Autumn Statement 2014: Housing affordability to worsen but fret not, you can retire in a Garden City!

Autumn Statement 2014: Housing affordability to w...

Jan Crosby, UK Head of Housing, KPMG comments on the Autumn Statement and housing affordability.

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Jan Crosby, UK Head of Housing, KPMG comments:

“The OBR forecasts suggest that the average price of a house will rise by £60,000 over the next 5 years – worsening affordability for those not yet on the housing ladder.

“Stamp duty receipts are expected to grow by £8bn over the same period. Some of the increased receipts should be used to fund more building, perhaps through devolving this to local authorities who are best placed to release the land and planning to get houses built.

“Stamp duty reform will help SME housebuilders and brings England and Wales in line with Scotland which has already implemented such a change. The redistribution of the banding may also help to temper the rapid growth in prices in the London market.

“Garden Cities are an important plank in fixing the housing supply issue. We need to make sure developing garden cities – such as Ebbsfleet and Bicester – is not just a rebadging exercise and moreover it’s vital that new housing developments have the infrastructure needed to build a community and get buy in from the local populations.

“The direction of travel is right but speed is of the essence. Many consultations are ongoing: how to help local authorities release more land; how to speed up planning on small schemes and funding for housing associations. These are no brainers. However, the public sector participating in the direct delivery of new housing is potentially game changing. It was only when the public sector and housing associations were active builders in the 1950s, 60s and 70s that we built more than 200,000 homes a year. Admittedly some of these developments sparked a fierce architectural aesthetics debate so it would be worth consulting on how this is implemented!”


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About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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