With Chancellor Rishi Sunak’s second budget of the year expected at 12.30pm this Wednesday (27 October 2021), we wait with baited breath for the measures impacting the UK housing sector to be confirmed.

As the economy begins to recover from COVID-19, we are likely to see more support offered by the Government to those that need it, accompanied by borrowing forecasts and tax changes. But where will this leave the housing sector? 

What we expect to be included 

Tax changes 

It is possible that tax changes will be made as the Government seeks to manage the cost of COVID-19. However, we also know that the Government is aiming to “level up” the nation (for example, through an anticipated rise in the minimum wage). 

Green credentials 

We are hoping for more details of the Government’s carbon reduction targets, and how these are expected to be achieved. The Government has already trailed £9 million spending on urban “pocket parks”—100 or so small green spaces that will be located in urban areas—which is an expansion of an existing programme to transform neglected areas into green community space. 

New homes 

Early indications suggest that the Government will announce £2 billion to provide new homes on brownfield sites, which they believe will equate to 160,000 homes. 

Planning overhaul 

We are expecting planning changes, including £65 million to be spent on software to “digitally transform” the planning process. 175 local authorities will be involved in the initial phase. 

What might be left out 

At the moment, there do not appear to be significant plans to increase the number of affordable units being provided. But watch this space... Two days is a long time in politics!

Summary

Economic recovery will be key in this budget, but we know that the housing sector remains a priority for this Government as it seeks to “level up” across the country. The changes that have been alluded to so far focus on green credentials and planning processes, but we’re watching carefully for any further developments.

We’ll be producing live coverage on the Budget on our Twitter feed (follow us here) and releasing in-depth insights into what the announcements mean for the housing sector (subscribe here), so keep an eye out for our updates.

How Capsticks can help

Capsticks’ housing team provides a truly full-service to over 200 registered providers, with particular expertise in development, corporate and securitisation, housing leasehold and asset management. If you have any queries around what's discussed in this article or the Budget itself and the impact on your organisation, please speak to Susie Rogers, to find out more about how Capsticks can help.