Rachel Reeves, Chancellor of the Exchequer, delivered the hotly anticipated 2024 Autumn Budget on 30th October: The speech not only outlined the economy’s health, but the Labour government’s plans to reset the trajectory and lay out plans for housebuilding during the course of the parliament.
The headlines for the industry
The biggest takeaway was the announcement that the government will invest more than £5bn between now and 2026 to deliver on its plans for housing, along with an additional £500m for the Affordable Homes Programme. There was also a commitment of £3bn of additional support for SMEs and the Build-to-Rent sector to support the private housing market.
Planning Reform
As part of the investment plans, reform of the planning system was also highlighted as a key component of the Government hitting their target to deliver 1.5m new homes. £50m of new spending was announced to expedite the planning process, and large sites that are currently ‘stuck in the system’ will be accelerated.
Rafts of funding for previously announced schemes were also confirmed, with hundreds of millions announced for projects around the country, including 2,000 new homes at Liverpool Central Docks.
The change to the fiscal rules
The Chancellor also announced changes to the fiscal rules and plans for investment of £100bn on capital projects over the next five years, which could also benefit the housebuilding industry along with transport connections and aims to provide financial Certainty.
”"The 2024 Autumn Budget’s housing focus signifies a robust commitment to addressing the UK’s housing challenges. Reeves’s approach, blending increased funding, industry incentives, and local authority empowerment, shows promise. However, the devil is in the detail and the government will now need to act quickly if they’re to build momentum, breathe confidence into the market and deliver real change off the back of some grand promises."
Jack BristowJ3 Advisory
Key figures within the housebuilding industry welcomed the measures taken in the budget, along with the commitment to social housing and the Build to Rent sector. Many see today’s announcement as a firm indication that the Government is serious about addressing the housebuilding industry and the need to build more homes.
J3 Advisory remain committed to understanding the needs of the housebuilding industry, and are proactive in helping to educate stakeholders in how structural warranties play a key part in underpinning the housebuilding industry.
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