Will the Budget’s new measures help new home buyers?
Though there was a distinctly mixed response to some of the property schemes – especially the new Help to Buy – in the Chancellor’s Budget, one group was almost universally enthusiastic, the new home builders. Indeed, George Osborne’s announcement saw shares rise sharply as the markets predicted a sales boost, Barratt’s price up 7%, Taylor Wimpey 6%, and Persimmon, Bellway and Redrow up 4%.
As well as reaffirming the government’s commitment to building zero carbon homes from 2016, othere new build measures included an additional £800m for the Build to Rent scheme, and a doubling of the £225m Affordable Homes Guarantee Programme run by the Homes & Communities Agency (HCA) which will see the Agency deliver up to 30,000 new affordable homes.
“This is a major boost for homebuyers and house builders,” said Mark Clare, chief executive at Barratt Developments. “It is an important step towards addressing these issues and meeting the housing needs of the nation. It will also be a major boost to the economy as every additional home we build creates two new jobs.”
Steve Roche, communications director at Persimmon Homes whose roster includes new homes in Oxford and new homes in Bristol , said:
“Since Christmas, we have already seen the market begin to improve with initiatives including FirstBuy and NewBuy. From the information released to date, we are very pleased that the Government recognises the importance that the new homes industry plays in the much needed growth of the UK economy. We believe that these two initiatives complement the schemes currently available and will help create much needed movement within all levels of the housing market.”
Elsewhere, Banner Homes has already report a good start to the year with nine sites granted planning permission in the past few months including plans for new homes in Beaconsfield, Radlett, Theydon Bois, Kingston in Surrey, Malvern, and Poole.
“The budget has been one to help boost home ownership and enable first time buyers to return to the housing market,” said Richard Werth, chief executive of Banner Homes. “These very beneficial measures should help ensure that a generation of would be homeowners isn’t denied the opportunity to own their home which should help fix the “broken ladder”. This, with other personal allowance benefits, will make home ownership affordable and should therefore encourage more house building and employment opportunities.”football, real estate
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