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Budget boost for housing

Communities Secretary Hazel Blears and Housing Minister Caroline Flint have welcomed proposals in the Budget that will support the Department for Communities and Local Government in taking forward its commitments to tackle climate change, build 'green' communities and meet the need for more affordable housing.

The budget sets out a number of measures that will support the delivery of the housing Britain urgently needs, helping more people to own their own home whilst ensuring that government is delivering on climate change commitments.

The Budget includes the following key measures:

 

  • 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. Today's budget 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 but making these would make a significant contribution toward mitigating climate change resulting in a 75 million tonnes reduction in carbon dioxide emissions over the next thirty years.  The chancellor has also announced his ambition for all public service buildings to be zero carbon from 2018. A task force will be set up to consider the how this ambition 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.

 

  • Microgeneration 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. This removes a perceived disincentive to invest in the installation of micro generation equipment. We will bring regulations forward commencing this change later this year, with the next business rate revaluation due in 2010.

 

  • New shared equity packages to help more people get a foot on the housing ladder - The Chancellor has 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 allow buyers to shop around for the best mortgage deals and are simpler to arrange then previous OMHB products.

 

  • Extension of land remediation relief to assist the development of brownfield land. Brownfield land is land that has been previously developed. This can include land used for industrial or commercial purposes that has since been abandoned and can in some instances contain hazardous waste. Because the cost of cleaning brownfield to a safe standard can be more than the land would be worth after redevelopment many areas are left abandoned. The government wants to encourage even greater use of such sites, support the regeneration of our towns and cities and continue to protect undeveloped land and is therefore extending current land remediation relief on contaminated land to the remediation of long term derelict sites (derelict since 1998).