The budget 2017 was delivered by Chancellor Philip Hammond to the house of commons yesterday with reassuring news for the housing market, first-time buyers and the North. Overall the recent budget has confirmed the government’s dedication to the Northern Powerhouse and deliver new property policies designed to benefit both purchasers and investors.
Stamp Duty and first-time buyers
The main headline and those seeming to benefit most from the Chancellor’s Autumn budget looks to be first time buyers with stamp duty being abolished on properties up to £300,000.
This means a stamp duty cut for 95% of first-time buyers who pay stamp duty and 80% who would pay no stamp duty at all.
“When we said we would revive the home-owning dream in Britain, we meant it,” said Hammond. He stated he was responding to the concerns of many young people, their place and prospects within the housing market.
The Housing Promise
Mr Hammond said his Autumn statement would “support more housebuilding, raising housing supply by the end of his Parliament to its highest level since 1970”. And with that, he announced the commitment of £44bn of capital funding to help build 300,000 homes annually by 2025.
Over the next five years, the government will aim to boost the supply of skills, resources and building land as well as creating financial incentives to create these homes.
Mr Hammond claimed housebuilding is now at its highest level since the financial crisis, a “remarkable achievement”.
Extra money also looks to be allocated to the Home Builders Fund in order to get SME housebuilders building again.
The Northern Powerhouse
Although some were concerned that The Northern Powerhouse had taken a backseat in the government’s future plans we have been reassured and boosted by the launch of a £1.7bn ‘transforming cities fund’.
The Chancellor also announced the development of a local industrial strategy with Manchester, the West Midlands and north of the Tyne, with a focus on devolution to the regions vowing to give “power back to the people of Britain” and drive prosperity across the country.
So what does the Northern Powerhouse really mean for Manchester? The investment in the transforming cities fund as well as the improvements to transport and infrastructure laid out at this year’s’ party conference clearly shows the Government’s recognition of the growth Manchester has seen and the potential Manchester has to offer.
Ultimately the recent budget has reaffirmed the government’s intention to build a lot more homes across the country, therefore providing serious opportunities to invest in property moving forward. This tied with October’s HomeTrack index reporting the steady and reliable year on year growth of Manchester’s property market supports the future for Manchester.