Good news for the housing industry as Osborne announces investment of almost £7bn in housebuilding and is set to deliver 400,000 ‘affordable homes’ in England to put the crisis of home ownership as priority although he plans to cut £20bn from spending and £12bn from welfare.
The chancellor has revealed the following spending;
Osborne has also revealed a dedicated Help to Buy Scheme in London. Currently, a buyer only needs a 5% deposit and the Government will give a 20% loan, based on the property's value, so buyers only need a 75% loan-to-value mortgage. Whereas the new scheme will mean the buyer will only need a 55% loan-to-value mortgage as the Government will give a 40% loan. more details to follow in 2016.
On top of this, an extra 3% stamp duty is being added to the purchase of additional properties such as buy-to-lets and second homes in an attempt to protect first time buyers in the housing market.