The Observer has learned that chancellor George Osborne will use his 2015 budgeton 18 March to announce an extension of the Help to Buy scheme, under which the government lends up to 20% of the cost of a new-build home in a bid to stimulate building. He will also propose a reform of the compulsory purchase laws to enable property developers to respond more swiftly to changes in demand.
This was already flagged in the RES speech in Jan and seems to relate to Home Loss Payments.
He said he would consult in the Budget on transforming the rules on compulsory purchases of land, enabling the Treasury to pay homeowners and landowners more than the market value of their property.
Mr Osborne said that in some cases “if you pay people a little more you’d get planning a little quicker and the whole process could cost you less”.
Lets hope he goes the whole hog and introduces as the law commission recommended a decade ago a cpo code to replace the byzantine century of caselaw.
Given that housebuilding is falling because the Governor of the Bank of England had to reign in mortgage lending, in part because of the dangerous Help to Buy Scheme it is odd that he continues to poor counterproductively oil on the fire. Help to Buy as a consequence is probably having a net negative impact on housebuilding.