Budget: Well that was a surprise (only joking)

Rachel Reeves has just delivered Labour’s first budget for over 14 years. And, whilst it contained some very significant tax changes and funding commitments, almost none of it could have come a surprise to anyone who’d kept half an eye on the daily announcements, leaks and international press events over the last few weeks.  For completeness then, here is a round up of what’s in it for the housing sector:

SDLT: There is a very targeted increase in Stamp Duty Land Tax, being higher rates for Additional Dwellings (eg second homes or buy-to-let properties) and where companies purchase residential property.  The additional rate in such circumstance will increase from 3% to 5% from tonight. That’s on top of the sliding scale standard rates of SDLT that apply to the rest of us.  The theory is that, in addition to raising revenue, this will disincentivise second homes and buy-to-lets giving people who just want to buy a house to live in it a better position in the market. 

AHP21-26: The Chancellor reiterated the Government’s goal of building 1.5 million homes in the lifetime of this parliament.  That’s an average of at least 300,000 a year.  And, given that it’s inconceivable that that average will be achieved in the first few years it is, in reality, an even higher ambition for later years.  And to help, she confirmed that a further £500 million will be added to the Affordable Homes Programme 2021-26 which, prior to that announcement, had committed all of its remaining funds.  Life beyond AHP21-26 will be confirmed in the Spring (although watch this space for leaks and announcements well before then).  They’ve already trailed a shift away from home ownership and affordable rent to social rent provision.  

Specific developments: Funding to a number of specific projects was confirmed including Liverpool Central Docks which aims to deliver, on its own, 2,000 homes.

Rent settlement: A rent settlement of at least CPI + 1% for 5 years is a certainty.  Government will consult around whether the time period can be stretched beyond 5 years to give genuinely long-term certainty.

RTB: Discounts on Right to Buy will be reduced, disincentivising people from exercising that right and increasing the monies received by the Councils where they do.  And Councils will now be able to keep all of those receipts.

Guarantees: £3 billion will be provided as additional support for SMEs and the Build to Rent sector, in the form of housing guarantee schemes, to support the private housing market.

Planners:  The Chancellor confirmed the provision of £46 million of additional funding to fund the Labour Manifesto commitment to recruit and train 300 graduates and apprentices into local planning authorities and so accelerate large sites that are stuck in the system, and boost and upskill local planning authority capacity.

Nutrient neutrality: The Budget also confirms £47 million of funding to support the delivery of up to 28,000 homes that would otherwise be stalled due to nutrient neutrality in affected catchments.

Homelessness: £233 million of additional spending has been earmarked in 2025-26 to tackle homelessness, taking total spending to £1.0 billion in 2025-26.

Building safety: Additional investment of £1 billion in 2025-26 was announced in connection with building safety. This includes new investment to speed up remediation of social housing.