Addressing the UK’s housing crisis in his Autumn Statement, Chancellor Philip Hammond announced investment plans to confront the chronic shortage of affordable homes across the capital.
 
His proposal for a £2.3billion Housing Infrastructure Fund to support the construction of up to 100,000 new homes and an additional £3.15billion for 90,000 new houses in London are part of the government’s efforts to help tackle the scarcity of affordable homes. 
 
With home ownership now a distant dream and more people renting privately, Tom Oliver, Business Development Manager at Catalyst Housing in Ealing, said: “With the Autumn Statement we’ve seen a move back to putting funding into rented accommodation, so that’s quite useful in terms of providing affordable provision to people across London and Ealing. 
 
“The additional funding is certainly welcome because ultimately to deliver more homes you need four aspects to be working in partnership, so funding, land, planning and partnership and this additional funding will assist in the provision of rented accommodation.” 
 
In addition to the government’s investment a further £1.4billion will be used for 40,000 affordable homes in the country.

However, Rajiv Nathwani believes the investment does not anchor a long-term goal in a politically changing landscape. 
 
The Hertfordshire group director and founder of Quivira Capital said: “I think Philip Hammond wasn’t expected to be doing this Autumn Statement and I think that shone through. 
 
“Structurally in the UK we’re building anywhere from 75-175,000 homes too little every year, so the fact that the chancellor’s big announcement was infrastructure for 100,000 homes which won’t be delivered for another 7-10 years, it will only resolve the shortfall in structural house building for one year. 
 
“We need that type of thing to happen year in year out consistently for the next five years at least for us to actually start building as many houses as we require in this country.
 
“They’ve got to invest long term now, but it’s very late in the day, and I don’t think the problem is going anywhere for the rest of this decade and early into the next one.”
 
With Shelter revealing house prices since 1969 have increased by 48 times for first-time buyers, far out-pacing incomes which have only grown 29 times, the statement has made clear steps to help those seeking to step onto the aspirational property ladder. 
 
Mr Oliver added: “Before the Autumn Statement the focus of funding was on shared ownership properties and to help first-time buyers get on to the property ladder and that still remains. 
 
“They’ve now added in the additional money for rented accommodation so it’s good to have that mix of housing products that people can access, and in terms of the provision for first-time buyers, shared ownership is one way in which they can access the market. 

“In terms of the right to buy, we’ll certainly work with the government to explore the outcomes of those pilots and see how the programme works. 
 
With the announcement of an expanded regional voluntary Right to Buy scheme which will allow eligible tenants in housing associations the chance to buy a house at a discounted price Mr Nathwani does not believe the scheme will help.
 
He said: “You’ve got housing associations in this country with massive property portfolios which are growing and they’re trying to provide more. 
 
“To do that they have to raise money in a capital market, which are investors in the city who provide money to these housing associations.
 
“If the government changes the goalposts and says actually you thought your houses were 100,000 each but now we’re going to give people the right to buy at 80,000 each, that causes a huge headache and will potentially impact housing associations ability to provide more housing and expand their reach.”
 
Commenting on the new investment in affordable housing, Campbell Robb, Shelter’s chief executive, said: “This extra investment will be welcome news for many of the ‘just about managing’ families crying out for homes that are genuinely affordable. 
 
“It’s promising to see restrictions on funding relaxed, which should help to build the homes that those struggling actually need — including affordable homes to rent.
 
“As always the devil will be in the detail, and we are looking forward to working with the government to make sure that this funding helps provide homes for those struggling with high housing costs right across the country.”