Commenting on the Spring Statement, Adrian Plant, Director of SOWN said:
We were not expecting a raft of new housing measures today, so the absence of fresh support for first-time buyers is no surprise.
However, today’s announcement was significant because for the first time, the government has acknowledged the ‘delivery dip’ – the fact that housing delivery is set to go backwards before it goes forwards.
The OBR now expects net additions to the UK housing stock to fall to around 220,000 in 2026-27 (lower than in the early 2020s) before recovering to just over 305,000 by 2030-31. Not only is it an admission that annual housing targets cannot be met, but it is a clear reminder that planning reform is not a quick fix - the hard work of turning policy into local plans, permissions and completions takes time.
Ministers have been frank that higher supply should flatten or reduce house prices. Now that the government has admitted that, in the short term, housing delivery will continue to fall, it is clear that house prices will rise – to the detriment of first time buyers.
So this reinforces the case for credible routes into ownership while we wait for volumes to recover, something that the government has so far failed to commit to.
Shared Ownership was designed to provide a bridge between renting and full ownership. But the eligibility caps - £80,000 outside London and £90,000 in London - have not kept pace with regional price realities, leaving more households stranded in the ‘missing middle’. Furthermore, supply has continually failed to meet demand.
If the Government wants planning reform to translate into delivery, it must address affordability and provide more targeted support for first time buyers.
Shared Ownership deserves the same level of government-assisted marketing as benefited the now defunct Help to Buy scheme. A new marketing and communications strategy would help to raise awareness and provide guidance on the practicalities and advantages of shared ownership. People in Shared Ownership would be able to benefit from the enhanced stability, security and long-term financial growth that this can provide.
Now more than ever, the government must do more to support first time buyers through supporting Shared Ownership.
