Budget to include further support for housing
Chancellor Alistair Darling is expected to announce further support for the housing sector in today’s Budget.
Predictions for the Budget include the abolition of stamp duty on the sale of homes valued at under £250,000. There have also been suggestions a ‘significant’ announcement on affordable housing is possible, although details were scarce.
The results of the government’s consultation on reform of council housing finance are not expected to be released alongside the Budget, although it may be mentioned. Instead detailed plans for the housing revenue account subsidy system will be published on Thursday.
A temporary freeze on stamp duty for homes worth between £125,000 and £175,000 finished at the end of last year. Evidence suggests this boosted the housing market in areas where prices are low, and a more generous tax exemption would be likely to give wider gains.
Other ideas reported to be in the Budget include new legislation to force banks to give accounts to anyone with a home address.
Housing associations have reported that many of their tenants suffer financial exclusion and struggle to get banks to give them accounts under current rules.
Lisa Pinney, head of finance at RCT Homes, said: ‘For many of us bank accounts are seen as an automatic right but we have cases of tenants who were unable to open even a basic account.
‘This means that they would miss out on added benefits such as direct debit facilities, and ensuring savings on fuel payments.’
She added research undertaken by RCT showed only a third of its tenants have a bank account and of those only half use them for paying bills.
Housing bodies have been lobbying for a range of measures in the run up to the Budget.
The National Housing Federation has called for an investment of £11.7 billion between 2011 and 2014 to deliver 50,000 new affordable homes each year.
The Environmental Industries Commission has said developers should be able to finance home environmental improvements through future tax revenues.
And the Council of Mortgage Lenders and the Home Builders Federation have said the government must clarify how it plans to manage the funding gap left by the expiry of its special liquidity and credit guarantee schemes.
Check back later today for all the latest Budget stories. Subscribers to the Daily News bulletin will also receive a breaking news bulletin with all the key Budget stories this afternoon.
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Readers' comments (4)
Housing Professional | 24/03/2010 10:56 am
Well Housing associations wouldn't need so much support if they had been better managed during the good times! Sets a good precedent for the future that failure pays!
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simon stokes | 24/03/2010 11:49 am
""Housing Professional | Wed, 24 Mar 2010 10:56 GMT
Well Housing associations wouldn't need so much support if they had been better managed during the good times! Sets a good precedent for the future that failure pays!""
Its not just HA's, LA's are just as much in a mess because they dont know how to run a business properly and actually plan for the future! Put all the bosses on performance related pay based on tenant satisfaction would sort them out, but clearly no chance of that.
Be interesting to see what comes out on the HRA tomorrow.
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Housing Professional | 24/03/2010 1:04 pm
Bosses on PRP based on tenant satisfaction would be great and should be norm in a democratic society. However in the HA sector this is how it works: Tenants are unhappy and complain to the regulator who scrutinises the HA they pay off the Chief executive with a wheelbarrow full of money and appoint a new chief. The new CEO at least buys them time and if they are good turns things around. Guess what if they ain't that good then another wheelbarrow comes out. so if you know the right people best get into a CEO position and buy yourself a big wheelbarrow! Regardless the tenants by complaining are losing their own money. what a system!
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Nicko McBride | 24/03/2010 2:21 pm
Yeah, HAs and LAs should learn to operate like businesses. Like banks, for example, which always plan for the future, and never get in a mess or reward failure.
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