The CML was pleased that the pre-Budget statement did not increase the level of stamp duty. However, the structure of stamp duty remains deeply flawed and the CML is disappointed that the Chancellor has not yet taken the opportunity to resolve this problem.
Also published today is Kate Barker's interim report on housing supply. The interim report sets out the problems with housing supply, but policy recommendations will follow later, in the final report due next spring.
Commenting on both the pre-Budget statement and the Barker review on housing supply, Peter Williams, CML Deputy Director General, said:
"For the first time in a number of years, we now have an authoritative analysis quantifying the deficit in UK housing supply and the reasons for it. Looking ahead to the policy solutions, there will need to be a clear focus on tenure issues. Increasing the supply of rental property will only partially address the problems if the majority of frustrations are among those who wish to own.
"This raises the question about what the Government sees as housing policy priorities. Is it more important to increase the supply of rental housing, or to meet the aspirations of those who wish to be home-owners? While the CML sees a need for more rental property, we also believe the Government needs to keep firmly in mind that home-ownership is the preference for 80% of the population. Both supply and affordability issues for home-ownership need to take a high priority."
