TSI
New housing commission launched in UK
A new Housing Commission has been launched in the UK to explore new routes to house building so councils can enable the construction of more desperately needed homes. Councils built nine times more homes between 2010 and 2015 than between 2000 and 2005 and are desperate to dramatically increase the availability of new homes in their local areas, according to the Local Government Association. The LGA said this is vital to building the 230,000 new homes the country needs each year as private developers have not built more than 150,000 homes a year for more than three decades. The Housing Commission will also explore the importance of effective housing in boosting jobs and growth, helping meeting needs of an ageing population, saving social care and the NHS money, and helping people into work. It will look at new ways that councils can enable investment in new homes, the role of councils in shaping homes within prosperous places and communities, the role of housing in supporting tenants to find and progress in sustained employment and the role of housing in adapting to an ageing population and preventing onward costs onto social care and health services. Evidence is sought on the key issues for communities, partners and councils, on good practice that has successfully addressed those issues, and what is needed to build on those successes. Councils, partners, organisations and individuals are invited to contribute their issues, evidence, and examples of effective housing and ideas to the Commission's Advisory Panel, made up of experts and academics. The Commission will take a medium term view incorporating current housing reforms but will look beyond them in making the case for councils to be able to deliver the homes our communities and places need. Findings will be brought together in a report in Spring 2016 and presented at the LGA Annual Conference in June 2016. ‘We're working with government to ensure housing and planning reforms support council efforts to build more homes and the Housing Commission we are launching today will investigate how the government and councils can help deliver houses to solve our housing shortage,’ said Peter Box, LGA housing spokesman. ‘Councils must be able to play a lead role in building the homes we desperately need, and building the homes in a way that create prosperous places and growth, help people into work and positively adapt to an ageing population,’ he explained. ‘This is the best way to meet local and central government ambitions for our communities, to reduce waiting lists and housing benefit, keep rents low and help more people live long and happy lives,’ he added. Continue reading
UK taxman cracks down on property tax avoidance schemes
The UK taxman has collected £301.8 million in unpaid property tax due to what is described as an aggressive clampdown on stamp duty avoidance. HMRC’s new Counter Avoidance Directorate collected the amount in the last year as part of a policy to crackdown on Stamp Duty and Land Tax (SDLT) avoidance schemes. According to private client law firm Collyer Bristow, the data which was provided to them by HMRC, shows that the policy has been a success. The Counter Avoidance Directorate was first established in April 2014 in order to bring together HMRC’s work on marketed tax avoidance schemes and policy work on avoidance. ‘The Government’s aggressive clamp down on SDLT avoidance schemes over the last few years is now bearing fruit. The high returns from compliance investigations mean that this area is likely to remain under the spotlight for some time to come,’ said James Badcock, partner at Collyer Bristow. He pointed out that house prices have soared in recent years- particularly in London and the South East- which means many taxpayers face a substantial SDLT bill on their purchase. ‘Avoidance schemes were being used to reduce SDLT on what for London are relatively modest properties in the £1 million region as well as very high value properties. As well as the Government closing down schemes with legislation, HMRC has tackled previous planning through the disclosure regime, better resourced investigations and litigation,’ he explained. He also pointed out that whilst in many cases there is likely to be a legal justification for transactions which allowed an SDLT liability to be avoided, HMRC can be expected to challenge the schemes and anyone who is concerned at all should now seek advice. ‘Individuals who decided to engage in the planning because it seemed so easy at the time may not have the stomach for the fight once faced with an HMRC challenge This can be expensive but another critical factor is a climate in which engaging in abusive tax avoidance can cause reputational damage to those in the public eye,’ he added. Collyer Bristow highlights that changes to the rates of SDLT were introduced in last year’s Autumn Statement. The new rules included the introduction of a graduated rate moving away from the sharp increases resulting from a property just exceeding a threshold which could seem unreasonable. The change means anyone purchasing a house for less than £937,000 will see SDLT cut or remain the same whilst those buying the most expensive properties are likely to face a higher bill. Continue reading
New tax free savings vehicles launched for first time UK buyers
Would be first time buyers in the UK can now take advantage of a new financial product that allows them to save for a deposit on a home tax free. The government’s Help to Buy ISA launched today and means that people can save £200 each month, up to a maximum of £12,000, and the government will provide a 25% bonus on the interest and contributions, up to a maximum of £3,000, when the saver purchases a property. According to Mark Hayward, managing director of the National Association of Estate Agents (NAEA), it will provide a boost to first time buyers hoping to make the climb onto the property ladder. ‘It seems as though first time buyers are at the top of the government’s agenda following the further helpful initiatives announced during last week’s Autumn Statement which means that we might finally begin to see first time buyers cutting through the market. But he pointed out that although the Help to Buy ISA is a starting point for first time buyers and it will help them on the way to raising a deposit, there’s another major reason why they are feeling pushed out of the market and that is not enough homes to buy. ‘This is the lack of housing, specifically affordable housing available to all house buyers whether that be first time buyers, all the way to last time buyers. In order to help first time buyers find their feet in the market in the long term, the issue of supply needs to be addressed,’ explained Hayward. ‘Chancellor George Osborne’s announcement that he’ll be building 200,000 new starter homes is a good place to start, but until the wheels are put into motion, we just won’t see a substantial change for first time buyers,’ he added. Dave Bexon, Group sales and marketing director for Redrow Homes, welcomed the launch as raising a deposit is regularly cited as one of the biggest barriers to home ownership for young people. ‘This pioneering scheme should encourage a generation of renters to save for a down payment on a home, with the knowledge that the hard earned money they set aside will be topped up with a contribution from the Government,’ he said. ‘We're confident this assistance will encourage more would be home owners into the market which, longer term, is also key to helping to stimulate movement at all levels of the market,’ he added. He also pointed out that the existing Help to Buy equity loans continue to provide a valuable boost to purchasers of new build homes, enabling people to buy with just a 5% deposit with an equity loan of 20% from the Government, which is interest free for five years. Mortgage advisor Andrew Mannion, of RSC New Homes, one of several mortgage experts who offer advice to Redrow purchasers, also welcomed the introduction. ‘We feel that this scheme will be useful as it will boost a customer's deposit which,… Continue reading
