Landlords, estate agents and surveyors have all given yesterday’s Budget an unqualified thumbs down after the Chancellor chose to focus on economic growth but ignore several problem threatening to engulf the housing market.
All have said the budget was disappointing and a ‘missed opportunity’ to invest in the UK’s housing market and head off some looming problems.
These include an affordability crisis looming for first time buyers, a mortgage affordability crunch for those coming off low fixed rate loans, and a supply shortage in the private rented sector.
Chris Norris, Policy Director for the National Residential Landlords Association
“The Chancellor spoke of growth yet did nothing to introduce the pro-growth measures that are necessary if the private rented sector’s supply crisis is to be addressed.
“The current system, under which landlords are penalised for providing new homes to rent, only makes it tougher for many renters to access good quality rental properties.
“Without a comprehensive review of how the sector is taxed, supply and demand issues will only become more acute as time goes on.
“Today’s Budget also does nothing for those who are in receipt of housing benefit payments, who will continue to face an unjust freeze on the support they need.”
Nathan Emerson, CEO of Estate Agent Body Propertymark
“The Chancellor has outlined a positive economic outlook in relation to growth, inflation and debt that will provide confidence to those looking to buy and sell their homes.
“Additional funding for Levelling Up regeneration projects will also help to develop communities and places where people want to live.
“However, despite the continued focus on VAT relief for energy saving materials it is disappointing that funding for energy efficiency improvements be-it for homeowners or landlords is not on the UK Government’s agenda and the Budget is a missed opportunity to support people to de-carbonise the housing sector.
“Additionally, there was no mention of tax incentives to boost much needed supply in the private rented sector.
“Whilst we recognise the UK Government’s focus on getting more people into work, there is little appetite to improve the welfare system and support those who are struggling the most which will have a continued knock-on impact particularly for those low-income households who rent.”
A RICS spokesperson
“RICS is disappointed by the lack of housing ambition in this budget. The fallout from the ‘mini-budget’ hit the housing market hard, and we still have the challenges of limited housing stock and rising rents as reported again in last week’s RICS UK Residential Market Survey.
“Investment and support in creating housing stock both in the right place and of the right tenure, to support both buyers and renters is critical now more than ever.
“This could be through new builds and suitable, standards-driven conversions, given the removal of housebuilding targets. With political will, there is a way.”