Chancellor George Osborne is determined to avoid the mistakes of the last decade and ‘keep Britain moving’.
At the heart of his housing policy announced in the Autumn Statement is building more homes.
He said: “Some of the most important infrastructure for British families is housing and we have to confront this simple truth: if we want more people to own a home, we have to build more homes.”
He also announced £1bn of loans to unblock large housing developments on sites around the country and confirmed that lenders Aldermore and Virgin are set to join the Help to Buy Scheme. The Help to Buy Scheme was introduced earlier this year to help those with a small deposit to buy a home.
“I can announce today that Aldermore and Virgin, two challenger banks, expect to join the scheme this month. Help to aspiring families and building more homes – that’s what we stand for,” said Osborne.
But he added a word of caution, saying: “We must also avoid the mistakes of the last decade.
“We want a responsible recovery….We want a functioning, stable housing market.”
Other items included:
- Regenerating some of the most run down urban housing estates
- Councils to sell off the most expensive social housing, so they can house many more families for the same money
- Giving working people in social housing a priority right to move if they need to for a job
- Introduction of Capital Gains Tax on future gains made by non residents who sell residential property in the UK
Liam Bailey, of estate agents Knight Frank, said: “Tax is not the primary driver for the majority of international buyers of residential property in London. We anticipate that the removal of the CGT exemption for non-resident purchasers will have only a marginal impact on demand and pricing.”
Banks and building societies are being urged to reconsider their lending criteria for those in later life after the Chancellor announced changes to the state pension.
Brokers said lenders would need to ‘rethink their lending policies’ after George Osborne announced an increase in the state pension age.
Andrew Montlake, of mortgage brokers Coreco, exclusively told Zoopla: “As it becomes more evident that people will be working until they are older, with a retirement age of 70 no doubt becoming a norm, lenders do need to rethink their lending policies to accommodate this change.
“While there is much regulatory clamour around lending into retirement, the last thing many borrowers need is to be constrained by anachronistic lending policies that do not take into account changes in working practices.”
Lenders have traditionally capped the age at which they will lend to borrowers to a retirement age of around 65 years old. It can be higher or lower than this depending on the individual lender.
The Chancellor said in the Autumn statement that anyone born after 1990 will have to work for five years longer than those today before they can claim the state pension.
It means anyone currently in their 40s or younger will be affected by the move.
Plans to raise the pension age to 67 by 2028 will not change, but under the new rules the age is expected to reach 68 by the mid 2030s and 69 by the 2040s – much earlier than had previously been predicted.
At present, a man can start to claim his state pension from the age of 65 and a woman from 61 and nine months.
How to avoid burst pipes and failing heating systems in winter via Charlie Mullins of Pimlico Plumbers
Ahead of the expected cold spell during the winter months, ‘Plumber to the stars’ Charlie Mullins gives his expert advice to home owners on how to protect their property from winter conditions.
The Pimlico Plumbers founder said: “The winter weather can be very troublesome for homeowners who have not taken the necessary steps to prepare their house for the cold. By following these simple steps homeowners will significantly reduce the chance of encountering problems such as burst pipes and heating systems that cannot handle the adverse conditions.
“Not only will homeowners prevent problems but they will also reduce the amount they spend on heating their home in the long run.”
Charlie’s top tips:
1. In these freezing conditions it is crucial to keep your water moving so that pipes don’t freeze up – running your taps every now and then will help to prevent freezing and could save you a hefty plumbers’ bill.
2. Another great tip that people just don’t think of is keeping your loft hatch open a few inches to let warm air into your loft or roof cavity where your water pipes are, which will help no end in keeping water from freezing.
3. Keeping your heating turned on low when you are out or even when you’re away for a few days or longer. It doesn’t have to be high at all, just 5 or 6 degrees C will do it, but once again if water stays above zero it won’t freeze.
4. Make sure your lagging (thermal insulation) is up to scratch: people think it’s too late to do anything about this now but the forecast says there’s at least a couple of weeks of this weather to come, and his will help keep things warm and save real money.
5. Another winner is to have your loft and cavity walls properly insulated – hot air rises so it makes sense to keep the heat inside the building – remember you paid for it so don’t let it get outside as it puts more strain on your boiler and uses up more expensive gas replacing the heat.
6. Regular servicing of your boiler and radiators: since the recession we have noticed an increase in emergency call outs as people try to save a bit of cash by cutting down on things they think are not important. But it makes so much more sense to spend a little getting your heating system up to scratch. Aside from the safely aspect, It will last longer and will perform when you most need it to.
7. Have a timer installed on your heating system: this will save you money by not running things at full temperature all the time, but at the same time give your house a little boost every now and then to keep things from getting too cold and giving you the sort of expensive problems you can experience when your pipes freeze up.
8. Having thermostatic radiator valves fitted to all your radiators to control individual room temperatures will give you the ability to switch heat off completely in certain parts of your house, thus reducing your fuel costs further, while keeping things roaring where they are needed.