Budget 2024 reaction round-up: disappointment over lack of measures to boost supply

While some elements of Jeremy Hunt’s Budget were welcomed, the overall sense from the housing sector was of an opportunity to boost supply being missed. 

Here is a round-up of what key sector figures said in response.

 

Gavin Smart, chief executive, Chartered Institute of Housing, said: “From a housing perspective, this was a disappointing budget. Given the significant housing crisis that we’re currently navigating there was no mention of the urgent action needed to address this.

“In our pre-Budget submission we called for urgent action to boost social housing supply, invest in homelessness prevention and decarbonise the residential sector. These calls remain and we’ll continue to push the government to go further. We need a sustainable housing system to support a vibrant economy.”

Patrick Franco, chief executive of Notting Hill Genesis, said: “We hoped for greater clarity for providers of affordable housing around funding and rent certainty, as well as much-needed support for those struggling to make ends meet. Although we are pleased to see a six-month extension to the household support fund, this is only a temporary fix. It is disappointing that the Chancellor did not announce any long-term measures to address the housing crisis across the UK.

“Stamp duty and capital gains tax reforms will help those who can afford to get on the housing ladder, but leave a large proportion of the population behind. This puts further pressure on the social housing sector to bridge the gap and does not get to the root of the housing problem we face in the UK.”

Spokesperson, Wavensmere Homes, said: “We are frustrated with the lack of bold action from the Chancellor. Now this key fiscal event has been delivered, the market is already looking ahead to the next three Bank of England Monetary Policy Committee meetings, in hope the punishing rate of 5.25% will drop before the summer. This could be the only fiscal change that could do the government a favour ahead of the date of the General Election being declared.”

Rico Wojtulewicz, head of housing and market Insight at the National Federation of Builders, said: “It’s hard to not welcome long overdue grid strategies and some announcements such as digitising and integrating AI into planning, bringing forward nutrient neutrality investment, and enabling more social housing are hugely welcomed.

“However, it’s all a little too late. Planning digitisation has been a key plank of our lobbying for almost a decade. Nutrient neutrality investment is the Government’s response to dropping solutions that they proposed. In addition, the increase in social and affordable housing funding feels like a stats fudge.”

Kate Henderson, chief executive of National Housing Federation, said: “We’re disappointed that this year’s budget was not used as an opportunity to address the housing emergency and chronic shortage of affordable homes across the country.

“The measures announced by the Chancellor to support families on the lowest incomes, including the extension of the Household Support Fund are welcome and will provide some relief for those who are struggling with the rising cost of living. However, with child homelessness at record levels and 1 in 6 children growing up in overcrowded homes with little space or privacy, urgent and meaningful action on housing is needed.

Geeta Nanda, chief executive of Metropolitan Thames Valley Housing, said: “Many of our residents will welcome the extension of the Household Support Fund and of the Universal Credit Debit repayments.

“It was also good to see some significant investment in Barking and Dagenham, Canary Wharf and Leeds. However, the budget did little to expand supply more broadly for millions of people for whom a safe, secure, and affordable home remains out of reach. With the government’s own figures showing over 142,000 children in temporary accommodation, depriving them of the stability and security they need as they begin their lives, the housing crisis is now an emergency.

As the general election approaches, our political parties must recognise the scale of this emergency and to commit to a long-term plan for housing, backed by desperately needed investment in supply, to help give everyone the chance of safe, secure and affordable home and to live well. “

Spokesperson, The Housing Forum, said: “The Housing Forum welcomes the £240m announced to unlock housing in Barking and Canary Wharf, and also the second round of funding to address the nutrient neutrality issue blocking new homes. It was disappointing not to see any other significant new funding announced for housing in the Budget.”

Justin Young, chief executive of Royal Institution of Chartered Surveyors, said: While choices have to be made in the current economic backdrop, property related measures stimulate the economy and support growth and net zero ambitions. The extension of long term plans for towns in the budget today will help some areas, and we support local decision makers being given more control over their areas, as per the North East Trailblazer Deal.

We look forward to hearing more on specifics such as placemaking and supply side measures, alongside supporting our high streets and net zero targets, ahead of any election.”

Mark Washer, chief Executive of Sovereign Network Group, said: “This is clearly a pre-election budget, with accordingly short-term prioritisation. Nonetheless action to address the human and financial cost of the now 142,000 children living in temporary accommodation is a massive missed opportunity. The negative impacts of this will be felt for years to come.