{"id":3668,"date":"2016-11-23T00:00:19","date_gmt":"2016-11-23T00:00:19","guid":{"rendered":"https:\/\/blog.propertypartner.co\/?p=3668"},"modified":"2025-11-19T11:41:06","modified_gmt":"2025-11-19T11:41:06","slug":"the-autumn-statement-2016","status":"publish","type":"post","link":"https:\/\/www.londonhouseexchange.com\/blog\/the-autumn-statement-2016\/","title":{"rendered":"Autumn Statement 2016: A boost for Housing and Technology"},"content":{"rendered":"

Autumn Statement 2016: A boost for Housing and Technology<\/span><\/p>\n

For the housing market, and for new technology firms, the announcements in Philip Hammond\u2019s Autumn Statement are resoundingly positive. A clear focus on increasing productivity through investment in housing, infrastructure, and disruptive technologies shows that the government has recognised the greatest growth opportunities for our economy. Here is a breakdown of the facts most pertinent to investors with Property Partner:<\/p>\n

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Spend on housing to double<\/span><\/p>\n

The treasury has committed to more than double annual capital spending on housing. The previously announced \u00a33bn Home Building Fund, and additional \u00a32bn \u2018accelerated construction\u2019 fund (covered in our blog, here<\/a>) were referred to, but as the chancellor said – \u201cwe must go further.\u201d<\/p>\n

   \u2022  Improving housing infrastructure<\/span><\/p>\n

New investment opportunities will arise as value is unlocked in new parts of the country. Hammond announced a \u00a32.3bn local infrastructure fund \u201cto unlock land for housing\u201d and to \u201cdeliver infrastructure for up to 100,000 new homes in areas of high demand.\u201d This boost to infrastructure will reduce the burden on current hotspots, with improved transport links allowing increased mobility and quality of life for workers.<\/p>\n

   \u2022  Support for affordable housing<\/span><\/p>\n

Hammond announced an additional \u00a31.4bn to deliver 40,000 affordable homes by 2020\/21, across a \u2018wider range of housing\u2019. This shows a sage commitment to service rental accommodation as well as homeownership. Providing higher quality, affordable rental stock is essential as more people rely on long-term renting. London will also receive \u00a33.15 billion as its share of national affordable housing funding to deliver over 90,000 much needed homes in the capital.<\/p>\n

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Infrastructure and innovation: A priority<\/span><\/p>\n

Perhaps the most significant announcement from the statement was the introduction of a new National Productivity Investment Fund of \u00a323bn aimed at \u201cinfrastructure and innovation\u201d.<\/p>\n

The planned investment in infrastructure will unlock growth in many new areas of the country and will help reduce regional inequality. The Chancellor announced additional plans to support growth in key regional areas such as the \u2018Northern Powerhouse\u2019 and \u2018Midlands Engine\u2019, as well as London and the South East. Property Partner recognises the opportunities presented by the North and Midlands, and has already made an active effort to increase our exposure in these areas, while continuing to pursue opportunities in London and the South East. This has given our investors the ability to achieve a regionally balanced portfolio.<\/p>\n

Within the \u2018innovation\u2019 category, Hammond cited science and technology in particular. Firms like Property Partner are to be given preferential support for the value that they bring to the UK economy in terms of improving services, and boosting economic growth. \u00a3400m will be injected into Venture Capital enterprises through the British Business Bank, unlocking \u00a31 billion of new finance to help new technology firms grow. This support will increase innovation, help economic growth and continue to attract international talent.<\/p>\n

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Fairer for tenants: The ban on letting agent fees<\/span><\/p>\n

The Chancellor has announced a ban on the fees that many tenants are charged by letting agents. At Property Partner, we welcome changes that increase fairness for tenants. We only hire agents who charge fair fees, so any impact will be extremely minimal and can be factored into negotiations with agents. Dividends for our investors will not be impacted, and we will not be charging our tenants higher rent as a result of this change.<\/p>\n

More importantly, the government\u2019s commitment to increasing housing supply will take away the unfair advantages that some letting agents have chosen to exploit.<\/p>\n

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A positive step forward<\/span><\/p>\n

We welcome the government\u2019s decision to address some of the greatest challenges faced by our economy today, and to embrace some of the greatest opportunities. Their support for housing and innovation is well placed, and we look to the future with confidence.<\/p>\n

 
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