Spring Budget Reaction – by Bargate Homes

March 7, 2024

Mark White, Managing Director for Hampshire-based housebuilder Bargate Homes, said: “I was expecting a brave Hail Mary from the Chancellor – not such a disappointing case of Hunt for the good news – given this is an Election year.

“There was no support for SMEs, no sustainability initiatives beyond the reference to nuclear energy, and housebuilding is clearly not a top five priority for this government, which may result in a new political party in No.10.

“We do welcome the drive to ease the cost of living crisis, namely the recently announced 12.3% fall in the Energy Price Cap, the 2% reduction in National Insurance, the Fuel Duty Freeze extension and 5p cut for another year, and the Household Support Fund continuing at current levels for another six months. We also support the child benefit tax threshold increases and the Government’s childcare plan. But this is against the backdrop of significant fiscal drag and a much larger overall personal tax burden. By 2028/9 tax levels are forecast to be at a record high of over 37%.

“We hope the 1% above inflation increase for public spending and the ‘in-full’ £2.5bn Public Sector Productivity Plan investment transforms the effectiveness of the NHS and other vital public services.

“However, apart from the ability to put more cash into an ISA, nothing was announced to help people buy beautiful, sustainable new homes – or the housebuilders who build them. Mr Hunt referenced 1 million new homes by the end of this Parliament, but has he forgotten the manifesto target for this five-year term was 1.5 million?!

“The Chancellor has missed a range of opportunities which could have made an immediate difference to the housing market, especially the crucial first rung. Green Mortgages for homes rated EPC-A or B should be significantly incentivised. A commitment to net zero targets could have been demonstrated by offering a Stamp Duty rebate for homeowners who retrofit eco technology into their homes. Similarly, feed-in tariffs should be reintroduced for homeowners with solar panels, to reward people for supplying renewable energy back to the grid.

“And what happened to the anticipated announcement regarding 99% mortgages? Or the industry’s hope of the reintroduction of Help to Buy, given it generated a surplus back to the Government for the best part of a decade. It is very unhealthy that the number of new homes being built is half what it should be and thousands of would be first time buyers can’t get a foot on the ladder.

“If housebuilders could build more homes, we could look towards generating more tax revenue. However, this government’s planning and environmental policy changes are achieving the total opposite. DLUHC has failed to deliver enough new homes and every initiative I hear tabled could take five years to implement, which takes us towards the end of the next parliament!

“For this government to stay in power, it must get serious about tackling planning obstacles – not just for urban brownfield sites – and promoting housebuilding. It is such a huge and vital industry that supports the wider economy, and the lack of appropriate, sustainable, and affordable housing has become a heated and divisive political issue.”

Bargate Homes is a wholly owned subsidiary of VIVID – Hampshire’s largest provider of affordable homes. Established in 2006, the company builds select developments in prime locations across Hampshire, Dorset, and West Sussex. Bargate Homes is currently delivering 300 homes per year across six live developments and has a pipeline of future sites expected to deliver in excess of 2,500 new homes.

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