Budget 2018: How will it affect you?
02 November 2018
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Chancellor Phillip Hammond’s 2018 Budget was announced earlier this week and with it came some positive changes to housing and planning. In addition to the expected extension of Help to Buy, Mr Hammond introduced a number of new initiatives which should stimulate the housing market.
At a glance:
- Help to Buy to be extended to 2023.
- Stamp duty cut for first-time buyers of shared ownership properties.
- £500m to fund the building of new homes.
- £675m to transform disused buildings on the UK High Street.
Changes to stamp duty
Stamp duty has been abolished for first-time buyers of shared ownership properties valued up to £500k.
The move has been welcomed by many – especially since the legislation will be applied retrospectively to all purchases since the last Budget. So, if you’re a first-time buyer who paid stamp duty and completed after September 2017, you could be due to a refund.
Extension to the Help to Buy scheme
The Help to Buy scheme, in which the government loans money to first time buyers, was originally due to finish in April 2021. However, following this budget, Help to Buy has been extended to 2023 which will allow more first time buyers to benefit from this initiative.
More new homes to be built
It was announced that a further £500m is to be allocated to the Housing Infrastructure Fund which local councils can apply to for help with building new homes
Mr Hammond estimated that this would lead to the creation of 650,000 new homes.
… plus more homes on the High Street?
The Chancellor announced that £1.5 billion is being set aside to help transform the UK’s failing High Streets. This will include a £675m fund which could, in theory, help councils transform disused shops into residences.
It is estimated that up to 400,000 new homes could be created by making use of empty space above shops on the UK’s High Streets.