Policy Response: The Impact of New

Housing Measures on Development

The Impact of New Housing Measures on Development
The Impact of New Housing Measures on Development

4 February 2016, by Susan Emmett

Markets served by Help to Buy, Starter Homes and shared ownership are likely to overlap

Housing delivery: Help to Buy, Starter Homes and shared ownership will largely serve the same parts of the market. As a result of the overlap, there is a risk that the schemes may not deliver additional homes.

Affordable Housing: these schemes are unlikely to help low income households. The shift in policy drive from Affordable Rent to one of the other tenures, and in particular the classification of Starter Homes as a form of Affordable Housing, is likely to leave a gap in housing provision for those on lower incomes.

 

Starter Homes: there is a risk that the Starter Homes policy could distort the new homes sales market, without significantly increasing the number of new homes delivered overall.

Help to Buy: increasing the size of the equity loan in London will open up more parts of the market to working middle income households.

Rental demand: the private rented sector will still expand by more than one million households over the next five years, despite the drive to boost homeownership. We expect to see opportunities for large scale investors to provide rental stock and enable developers to de-risk schemes through forward-funding structures.

Land values: uncertainty surrounding the details of these schemes, including future Affordable Housing requirements alongside Starter Homes, makes the appraisal of land values a challenge.

Articles from The Impact of New Housing Measures on Development

Effects Of Combined Measures

04 February 2016

Effects Of Combined Measures

We analyse the implications of Starter Homes, the extension of Help to Buy and shared ownership and changes affecting buy-to-let investors

New Homes For Sale

04 February 2016

New Homes For Sale

The Starter Homes scheme and the expansion of Help to Buy may help some first time buyers but could distort the market

The Effect On Land Value

04 February 2016

The Effect On Land Value

Uncertainty surrounding the details on new policies to boost homeownership makes the appraisal of land values a challenge

 
 

Receive the latest research

Key contacts

Susan Emmett

Susan Emmett

Director
Residential Research

Savills Margaret Street

+44 (0) 203 107 5460

 

Chris Buckle

Chris Buckle

Director
Residential Research

Savills Margaret Street

+44 (0) 207 016 3881

 

Jim Ward

Jim Ward

Director
Residential Research and Consultancy

Savills Margaret Street

+44 (0) 20 7409 8841