The storms of protests regarding disability benefits and sugar tax, that followed the Budget last month crowded out much needed criticism of George Osborne’s housing policy – which is that there isn’t one.
JohnWriglesworth, managing partner of Instinctif Partners, accuses Chancellor George Osborne of failing to address the UK's lack of housing supply in this year's Budget.
The storms of protests regarding disability benefits and sugar tax, that followed the Budget last month crowded out much needed criticism of George Osborne’s housing policy – which is that there isn’t one.
He introduced the Lifetime ISA which made it easier for some to save for a house deposit. But this is yet another measure, like Help-to-Buy, that stimulates demand and hence house prices, but does not deal with the central issue which is lack of supply. The government has promised to support the building of 400,000 affordable homes by 2020. The government’s record to date on housing does not indicate this target will be anywhere near met. Even if it was, 400,000 is still way short of the estimated 250,000 new homes needed every year. Last year only half that number were built.
Meanwhile the government announced that thebuy-to-letstamp duty exemption for landlords with 15 or more properties would be abandoned – all will now have to pay. He also clarified that there would be no let out for landlords buying through a limited company.
While some have pointed out that large landlords buying multiple properties will still be eligible for multiple dwellings tax relief, this is a minor benefit compared to the enlarged eligibility criteria for this totally unfair tax on landlords.
In my view the government has not finished with its policy of penalising the buy-to-let sector in general and landlords in particular. Watch this space! Ugh!
