A former residential chairman of RICS has criticised the Chancellor Rishi Sunak’s lack of action in the Spring Statement over housing issues.
Jeremy Leaf, who is a north London estate agent, said: “While we welcome fuel duty and tax cuts which help the majority, it is disappointing that there wasn’t greater recognition of the need to address the huge shortage of affordable housing. Property prices continue to rise, mainly due to lack of new supply, and more affordable housing to buy or rent would help bring more balance to the housing market.
“We are pleased that the Chancellor didn’t further target landlords with more taxes and red tape. What is happening in the sales market is being mirrored in lettings, with a shortage of stock pushing up rents. It is important not to lose any more landlords, which would negatively impact supply and mean higher rents.
“We would have liked to see some resolution of the cladding crisis, again helping release more properties onto the market, as owners who wish to move can finally sell up. These are so often the more affordable properties, particularly flats, which appeal to first-time buyers.
“As we forecast, there was some focus on energy-saving materials, with VAT reduced to zero for the next five years for homeowners installing solar panels or heat pumps. While this will benefit a few homeowners with the means to install these in the first instance, there is no point in doing this unless there is sufficient consumer buy-in and confidence in the product, which isn’t there at the moment with regard to heat pumps. Consumers worry about the maintenance and servicing of these and there needs to be more confidence around their operation.”