Autumn Statement: what it means for the property market

Chancellor Philip Hammond's first (and last) autumn statement caught the attention of anyone involved in the housing market. The chancellor called the measures ‘an investment in the economy for the future’. Here is clarification on the new rules and the potential impact. Backed by a £23 billion National Productivity Investment Fund, Hammond announced a series of measures that include: £2.3bn Housing Infrastructure Fund to help build 100,000 new homes in high-demand areas. Less than two-thirds of the population owns their home in much of the UK, with increasing numbers renting as house prices rise. £1.4 billion to deliver 40,000 affordable homes This will take time to increase supply into the housing market. At present, experts say that a lack of homes on the market is pushing up house prices. A ban on upfront fees charged by letting agents The cost would be shifted to landlords, as is the case in Scotland. The argument is that they have the power to shop around for the cheapest agent when letting out their property. Relaxation of restrictions on grants for alternative housing providers £1.8bn Local Growth Fund money to English regions for infrastructure investment £1.1bn extra investment in English local transport networks A remit for the National Infrastructure Commission to recommend how to spend between 1 per cent and 1.2 per cent of GDP annually on infrastructure. No reversal of stamp duty charges for second homes or on cuts to mortgage tax relief Following April's stamp duty increases and the announcement of cuts to mortgage relief for rented properties, there has been a decline in the number of landlords buying investment properties. Some see this as good news for first-time buyers, because it reduces competition in the starter home market. Others argue that this means fewer rental properties will come to market. Overall, the property industry was positive about the explicit connections between housing, infrastructure and productivity, but questioned the absence of detail in the announcements. This year's Autumn Statement will be the final one. Starting next year, the UK will have a Budget in the autumn, while a Spring Statement will be issued from 2018, replacing the March Budget.