The Chancellor, Philip Hammond announced in his Autumn statement this week that he is going to introduce a ban on letting fees. However there has been some concern in the industry that this could result in a lack of letting investment, less quality control and a reduction in customer service for tenants.
Hammond also stated there would be further investment in the UK’s housing structure, pledging an extra £2.3bn of investment, which would build around 100,000 homes in areas with high demand, as well as an investment of £1.4bn for 40,000 more homes. He said: “For many the goal of home ownership remains out of reach. The challenge is not a new one but the effect of unaffordable housing on our nation’s productivity is an urgent one.”
However some critics have said that this is way short of the amount of houses we need to have in the UK to tackle the housing crisis. Mark Hayward, managing director of the NAEA, said: “The creation of 40,000 new homes that this new funding is expected to deliver is still painfully short of the number of affordable homes we need to solve the housing crisis and get first time buyers on the housing ladder.
“It is vital that the Government uses this to signal a radical rethink in its housing strategy and consider measures such as building homes on unused Green Belt land to really kick start the house building boom we badly need.”
A regional pilot scheme enabling housing association tenants the right to buy, would also be introduced as a White Paper in due course.
Source: Property Eye