In a spring statement somewhat overshadowed by Theresa May’s defeat of her Brexit deal on Tuesday night, and announced just before another “crucial” Brexit vote in the commons. It’s hard not to feel a little underwhelmed by Phillip Hammond’s latest budget, leaving some commentators to refer to it as the “mini-budget”
None-the-less there were some announcements around property and the broader economy that could be of interest to property investors.
House Building and Affordable Homes
- £717 million from the £5.5 billion Housing Infrastructure Fund to unlock up to 37,000 homes at sites including Old Oak Common in London, the Oxford-Cambridge Arc and Cheshire.
- Through the Affordable Homes Guarantee Scheme, the government will guarantee up to £3 billion of borrowing by housing associations in England to support delivery of around 30,000 affordable homes
- Further progress on delivering growth in the Oxford-Cambridge Arc including £445 million from the Housing Infrastructure Fund to unlock over 22,000 homes.
- Up to £260 million for the Borderlands Growth Deal, which on top of the £102 million announced recently for Carlisle from the Housing Infrastructure Fund means up to £362 million UK Government funding into the Borderlands area
Green Property Development
New homes will be banned from using fossil fuel heating systems from 2025.
Hammond acknowledged that a No deal Brexit would have a short-term hit to the economy and as a result cut the 2019 growth forecast to 1.2%, but maintained that the UK economy will still grow by 1.4% in 2020, as previously forecast. He also announced that the government is preparing for the UK to cut tariffs in the event of a no-deal Brexit.
Commenting on the broader economy and Brexit, Brickowner’s CEO Fred Bristol said, “A Brexit bounce over the coming months could see the economy and property sector picking up. The end of uncertainty could create more favourable conditions for investment and growth, while price adjustments may create the opportunity for increased ROI’s. In the worst-case scenario of a problematic Brexit, rates are likely to be reduced, and the financial system flooded with liquidity, causing prices to rise.”
For more information about the budget, please follow the links below: