The Budget set out a number of measures, which the Government claims will help to meet the target of three million more homes by 2020. It also set a new aspiration that non-domestic buildings will be zero carbon from 2019 - subject to detailed consultation later this year.
Key Budget measures effecting buildings are:
Zero Carbon Non-domestic Buildings
In 2006 the Government announced that changes to building regulations will mean that by 2016 every new home will be zero carbon. The Budget now sets a new aspiration for non-domestic buildings, such as offices and shops, to be zero carbon from 2019.
The details and timeline will be subject to consultation later this year. It is estmated that a 75 million tonnes reduction in carbon dioxide emissions over the next thirty years could result.
The Chancellor has also announced a target for all public service buildings to be zero carbon from 2018. A task force will be set up to consider the how this can be achieved.
In addition, changes to permitted development rules will allow home owners to install carbon saving technology like solar panels and build minor extensions without needing to go through a lengthy planning process.
Micro-generation Regulations
Occupiers of commercial properties that install carbon saving micro-generation equipment, such as solar panels, wind turbines, and ground source heat pumps, will from this year no longer be immediately liable for any potential increase in business rate value of these investments.
This will from this year only be taken into account in the regular quinquennial revaluation of business rates, providing up to 5 years benefit to ratepayers.
Regulations will be put in place commencing this change later in 2008, with the next business rate revaluation due in 2010.
New Shared Equity Packages
The Chancellor announced that from April this year, two new equity loans will be available through the Government's shared equity scheme Open Market HomeBuy (OMHB).
The loans will allow buyers to shop around for the best mortgage deals and are simpler to arrange then previous OMHB products.
Brownfield land
The cost of cleaning brownfield sites to a safe standard can be more than the land would be worth after redevelopment and many areas are left abandoned.
Aimed at encouraging greater use of brownfield sites, the Chancellor is extending current land remediation relief on contaminated land to the remediation of long term derelict sites (derelict since 1998).
Yvette Cooper, Chief Secretary to the Treasury, and Caroline Flint, Minister for Housing and Planning, formally launched the review of the Housing Revenue Account Subsidy system.
Yvette Cooper, when she was Minister for Housing and Planning, announced the review in December 2007 as part of a wide ranging package of measures. The Government hopes these measures will support its new homes targets, whilst also ensuring existing homes are brought up to good fitness standards.
The review will build on the work of the pilots conducted with six local authorities, which looked at the costs and benefits of councils operating outside the Housing Revenue Account subsidy system. A report of this work was also published.
The review will consider evidence about the need to spend on management, maintenance and repairs. It will consider rent policy, including the relationship between council rents and rents set by other social housing providers.
It will also consider how the self-financing model developed in the pilot exercise would fit with the aims of the review and, if it is consistent with these, how it could be implemented.
Further, it will consider whether the rules which govern the operation of the HRA need to be changed in order to fit with a new system of financing.
To take the work forward, the Ministers announced that the Chartered Institute of Housing would be hosting a number of expert workshops on the main themes of the review to gather evidence to inform the review.
The review will be carried out jointly by officials from HM Treasury and CLG, with extensive stakeholder engagement and is expected to report to Ministers in spring 2009.
Information Notes
Six local authorities were involved in the pilot exercises - three with ALMOs and three without ALMOs. They worked up model business plans to show the costs and benefits of self-financing.
The six LAs and ALMOs were: Sheffield City Council and Sheffield Homes; the London Borough of Hounslow and Hounslow Homes; Carrick District Council and Carrick Housing; Cambridge City Council; Darlington Borough Council; Warwick District Council.
A contact group of experts and practitioners reviewed the modelling work and provided additional advice on key aspects, such as accounting treatment and legal issues.
Provisions in the Housing & Regeneration Bill will allow local authorities across the country by agreement with the Secretary of State to be excluded from (or hold certain properties outside) the HRA Subsidy system.
