Despite the Tory conference being plagued with problems from Ms May’s persistent cough to a prankster disrupting her keynote speech, a key announcement from the Tory conference has revealed an extra £2 billion will be allocated to help fund the building of more council and association homes.
The Government plans to boost funding for affordable homes by providing £9.1 billion, up by £2 billion, to the Affordable Homes Programme which housing associations and councils can bid for. This increase in funding will supply around 25,000 more homes at rents affordable for local people.
However, many have branded the additional £2 billion a ‘drop in the ocean’. It is widely known that the UK requires an additional 200,000 new homes to be built every year for five years so this funding increase will deliver just 12.5% of the target. Additionally, many have shed doubt on the practicality of the Government delivering 25,000 new homes, especially since the number of homes built for social rent has fallen from 40,000 in 2011-12 to 1,102 in 2016-17, a drop of over 97%.
Furthermore, Chancellor Philip Hammond has also announced an extra £10 billion to expand the Help to Buy scheme. The scheme, which was launched in 2013, enables buyers to secure a new build property with a 5% deposit and a maximum equity loan of up to 20% of the property’s value. This expansion of the scheme will reportedly allow an extra 135,000 first time buyers to purchase homes over the next four years.
Whilst many have welcomed the Government’s attempts to solve the under-supply of housing in the UK, it is unclear whether the latest measures will do much to help. The fact of the matter is, house prices have continued to rise on the back of an ongoing shortage of properties and solid growth in full-time employment (Halifax, 2017) therefore, unless the Government’s manages to build 1,000,000 new homes by 2020, property prices will continue to rise.
Savvy investors looking for an additional income or somewhere to build their retirement nest egg, can take advantage of this increase in property prices by taking a look at Edifice Invest’ wide range of Buy-To-Let properties. With off-plan discounts of up to 15% available and all management requirements taken care of, purchasing a Buy-To-Let property has never been easier. To speak to an advisor about our availability, fill out our contact form below and we will be in touch.