Jan Crosby, UK Head of Housing at KPMG, comments on housing measures in the Autumn Statement.
Jan Crosby, UK Head of Housing at KPMG, commented:
“The Autumn Statement highlights that once again there is no magic fix for our housing issues. Whilst additional investment to build more affordable homes will be welcomed, funding is still at a historically low level. Some further infrastructure funding is being made available for Local Government to bring forward more housing sites, but we wait with baited breath for the housing white paper to suggest further ‘comprehensive’ measures.
“The problem with coming up with a plan for housing is that it is inextricably linked to many other policy areas, including: economic; health, transport; and educational infrastructure, for example. Typically these are not as joined up as they need to be in order to best support the increased demand for infrastructure when more people move to a certain area.
“The pricing of the existing housing stock, along with its distribution biased towards older generations, is another complexity. Existing properties are a store of wealth which drives confidence and wider spending. There are ten times more second-hand house sales than new sales, and it is this pricing which sets the value of new homes.
“There is a nod towards better integration of transport spending with housing in the detail of the Autumn Statement. The white paper however, will need to look more widely across infrastructure, devolution of spending powers, planning, taxation, public land funding, delivery models and rental tenures, as well as consider the impact of migration and the generational shift in home ownership, in order to be truly comprehensive and to move the dial on housing volume.”
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