The Government’s Autumn Statement and Spending Review were delivered by George Osborne this week as he sets out his spending plans and thoughts on the economy, with plans to try and help the housing market unveiled.
Delivering the review George Obsourne declared that he plans to “end the crisis of home ownership in our country.”
The Chancellor plans to double the housing budget to £2 billion a year and build 400,000 new homes across the country. This would be the largest house building programme since the 1970’s.
‘Young hardworking families’ were a focus of the statement as plans to invest £2.3 million directly to house builders to encourage them to build 200,000 starter homes were revealed.
Shared ownership schemes will also benefit as £4 billion will be allocated to help build 135,000 shared ownership homes. The Government stated it was keen to ensure owners could purchase more shares within a shared ownership property, to help them towards their goal of home ownership.
Mr Osborne said, “I am clear, in this spending review we choose housing. Above all we choose homes that people can buy.”
“For there is a growing crisis of home ownership in our country. We made a start in the last Parliament, and with schemes like Help to Buy the number of first-time buyers rose by 60 per cent.
From 1st April 2016 tax is set to increase for those purchasing a second property or a buy-to-let investment property. Purchasers will be set to pay an additional 3% in stamp duty on all second home purchases and buy-to-let investment properties. Money raised from tax on people buying their second home will be used to help those struggling to buy their first home.