Chancellor Rachel Reeves may be hamstrung financially in today’s Spring Statement, but she could still tweak the market with a fresh equity loan scheme, an empty homes scheme, and by reforming the evictions process.
That is according to Jeremy Leaf, north London estate agent and a former RICS residential chairman.
Reeves’ options are seen as limited given the furore over the previous increase in National Insurance for businesses in the Autumn Budget, as well as previous commitments not to increase income tax, national insurance or VAT.
Leaf said: “Equity loans with salary caps complimented by more relaxed borrowing for genuine first-time buyers would certainly make a difference.”
But he added: “Just as we’re saying cheerio to Help to Buy, a new version is unlikely anytime soon as it became to be regarded more as Help to Sell and a boost for housebuilders.”
Leaf recommended for the Chancellor to focus on bringing more empty homes back into use.
He said: “More efficient use of existing resources such as reducing record numbers of empty properties as well as better utilising unused and under-used land and buildings in anticipation of substantial population growth is vital.”
During the period of the Liberal-Conservative government from 2010 to 2015 there was an Empty Homes Programme designed to create fresh supply form empty homes.
Leaf also recommended a review into stamp duty, potentially altering the distribution of the tax to encourage greater activity at lower price points.
Meanwhile he suggested speeding up conveyancing by imposing an enforceable time limit on those contributing information to the process such as service charges, especially for leasehold properties.
Finally Leaf noted that Reeves could focus on reforming the evictions process.
He added: “Reducing the time to legitimately evict disruptive tenants prior to the introduction of the Renters Rights Bill later this year would help to maintain the supply of accommodation but would be equally welcome by tenants just wanting a quieter life.
“Better enforcement of other short-let accommodation would level the playing field with longer-term lettings and represent another way of reducing the landlord exodus into that sector in view of its lack of regulation.
“It shouldn’t be forgotten either that many landlords are doing the job of local authorities unable or unwilling to provide affordable homes with up to 25%, or over 1 million, of private rented sector tenants paying housing benefit.”