Chancellor Rachel Reeves reveals substantial investments geared towards housing and development.
- £5bn-plus allocated to bolster construction and increase affordable homes programme.
- Capital gains tax adjustments aim to align rates, drawing criticism for their impact on investors.
- Stamp Duty increase targets second homes, aiming to boost opportunities for first-time buyers.
- Efforts include significant plans for renovation and increased planning officers.
Chancellor Rachel Reeves has announced a significant allocation of funds exceeding £5 billion to invigorate the construction sector and augment the affordable homes programme. This initiative aims to create thousands of homes, thus addressing the persistent housing shortage in the UK.
Significant modifications to capital gains tax have been introduced. The adjustment raises the lower rate from 10% to 18% and the higher rate from 20% to 24%, while keeping residential property rates unchanged. This measure is designed to increase revenue while maintaining investment incentives; however, it has drawn criticism for potentially adding financial pressure on investors.
An increase in the Stamp Duty Land Tax surcharge for additional properties has been set at two percentage points, now reaching 5%. The Chancellor asserts that this measure seeks to discourage the purchase of extra properties, thereby benefitting first-time buyers and home movers. This move reflects the government’s intent to create more opportunities for those seeking their initial home.
Included in the budget is a strategic plan to renovate existing sites, such as the Liverpool central docks, with the ambition to deliver 2,000 new homes. The government is also providing financial support to develop housing in areas like Cambridge, reflecting a commitment to enhance the housing supply across regions.
The budget confirms a £47 million initiative to support the delivery of up to 28,000 homes affected by nutrient neutrality issues. Additionally, a £500 million boost aims to construct up to 5,000 affordable homes. Such initiatives are part of the government’s broader plan to ensure the UK housing market becomes more accessible and sustainable.
Chancellor Reeves’s budget demonstrates a comprehensive strategy aimed at transforming and energising the UK’s housing sector.
