Updated: Spring Statement Preview – is Rishi listening?

The government’s spring statement will be one that was little anticipated a month ago. The war in Ukraine and a compounded energy and fuel crisis, in addition to rising inflation and interest rates mean any attention to “details” in the country’s fabric – such as housing – may have become redundant in the Despatch box this time around, though we can hope.

That said, rebuilding hopes on housing policy within the framework of set government priorities continues the conversation. The British Property Federation (BPF) is urging the Chancellor of the Exchequer, Rishi Sunak, to use the Spring Declaration this week to support actions to support the government’s ambitions to rebuild the country, decarbonise the economy and d ‘Cost of living crisis felt by millions.

Lobbying the government ahead of the Spring Declaration, the BPF channeled policy promotion into three key objectives that work well with stated government objectives:

A greener, decarbonized future
Remove the VAT on repairs and maintenance of residential buildings to ensure that the tax is not a blocker for anyone who wants to improve the energy efficiency of their own home.
Use capital loans to accelerate tax cuts on retrofitting and energy efficiency improvement work.

Blooming city centers
Accelerate the renewal of our highways through Town Center investment zones.
Progress with the reform of business rates by increasing the frequency of revaluations, extending empty tariff relief and abolishing the phasing out of interest rates.

Housing of the Nation
Stimulate institutional investment in affordable housing.
Temporarily stop all council tax assessments of homes and multiple occupation.

Melanie Leech, CEO of the British Property Federationcommented, “The government is committed to achieving a low carbon footprint by 2050 and creating a more economically balanced and socially just society. The real estate sector has a vital role to play in delivering both of these ambitions and we urge the Chancellor to Using the Spring Declaration to accelerate investment and action. By partnering with the public and private sectors, we can revitalize our highways and city centers and help both businesses and individuals reduce their carbon footprint.

Timothy Douglas, Head of Policy and Campaigns, Property Mark focuses more closely on tax measures commenting, “The Spring Declaration is a good platform for launching a series of consultations. Key issues facing the housing market now in the sales and rental market are supply, affordability and energy efficiency. There are a Number of ways such as taxes can be used by the UK Government to simplify these issues.

“In the selling market, the SDLT thresholds are outdated and should be revised in line with house price changes. In the rental market, homeowners are feeling the weight of the tax changes over the last few years and this needs to be rethought. For tenants, affordability is an issue, especially for those who get universal credit.LHA rates just do not keep up with market rents and payments to tenants are completely designed to work for the private market.

“In 2021, energy efficiency was hugely on the agenda across all housing, sales, rental and commercial. To make changes feasible, financial aid must be introduced. Cutting VAT on green home improvements would not only help people emit in their daily lives, but also give businesses a boost and help the real estate sector meet the forthcoming new energy efficiency standards.

Jeremy Leaf, North London real estate agent and former RICS housing president, says: “More balance in the housing market helps keep real estate prices in check; as we emerge from Covid restrictions, anything that encourages new care is helpful, especially that of affordable housing to buy or rent.

“What is happening in the sales market is reflected in the rentals – there is a shortage of stock, so rents and prices are going up, and it’s important not to lose any more homeowners. We do not want to see any further deterrent to homeowners, because as we have already seen, this accelerates the sale of real estate, negatively affects supply and means higher rents.

“Some help to alleviate the backlog in the judicial system in terms of property and antisocial behavior would be welcome. We want to care for and support Generation Rent, but also the landlords must be able to remove difficult tenants.

“Some resolution of the disguise crisis would help free up more properties on the market because owners who want to move can finally sell. These are so often the more affordable real estate, especially apartments, that appeal to first-time buyers.

“Strict anti-money laundering rules would be a popular move, but there are many good rules out there that are not being implemented. We hear of so little action under the current regime.

“There’s probably a focus on heat pumps, with subsidies almost certainly, but it makes no sense to do so unless there is enough consumer buying and confidence in the product, which is not there right now. Consumers are worried about the maintenance and service of heat pumps and there must be more confidence around their operation.