A little boost for the London Land Commission and the relaxation of planning laws in less than two dozen “housing zones” were the only nod to increasing the provision of homes in yesterday’s budget.The (property) headlines were reserved for the new “help to buy ISA”, an extraordinary announcement that a Tory Government would donate 25% to savings/accumulated interest in special tax-free accounts, to be used for deposits on the purchase (by a first-time buyer) of a home. The small print… a maximum of £3000 from the Government, a maximum opening deposit of £1000 and £200 monthly savings from the saver, and maximum property values of £250,000 outside London and £450,000 in the capital. The total projected spend by the state? £2.1bn over five years. Which could have built a lot of homes for housing associations, instead of offering a helping hand to middle-class ftbs, and helping to support an dysfunctional system. How much of that 25% will vanish - over five years - into increased property price values as a result of greater demand?
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