When Philip Hammond delivered his Spring Statement yesterday, we were left feeling positive about the housing market.
A well-balanced cocktail of investment and job creation caused our economy to exceed expectations in 2017, and the UK’s financial state is set to be boosted further in 2018 with 1.5% growth forecast by the end of 2018.
Unemployment is at a 40-year low and the Office for Budget Responsibility (OBR) predicted that there will be 500,000 more people in work by 2022.
Overall, it paints a positive picture for our economy.
And one area which featured heavily in his speech, was the property market.
Speaking at the House of Commons, Mr Hammond outlined an ambitious plan to fulfil the UK’s housing requirements.
So here’s what the Government is doing to help:
- £44 billion has been set aside over the next five years to increase the supply of homes by 300,000 per annum.
- 44 local authorities that are seeking part of the £4.1billion Housing Infrastructure Fund are being supported. This will provide an injection of cash to get additional sites allocated for development.
- The Housing Growth Partnership — which supports SME house builders with investment — has been doubled to £220 million.
Plus, we can’t forget that stamp duty was abolished for first-time buyers at the Autumn Budget in 2017. The Chancellor estimated that this has benefitted 60,000 new homeowners so far.
When coupling these policies with an expected fall in inflation and rise in wages, as well as an expected fall in debt, it provides us with an optimistic outlook on the housing market. After all, these factors provide a breeding ground for saving — perfect for those looking to take their first or next step on the property ladder.
Making a remark on Brexit, Philip said: “Our economy will remain outward looking, confident and ready to compete with the best in the world”.
We’re left feeling like there’s light at the end of the tunnel. Do you agree? Let us know on Twitter @katebmortgages.