammond promised no red box, no official document, no spending increases, no tax changes. No other economy makes hundreds of tax changes twice a year, and neither should we, he said. For once, a politician is sticking to his word.”
Camilla Dell, Managing Partner at Black Brick commented:
“We have a more measured and sensible Chancellor who is withholding his big announcements for the Budget this autumn. We see this in a positive light, as the London property market needs stability and to date there has been constant change and uncertainty. The pledge of £1.7 billion investment to build 26,000 affordable houses in London by 2022 is good news, however, pumping money into the market alone will not solve the problem. The Government needs to support Housebuilders and incentivise them to build the right type of accommodation Londoners need, in the right areas, at the correct price. A healthy market isn’t just about supporting the bottom end of the market. The volume of transactions taking place across all price points is also important. Stamp duty changes have crippled the London market, particularly in the prime and super-prime sectors, with volumes falling nearly 40% since stamp duty changes were introduced. At Black Brick we have experienced transactions being choked by stamp duty and we are keen to see a review of the stamp duty hikes bought in by the previous Chancellor, which we believe will have a positive impact on the whole of the London property market.”
David Ullathorne, CEO of Rectory Homes comments on the Spring Statement:
“The latest spring statement sets the tone for the budget this autumn, with housing firmly on the agenda. It is great news to hear the positive effects the recent stamp duty changes have had on first time buyers. At Rectory Homes we are launching a series of new developments over the coming months, which will offer a range of incentives including Help To Buy, to assist first time buyers in getting a foot on the ladder. We are looking forward to learning more about the Governments plans to work with 44 local authorities to deliver more affordable homes across the country.
“With the Government’s announcement to double the Housing Growth Partnership fund to £220 billion, as a medium housebuilder we expect our business to benefit from this financial support.”
Matthew Siddell, CEO of Quorum Property Club commented: “Chancellor Philip Hammond delivered an upbeat Spring Statement today with an emphasis on building an economy for everyone, and new figures reflected this with growth coming in higher than predicted for 2017 at 1.7%. Good news, in the short term, however the challenges Britain faces are likely to be long-lasting.
For housing in London Hammond announced an additional £1.7bn to deliver 26,000 affordable homes including homes for social rent in London by 2022. More good news, however, what is not clear yet are the methods that will be put in place to ensure this is not another housing pledge which is not met.
So while the temperature is due to fall again this weekend, the economic picture has certainly started to brighten, and we should expect a sunnier outlook from now on.”
Angela Walsh, Sales and Marketing Director at Far East Consortium commented: “We welcome the plans to invest £1.67 billion to start building a further 26,000 affordable homes in London by the end of 2022, enabling more people to own their own home. Both the Stamp Duty reform and the fact the Government is working with 44 local authorities with their bids into the £4.1 billion Housing Infrastructure Fund to help build the homes that the country needs is very positive news.”