UK Autumn Budget 2024: Boosting Housing Supply and Supporting SME Housebuilders.

In the recent Autumn Budget, the UK government introduced a range of housing-focused initiatives designed to increase housing supply, support SME housebuilders, and ease home ownership challenges, particularly for first-time buyers. Below is a summary of the key takeaways that highlight how this budget could reshape the housing landscape and create new opportunities for smaller developers.

1. Increasing Housing Supply

The UK government has allocated ￡3.1 billion to stimulate the construction of 1.5 million new homes over the next five years. Part of this funding will support targeted areas with substantial housing needs, including Barking, where up to 7,200 homes are planned, and Canary Wharf, with an additional 750 homes. This commitment underscores the government’s broader goal to close the housing deficit and address long-term supply issues by unlocking developments in high demand areas.

2. Boosting SME Housebuilders

SME housebuilders are central to the government’s strategy, with ￡3 billion set aside specifically to support smaller developers. Unlike larger players who can often hold undeveloped land until prices rise, smaller developers are encouraged to break ground sooner. This fund, combined with streamlined planning reforms aimed at easing project approval processes, will empower smaller firms to tackle housing projects that may have previously been out of reach due to financial and administrative constraints.

3. Affordable and Social Housing Initiatives

The budget further reinforces Labour’s commitment to social housing. Local councils now have the authority to keep all proceeds from council house sales, encouraging reinvestment into local affordable housing initiatives. Additional funding has been allocated for projects in Liverpool and Cambridge, aiming to meet local housing needs while ensuring that a significant portion of new builds remain affordable.?

4. Support for Sustainable Development

As part of its commitment to green and sustainable housing, the budget offers incentives and grants focused on energy efficiency. Landlords and developers are encouraged to adopt energy-efficient practices, with minimum energy performance standards set to take effect by 2030. This will provide developers, including SMEs, with both funding and motivation to adopt greener construction practices, aligning housing growth with the UK’s climate objectives.?

5. Adjustments to Stamp Duty and Capital Gains Tax

The budget has brought in some changes to Stamp Duty Land Tax (SDLT), which will particularly affect second-home buyers and investors. For these groups, the SDLT rate on the first tier has increased by 2%. While no changes were made for first-time buyers, the end of their current SDLT relief in April 2025 may impact affordability. Additionally, the capital gains tax on non-property assets has increased, while residential property disposals saw a reduction in the higher rate from 28% to 24%, which may stimulate transactions in the residential sector.?

Looking Ahead

The UK’s Autumn Budget 2024 takes a holistic approach to the housing crisis, addressing supply bottlenecks, affordability challenges, and the climate impact of housing development. By prioritising SME housebuilders, the government is actively encouraging smaller players to become instrumental in achieving national housing targets. These measures, combined with incentives for sustainable building practices, reflect a commitment to balanced growth, fostering both immediate and long-term improvements in the UK housing market.?

This budget signals a promising opportunity for SME developers and stakeholders across the housing industry to play a key role in meeting the nation’s housing needs while also supporting sustainable practices.