In his ahead-of-schedule Spending Review, Chancellor Rishi Sunak announced last week £20 billion worth of funding to support new housing, with £12.2 billion put into the Affordable Homes Programme and £7.1 billion invested into the National Home Building Fund.
The UK government announced last week that capital spending next year would “total £100 billion, £27 billion pounds more in real terms than last year” with their priorities set to delivering their “record investment plans in infrastructure”. In Sunak’s outline, he introduced substantial spending on housing and pledged to “introduce a £20 billion fund to support new housing from 2020 to 2021 and boost the UK property market”.
With a focus on providing the UK with a “once in a generation” opportunity for returns to our country, Sunak also highlighted that these plans would “deliver the highest sustained level of public investment in more than 40 years” and introduced a 2.2% increase in the minimum wage from April, rising to £8.91 per hour.
Amongst the allocated spending for the building of new homes, other factors of spending were noted, such as their plan to provide faster broadband for over 5 billion premises in the UK and simplifying their planning system. Unfortunately for the property sector, the rumoured extension to the Stamp Duty Land Tax holiday coming to an end 31st March 2021 was not confirmed, with the speech providing no mention of changing “any property taxes in the short term”.
With the National Infrastructure Strategy in place, the government expects the economy to shrink back to pre-pandemic levels by the end of 2021 and is hopeful for the regeneration of our economy post-coronavirus outbreak.