Richard Threlfall, head of infrastructure, building and construction at KPMG, said of the scheme: “It’s a bold move, perhaps a desperate one, but one that will be undeniably welcome by the beleaguered construction industry.
“The government has finally recognised that housing might offer the fastest acting pain relief for our economic woes and, perhaps despairing of local authorities to be proactive in supporting new house building, has decided to focus stimulus on demand.
“By opening the scheme to all buyers of new-build houses up to £600,000 in value, the Chancellor has thrown the UK house building industry a new lifeline. Ultimately, the construction industry and all trades that support construction of new houses in the UK will benefit from the new scheme.”
James Pargeter, head of residential projects at Deloitte Real Estate, also seemed to approve. He said: “This package is a welcome boost to both the housebuilding industry and developing affordable housing providers as, by stimulating an increased level of demand certainty, it should allow housing supply to rise. Existing schemes with planning consent, but which lack current financial support, should have a better chance of being able to commence and to be built at a quicker rate as a result.”
Mr Threlfall was less excited by the extra money released for infrastructrue spending. “From an infrastructure perspective today’s Budget was disappointing," he said. "£3bn infrastructure investment per annum – scrapped off other savings – will be welcome but will make little difference in solving the UK’s infrastructure challenge.
“Experts estimate that the UK needs at least £400bn investment into our ailing infrastructure over the next 10 years. What is clear is that the UK must now look to private stimulus for infrastructure investment after the Chancellor today turned his back on additional borrowing.
“Around 65% of the UK’s infrastructure is already privately financed but we won’t unlock new development spend from the private sector without action and a consistent message from the Government, to build confidence amongst developers and investors.
“However, tucked away in the Chancellor’s speech was an intriguing reference to UK Guarantee support for 'the new power stations of tomorrow'. This could be a game-changer for new nuclear if the government is really serious about debt support as well as fixing the strike price."
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