The "Broken Housing Market" Whitepaper

Yesterday, Secretary of State for Communities and Local Government, Sajid Javid, released a Housing White Paper and spoke in the House of Commons, stating that “The government recognises the housing market is broken” and “we have to build more, of the right homes in the right places”. You can read the white paper here.

The government will now place more emphasis on the rental market as an alternative to home ownership.

Conveyancing Executive, Jennifer Smith, has followed the announcements and provides this summary for ease of reference:

• Target to build 1 million new homes by 2020 (a rate of 250,000 per year) and encourage more affordable rental properties through a Build to Rent Scheme. Affordable is defined as 20% below market value 
• Incentives to landlords for ‘family friendly’ three year guaranteed tenancies to increase stability and security.
• Encourage institutional investment in the Private Rented Sector 
• A £3billion fund to help small building firms compete against major developers and to support pre-fabricated off-site construction.
• Reducing the time allowed between planning permission and the start of building to two years (currently three years).
• Require all councils to make an honest assessment of the housing need in their area and to plan on that basis, including the need of first time buyers and the retired looking to downsize.
• A lifetime ISA to help first time buyers save for a deposit with a 25% bonus on up to £4,000 of savings a year.
• Green belt protection will not be weakened, apart from exceptional circumstances.

The White Paper also reiterated that the government’s proposed ban on letting agency fees for tenants, announced in November 2016, will get the go ahead, but no timescales have been given. The ban would means tenants no longer being required to pay fees when signing a new tenancy agreement.

Jennifer comments "With this white paper and Sajid Javid's statement, the government has shown its intention to 'help the tenants of today, facing rising rents, unfair fees and insecure tenancies' and to 'help the home owners of tomorrow, getting more of the right homes built in the right places'. It remains to be seen how some elements of this vision will impact on the local housing market in Dorset."

Our Conveyancing Team, based in Christchurch, also cover Bournemouth, Poole and the New Forest. If you have any questions, you only have to ask us at Frettens. Please call 01202 499255 and Jennifer or her team, will be happy to chat about your situation and you particular requirements.