What does the UK Housing White Paper mean for investors?
On Tuesday (7 February), Secretary of State for Communities and Local Government Sajid Javid delivered the highly anticipated Housing White Paper – a strategic framework aimed at ensuring the nation’s property supply is able to meet market demand.
With at least 225,000 new houses needing to be added to the market each year to meet buyer demand, the Government has introduced a raft of new reforms to ensure England no longer lags behind Europe when it comes to home completions. The key points from the White Paper include:
- Developers to start building within two years of securing planning permission
- A £3 billion fund to help small builders deliver more homes
- New incentives for build-to-let
- Maintaining protections for the green belt
The Government’s commitment to affordable housing through the construction of new properties is a welcome development. However, the White Paper has been criticised for overlooking the next generation of investors seeking to enter the property market.
While the construction of new-build houses across the country presents some exciting investment opportunities, it is important that the Government can ensure investors are able to realise them. This includes encouraging a lending market that is in a position to meet the changing demands of investors.
Our recent report – Gazumped Britain: UK Property Buyers Pipped to the Post – revealed that although Britain’s real estate market is booming, investors are not able to capitalise on available opportunities because of the highly competitive nature of the market, with delays in accessing finance cited as one of the main reasons why. Taking into account the full range of property opportunities across the UK, it is important that investors also have access to a lending system that is able to meet the demands of a robust, rapidly-moving real estate market.
The findings of our Gazumped Britain report featured in a wide range of international, national and trade publications, including The Independent, Yahoo! Finance, Mortgage Introducer, What Mortgage and Property Wire. Click here to read the report’s findings for yourself.
Over the coming weeks, MFS will be developing an online infographic profiling the leading property hotspots across the nation. This interactive piece of content will serve as a useful reference point for investors and developers interested in the latest market trends. In the meantime, be sure to have a look at some of our recent reports to ensure you are aware of the leading industry issues.