Chancellor of the Exchequer, George Osborne, annouced the 2016 Spring Budget this week. Here are some of the key points on how it's going to affect the London property market.
Andrew Bridges, managing director of Stirling Ackroyd comments on the announcement: “The Chancellor is chancing London’s status as a world-leading capital. What Londoners needed today was a bold move to free the capital from housing uncertainty – but what we got was mainly a bigger bet on the same status quo.
“If incremental, the direction of travel seems correct. Today might be a starting point in tackling the complex planning system. A more integrated effort between local councils and central government may help. Too often, the multiple stages of planning applications deter builders, and deny Londoners new homes.
“But the biggest problem will be transforming attitudes. Across 2015, London borough councils rejected 23% of potential new homes. Even if everything goes exactly as hoped-for in the latest Mayoral plan, London will face a minimum yearly shortfall of 6,450 – a massive 13% of the new homes needed unless boroughs exceed targets.
“Policies to increase density on brownfield sites is good news and should encourage more development. Higher density buildings near the centre of London provide the key for housing – helping more people onto the ladder. But again, the practical means by which this is done still needs to be fleshed out.
“The Chancellor may have a long term plan for the economy – but a viable long term plan for housing in London remains to be seen.”