United Kingdom

Details

  • Industry: Government & Public Sector, Social Housing, Local Government, Real Estate
  • Type: Press release
  • Date: 05/12/2013

Autumn Statement 2013: 7.2% house price inflation forecast underscores need for action 

5 December 2013

 

Jan Crosby, Head of Housing at KPMG, said

“The house price inflation forecasts of 5.2% in 2014 and 7.2% in 2015 released by the OBR today are startling and demonstrate the crucial need to create a sustainable housing market.

 

“The move by the Chancellor to give the Bank of England the mandate to act on housing bubbles is sensible and will help to create an environment of sustainable price growth, rather than the peaks and troughs suffered from in the past.  However it must be backed up with quality housing data, to ensure that policy response is considered on local data and not biased to the impact of house price inflation in the capital.  This must include data on planning permissions granted by local authorities and joined up data on new building and local house prices by type of housing stock.

 

“The long term strategic approach being taken by the government on infrastructure must now be taken on housing – giving the confidence for the whole supply chain to mobilise to deliver the growth that will follow.  At the moment many suppliers are still concerned about sustainability of support for Help to Buy/high LTV mortgages post 2015 and this risks price increases and reluctance to invest.”

 

Crosby believes the Chancellor’s decision to trial a scheme to directly compensate local households for planning granted in their areas could finally change NIMBY attitudes to development, and ultimately release supply for housing development in a massive way. 

 

“Most people don’t want housing next door to them and worry about the impact on school places, A&E waiting times and transport infrastructure that new developments might bring. Direct compensation could overcome these concerns, reduce objections to new developments and pave the way for the release of new supply,” said Crosby of the measures announced in the National Infrastructure Plan.


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Follow us on twitter: @kpmguk #AS2013

 

www.kpmg.com/uk/autumnstatement

 

For further information please contact:

 

KPMG Press office

 

Tel:  +44 (0) 207 694 8773

 

Zoe Sheppard, KPMG Corporate Communications

 

Mobile: 07770737994

 

zoe.sheppard@kpmg.co.uk

 

About KPMG:

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.

 

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Zoe Sheppard

Zoe Sheppard

PR Manager - Consumer Goods, Retail, Property, Wales and the South West Region

KPMG in the UK

0117 905 4337 / 07770 737994

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