United Kingdom

Details

  • Service: Tax, Budget 2014
  • Industry: Government & Public Sector, Social Housing
  • Type: Business and industry issue
  • Date: 24/03/2014

Sector Insight: Social Housing 

Sector Insights
The Chancellor’s Budget speech included a number of measures which will be of interest to the social housing sector, one of the more significant being the proposed phased introduction of two new Annual Tax on Enveloped Dwellings (ATED) bands, extending the regime to properties worth over £500,000. There will be a period of consultation regarding the proposed ATED changes, in particular in relation to possible simplifications to ATED administration to reduce compliance burdens, and it will be important for social housing providers to contribute to this consultation.

There are several announcements aimed at encouraging new developments, notably the creation of a new Garden City at Ebbsfleet. In addition:

 

  • A £150 million fund has been set aside to kick start the regeneration of large housing estates through repayable loans to help boost housing supplies. Bids are to be invited from private sector developers;
  • £500 million of loans for an estimated 15,000 units are to be made available to SME builders under the Builders Finance Fund;
  • The Help to Buy equity loan scheme is to be extended to March 2020 and is expected to facilitate the purchase of an additional 120,000 new homes. The mortgage guarantee variant to Help to Buy remains unchanged and will end on 31 December 2016;
  • A consultation is to be held regarding the design of a “Right to Move” scheme for social tenants to increase mobility for work related reasons;
  • A “Right to Build” scheme giving custom builders a right to a plot from a council is to be created, along with a £150 million repayable fund to help provide up to 10,000 serviced plots for custom build.

 

As mentioned in previous Budgets, the Government will continue with the simplification of the planning system, including a review of the General Permitted Development Order and a consultation on specific Changes for Use measures, including greater flexibility for change to residential use.

 

 

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Chris Wilson

Chris Wilson

Partner

KPMG in the UK

 

0118 964 2238

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