Mixed response to Reeves’ announcements
The housing industry has given a lukewarm response to the Autumn Budget, whilst expressing frustration over a lack of demand-side measures to stimulate the sector.
Reeves announced that the government would not introduce a single rate for Landfill Tax “at this time”, allaying fears of another regulatory cost increase.
And the government also announced extra funding to recruit more planners, to “supercharge the government’s commitment to build 1.5 million homes”.
But there was little else to applaud, with some developers expressing concern over the introduction of a “mansion tax”, and Neil Jefferson – Chief Executive of the Home Builders Federation – saying: “Whilst the government’s planning reforms have been very positive, ministers need to now acknowledge the worsening viability of new housing schemes as a result of new taxes, levies and policy costs.”
A wider set of responses can be found on Housebuilder.
House prices dip in southern England
Zoopla published its house price index for October this week, noting that “with the Budget uncertainty now lifted, buyers and sellers can return to making decisions about their next move”.
The index found that the average house price in the UK is £270,000 – a rise of 1.3% over the past year.
However, the firm’s research also found that annual house price growth across the south of England has begun to edge down for the first time in 18 months, whilst most other regions continue to experience growth.
Meanwhile, Lloyds has announced that first-time buyer mortgage affordability has improved over the past year.
The lender’s affordability review has found that a typical first-time buyer home costs 5.9 times average earnings – the lowest ration since 2015.
Construction employment lowest in 100 years
Research by the Centre for Social Justice (CSJ) has found that the construction workforce has fallen to its lowest proportion of total UK employment in over 100 years.
The report – Skills to Build – seeks to address the industry’s challenges around workforce shortages, and highlights obstacles such as an ageing workforce, the effects of the pandemic, and Brexit.
The CSJ calls for the streamlining of planning processes, automatic planning approval where developments meet design code, and a wider access to levy funds.
Developer and supply chain updates
National Timber Group has collapsed into administration after prolonged weak trading and cashflow pressures, with 561 jobs lost as 13 branches were shut and several production facilities mothballed.
Administrators from Alvarez & Marsal are keeping remaining depots trading while urgently seeking a buyer for the £300m-turnover group, which employs 1,150 people across 47 sites.
The failure of the Sheffield-based business, built around the Arnold Laver brand, raises concerns over further supply-chain disruption heading into winter.
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