Hammond has followed global shift towards looser fiscal policy…
The Autumn Statement triggered a strong reaction from many, with the housebuilding measures gaining most attention…
The overriding themes of the Autumn Statement were the well-signposted plans to boost investment in infrastructure and innovation, as well as house building.
In this sense, the UK Government is merely the latest in the developed world to embark on a recalibration of economic management towards greater emphasis on fiscal stimulus, after years of allowing central banks to do the heavy lifting through ultra-accommodative monetary policy and money printing that have now reached their limits.
But the scale of the UK’s plans confirmed by the chancellor is modest compared to what we may see from the new administration in the US. The cautious and pragmatic Philip Hammond is certainly not a clone of Donald Trump – but the global shift towards looser fiscal policy, from Japan to the US, is undeniable.
Jason Hollands, Tilney Bestinvest
…but he needed to do something different to make homes cheaper…
With average house prices more than nine times median incomes in 39 per cent of local authorities, we need to do something different to enable those who can to reach their goal of homeownership.
While the additional 40,000 new affordable homes will help, they won’t be enough to counter this trend. We are looking forward to the Government’s housing white paper and the details of how these new initiatives will be delivered.
We also hope that Rent to Buy models will be recognised as a mainstream housing product, both as a starter home and as truly affordable housing, alongside traditional options.
This would enable local authorities to boost their supply of affordable homes to rent while providing a complementary housing solution for those who aspire to own their own home, and without any increase in government spending.
Richard Connolly, Rentplus
…such as lowering stamp duty to help out second-time movers
The chancellor has missed an opportunity to reduce stamp duty and help homemovers.
The housing market is currently stalling on second-time movers and I expected a more exciting proposal to help; at the very least a stamp duty holiday. In truth, it was a rather bland statement.
But as the Autumn Statement has been abolished, perhaps those in the housing market can expect a more exciting Budget.
Karen Hedges, First Complete