The majority of property professionals believe that Chancellor George Osborne’s plans for the housing market, as announced in the Autumn Statement, won’t work, with 57% stating that they will have a negative effect on the industry.
Property Professionals Believe Osborne’s Plans Won’t Work
Experts believe that consequences could be: lack of confidence in the market; unachievable house building targets; and limiting the supply of rental property.
These findings are the result of a survey of 570 property professionals by specialist recruiter Deverell Smith.
Even most of the 21% that believe the measures will have an overall positive impact on the sector think that to create an affordable market means that other areas will take a hit.
Just under two thirds (66%) of respondents do not believe that the house building targets are achievable, while 58% think the extra 3% Stamp Duty charge for buy-to-let investors and second home buyers will restrict the supply of rental homes.
The biggest concern for the majority of experts is the long-term effect on private, smaller landlords and whether they will be forced out of the market, leading to more institutional landlords that offer higher prices to tenants.
Many professionals feel that the tax increase will have a positive effect on existing landlords, as a limited supply will increase rents. However, this will not benefit the many private renters in the country.
The firm’s Andrew Deverell-Smith comments: “With property playing such a vital role in our economic growth and the welfare of our society, it is understandable that it is a big focus in George Osborne’s latest plans.
“These opinions are from leading property industry experts who know and understand the market, and this highlights that there is a gap between expert industry estimations and Government strategy.”
He continues: “There are so many facets to the industry that a change in one area will always impact another. There is clearly no silver bullet.
“As a property recruiter, we know first hand not only of the shortage in construction workers, but the project managers, planning and surveyors required to deliver these ambitious housing programmes.”1