\nYesterday (November 22) Philip Hammond, Chancellor of the Exchequer, delivered the Autumn Statement to Parliament and announced that stamp duty would be abolished on all first time buyer purchases up to \u00a3300,000, and on the first \u00a3300,000 of homes up to \u00a3500,000.<\/p>\n
The treasury estimates the move, which has applied from 00.01 on 22 November, will take 80% of first time buyers out of paying stamp duty altogether.<\/p>\n
He pledged to invest \u00a344 billion in housing through capital funding, loans and guarantees to boost housebuilding to 300,000 homes a year. Hammond said the fund would be available over the next five years \u201cto support the housing market and boost skills and land\u201d.<\/p>\n
The chancellor also announced an inquiry into the gap between planning permissions and homes built. Hammond said that if land was being withheld for commercial not technical reasons, there would be \u201cdirect intervention\u201d.<\/p>\n
Introducing the measures, Hammond acknowledged that housing was a \u201ccomplex challenge\u201d with no \u201csingle magic bullet\u201d.<\/p>\n
But he also said:\u00a0\u201cWe send a message to the next generation \u2013 [home ownership] is not just a dream of your parents\u2019 past, but a reality of your future.\u201d<\/p>\n
Darren Wright, operations director at Mulberry Homes, said: \u201cScrapping stamp duty for first time buyers up to \u00a3300,000 is a welcome move for the majority of our first time buyers at our new homes across the Midlands and South East and one that Mulberry Homes wholeheartedly supports. For too long stamp duty has stifled the market, it\u2019s a tax on mobility and Britain has been a poorer place because of it.<\/p>\n
\u201cToday\u2019s commitment of \u00a344 billion over the next five years to support the housing market is very encouraging for the sector and also for the overall UK economy. Hammond\u2019s plans to support smaller developers by improving access to funding, skills and land marks a positive step\u00a0towards tackling the chronic shortage of housing stock in the UK.\u201d<\/p>\n
However Wright expressed his disappointment at the announced \u201cuse it or lose it\u201d inquiry: \u201cThe idea of yet another review into whether house builders are hoarding land is unbelievable.\u00a0 Wherever Mulberry Homes have planning consent, we get on and build as quickly as we can, tying up lots of capital in land without any houses on them simply isn\u2019t in our financial interests.\u201d<\/p>\n