by Rosie McLean 
Anyone with an interest in the property market was listening intently to Chancellor Jeremy Hunt’s Autumn Statement on November 22. The market has witnessed rising rents and mortgage rates, high interest rates and a lack of supply that has impacted buying, selling and renting trends. So what announcements were there that will help buyers, sellers, landlords and tenants?
The 2% cut in employee NI rate put a little more money in people’s pockets, as did the NI adjustments for the self-employed. This might provide a little help for those trying to meet the stricter affordability criteria imposed by mortgage lenders and tenants struggling with increased rents but there were other, more targeted measures, too.
More support for those struggling to pay rents
One of the most significant announcements for many was the unfreezing of the Local Housing Allowance. The National Housing Federation, for example, welcomed the move which will raise the LHA to the 30th centile of local market rents. Alongside changes in benefits payments, as well as the National Insurance cuts, NHF said it would give much-needed relief to those struggling with living costs. Hunt said the LHA increase would deliver an additional £800 for support for 1.6 million households when it’s introduced next April.
More time for would-be buyers with low deposits
In December 2022, the Government announced a 12-month extension to the Mortgage Guarantee Scheme which was first launched in April 2021, and which protects lenders against losses when they are lending to first-time and other buyers with low deposits of 5%. At that point, it had already helped more than 24,000 households to buy, 85% of whom were first-time buyers.
In the Autumn Statement Hunt added a further 18-month extension to the scheme until June 2025, giving much needed extra time for those wanting to get on the property ladder but needing the additional support it gives.
Improving the buying and selling process
Digitisation of the buying and selling process has long been an aim of the industry, since it helps to speed up transaction times, provides more reliable data and can reduce the likelihood of deals falling through. The Autumn Statement included a £3 million pledge to continue development in this area, including pilots to develop property tech products and to digitise local council property data.
Unlocking building barriers to increase housing stock
While the Government has already announced housebuilding projects, the Autumn Statement revealed support to get those developments hindered by regulatory challenges moving more quickly, which in the long term will release more housing stock to the market and reduce the supply constraints. These included investment into a fund that helps to offset nutrient pollution on protected land which aims to help unlock stalled planning permissions.
£5 million of additional funding has also been pledged for the Department for Levelling Up, Housing and Communities’ Planning Skills Delivery Fund for Local Planning Authorities which aims to target planning application backlogs.
A doubling of the Affordable Homes Guarantee Scheme
The Government also outlined the expansion of the existing £3 billion Affordable Homes Guarantee Scheme with a further £3 billion which will be used to support housing associations and allow them to access cheaper loans for quality and energy efficiency works, as well as new homes.
The ability to subdivide houses more easily
Also announced was a planned consultation early in the New Year for a new Permitted Development Right which will allow houses to be subdivided into two flats without changing the façade. This will be implemented in 2024 following the consultation.
