Pre-Budget Report: Housing

Gordon Brown has announced a package of measures aimed at increasing Britain's housing supply.

The chancellor said he was committed to building more homes for future generations by bringing forward "an ambitious package of measures".

And he said reforms of the planning system and increased investment in infrastructure would "support sustainable housing growth".

Brown said a new tax - called a "planning gain supplement" - would increase the estimated £2.5bn generated annually by local planning agreements.

 

Stakeholder Response: Council of Mortgage Lenders

 

 

Peter Williams, CML deputy director general, said: "Although the package of measures to address housing supply in the UK may well still fall short of the Barker targets, we are heading in the right direction.

 

"The new private funding for equity loans, although modest in scale, will give us real experience of operating a public/private support scheme for first-time buyers.

 

"If it succeeds, it could over time open up a welcome increase in flexible options across the wider housing market."

 

 

Stakeholder Response: CPRE

 

 

Neil Sinden, CPRE's policy director, said:

"The government's approach to tackling the lack of affordable housing appears increasingly wrongheaded, inadequate and ignorant of the environmental implications.

 

"The outcome could see the worst of all possible worlds: a failure to provide housing for those in greatest need, a reversal of recent progress in urban renewal, and a return to the days of unsustainable sprawl across the countryside.

 

"CPRE accepts there is a desperate need for more affordable housing. But this is not the way to meet it."

 

 

Stakeholder Response: Age Concern

 

 

Gordon Lishman, director general of Age Concern England, said: "It is encouraging that the government recognises the problem of affordable housing.

 

"With around a third of households consisting of at least one pensioner and the older population set to grow,  any housing reforms needs to ensure that new homes can meet the changing needs of people throughout their lives."

 

 

Stakeholder Response: Nationwide

 

 

Nationwide executive director Stuart Bernau said: "Nationwide Building Society is to take part in the government's new Open Market HomeBuy scheme. 

 

"The scheme, which will be launched on a pilot basis from October 2006, aims to help an additional 20,000 households into home ownership by 2010. 

 

"HBOS and Yorkshire Building Society are also supporting the scheme.

 

"Lenders will provide a 'top-up' equity loan along with the buyer's mortgage, for example, a 75 per cent mortgage with a 12.5 per cent equity loan, with the remaining 12.5 per cent being provided by the government. 

 

"Further discussions on the details of the scheme will continue between the government, the Council of Mortgage Lenders and the lenders.

 

"We're pleased to be involved with this scheme to bring 20,000 more first time buyers into home ownership. 

 

"It is a natural step for Nationwide as we have the largest commitment of any lender to the affordable housing sector in the UK.  It's in everyone's interest that first time buyers are able to get a foot on the housing ladder and we are keen to play our part."

 

 

Stakeholder Response: British Retail Consortium

 

 

 

BRC director general Kevin Hawkins said: "Planning Gain Supplements (PGS) will be a significant barrier to growth in the economy. 

 

"The government has failed to take advice from industry experts and has now announced a public consultation, which is clearly not needed as the entire industry has already stated that a PGS will compromise the viability of development in the UK.

 

"Many retail development schemes, particularly those in areas of re-generation, will now be at risk and may threaten the valuable contributions made by retailers to the local community.

 

"Previous governments have tried on a numerous occasions to implement PGS but without any success.

 

"Administering the scheme is likely to be costly and complex and will only add to the burden of already overstretched Revenue or district valuation officials."

 

 

Stakeholder Response: Construction Products Association

 

 

Commenting on the Chancellor’s Statement the Association’s Chief Executive, Michael Ankers said: "Whilst the Pre-Budget Report avoided announcing any significant tax increases that would affect our industry, there was little positive news for the industry. 

 

"Although the government gave a positive gloss to its response to the Barker Review, the scale of additional housing that is proposed is much less than Kate Barker had recommended and we remain to be convinced that the mechanisms will achieve what is proposed. 

 

"On the environmental issues, there was no attempt to resolve the issues highlighted by the Association in respect of the Climate Change Levy and the EU Emissions Trade Survey, and it was particularly disappointing that the government did not respond positively to the Association’s proposal for helping to improve the energy efficiency of the existing housing stock."

 

"We welcome the Chancellor’s appointment of Kate Barker to lead an investigation into the ineffectiveness of the planning system. 

 

"Our concern is that we have had a number of reviews that have failed to deliver the results that industry needs.  It is to be hoped that this government will respond positively to her findings"