Property Experts Comment on Autumn Statement

Chancellor Jeremy Hunt presented over 100 measures in his full Autumn Statement, but only a few specifically targeted the housing sector. PropertyIndustryEye canvassed the opinions of several property experts.

Enhancements to Local Housing Allowance

The Local Housing Allowance rate, which assists private renters on low incomes in paying their rent, is set to increase to the 30th percentile of local market rents. This change, effective from 2024, will provide an average of £800 in support to 1.6 million households next year. It’s a significant move, considering the allowance had been frozen since 2020 despite rising rents.

New Permitted Development Right

A new permitted development right is being introduced to enable the conversion of a single house into two flats. This measure, planned for implementation in 2024, aims to streamline the planning system and potentially increase housing availability.

Extension of the Mortgage Guarantee Scheme

The Mortgage Guarantee Scheme, initially set to close in December 2023, has been extended to June 2025. This scheme provides lenders with financial guarantees to offer mortgages covering up to 95% of a house’s value, up to £600,000, making it easier for buyers to secure mortgages with smaller deposits.

Additional Announcements

Several other initiatives were announced, including:

Premium Planning Services: These services aim to speed up decision-making on major applications, with refunds for unmet deadlines.
Local Nutrient Mitigation Fund: An investment of £110 million will support local authorities in creating nutrient offsetting schemes, potentially unlocking 40,000 homes over five years.
Investment in Housing and Planning: An additional £32 million will be allocated to aid in unlocking thousands of homes across the country.
Expansion of the Affordable Homes Guarantee Scheme: An additional £3 billion will be invested to support the creation of 20,000 new homes and improve thousands more.
Funding for Homebuying and Selling Process Improvements: An investment of £3 million is earmarked for enhancing these processes.

Industry Reactions

Various industry experts have shared their reactions:

Tim Bannister (Rightmove): Expressed disappointment at the lack of housing-focused measures, noting the challenges faced by first-time buyers.
Sam Mitchell (Purplebricks): Criticized the government for not cutting stamp duty, suggesting it missed an opportunity to aid the housing market’s recovery.
Nick Leeming (Jackson-Stops): Pointed out the absence of anticipated support measures, urging the new housing minister to take action.
Oliver Kent (Vita Properties): Called for more measures to assist first-time buyers and downsizers, stressing the need for reducing the cost of moving.
Dominic Agace (Winkworth): Praised the new permitted development right as a positive step for housing efficiency.
Verona Frankish (Yopa): Commented on the lack of significant measures for the property market in the Autumn Statement.
Marc von Grundherr (Benham and Reeves): Described the statement as underwhelming for the housing market.
Richard Donnell (Zoopla): Emphasized the importance of resetting the local housing allowance in line with market conditions.
William Matthews (Knight Frank): Highlighted the impact of macroeconomic shifts on the housing market and government measures.
Richard Davies (Chestertons): Expressed disappointment at the lack of initiatives to assist property buyers, particularly first-time buyers.
John Stephenson (BDB Pitmans): Suggested that any significant changes to stamp duty might be postponed until after the next General Election.
Chris Hodgkinson (House Buyer Bureau): Acknowledged the government’s focus on addressing housing supply issues.
Karen Noye (Quilter): Offered a critical view of the mortgage guarantee scheme, citing its limited impact.
William Reeve (Goodlord): Welcomed the change to Local Housing Allowance, noting its potential benefits for renters.
Mobeen Akram (Mortgage Advice Bureau): Highlighted the need for action on nutrient neutrality mitigation measures to unblock housing projects.
Sherrelle Collman (Caridon Landlord Solutions): Appreciated the increase in Universal Credit and Local Housing Allowance, but called for more support for private landlords.