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How the 2014 Budget impacts house building

The Chancellor has announced a range of measures to stimulate the house-building industry, aimed at supporting the delivery of over 200,000 new homes. NHBC advises Government on a range of issues impacting the house-building industry, and this is an overview of the key measures that will affect your business - an initial analysis of the Budget. As further details emerge we will let you know how to take advantage of these initiatives.

Small Builders: £0.5bn funding for small house building firms

To support SME builder access to finance, the government will create a £500 million Builders Finance Fund, to support the delivery of 15,000 housing units by smaller builders.

Custom Build: £150m support for Right to Build schemes (relating to individuals building homes)

This is not just for `DIY' homes but also for people who want to contract a builder to construct the home of their dreams. The government will consult on creating a new `Right to Build', giving custom builders a right to a plot from councils, and a £150 million repayable fund to help provide up to 10,000 serviced plots for custom build.

Demand: Help to Buy (Part 1: equity loan scheme extended)

The Help to Buy: equity loan scheme is expected to help at least 74,000 households buy a new-build home by March 2016. To help a further 120,000 households purchase a home and to continue to support house building as the market improves, the government will extend the equity loan scheme to March 2020. This equates to £6bn extra funding available for the scheme. The Help to Buy: mortgage guarantee scheme will continue to support access to high loan to value mortgages until the scheme ends on 31 December 2016.

Reforming the planning system

The government will review the General Permitted Development Order to simplify and speed up the planning process for change of use. The approach is based on a three-tier system to decide the appropriate level of permission, using permitted development rights for small-scale changes, prior approval rights for development requiring consideration of specific issues, and planning permission for the largest scale development. The government will consult on specific change of use measures, including greater flexibilities for change to residential use, for example from warehouses and light industry structures, and allowing businesses greater flexibilities to expand facilities such as car parks and loading bays within existing boundaries, where there is little impact on local communities.

Garden City: The Government will create a new 'Garden City' Development Corporation to develop land in Ebbsfleet, Kent

The Government will support a new Garden City at Ebbsfleet. Ebbsfleet has capacity for up to 15,000 new homes, based on existing brownfield land. The government will form a dedicated Urban Development Corporation for the area, in consultation with local MPs, councils and residents, to drive forward the creation of Ebbsfleet Garden City, and will make up to £200 million of infrastructure funding available to kick start development. The government will also publish a prospectus by Easter 2014, setting out how local authorities could develop their own, locally-led proposals for bringing forward new garden cities.

Housing schemes: Regeneration schemes in Barking Riverside and the Brent Cross region

The Government will work with the Mayor of London and the Greater London Authority (GLA) to develop proposals for extending the Gospel Oak to Barking Line to Barking Riverside, and to ensure that any public investment unlocks the construction of up to 11,000 new homes. It will also work with the GLA and the London Borough of Barnet to look at proposals for the Brent Cross regeneration scheme, subject to value for money and affordability.

15% stamp duty for corporate owned house purchases of more that £500,000

The 15% rate of SDLT that applies to acquisitions of properties by corporate envelopes will also be applied to properties valued above £500,000 with effect from 20 March 2014.

NHBC is an independent expert authority on the housing industry. We advise and liaise with all parliamentarians and policy makers within the UK Government, Westminster Parliament, Welsh Assembly, Scottish Parliament, Northern Ireland Assembly, European Union and all civil servants, to help produce policies for the benefit of the industry and consumer.

Media contacts at NHBC

James Hall  on 01908 746 738

News Date: 20/03/14