Autumn statement 2011
The chancellor George Osborne gave his autumn statement on 29 November. The chancellor's statement and full documentation can be found on the Treasury's website.
The key measures of interest to mortgage lenders are highlighted below. We issued a press release in response, and a policy circular for members and associates.
Financial sector regulation
- The draft Financial Services Bill is currently undergoing pre-legislative scrutiny by a joint parliamentary commitee. Subject to parliamentary timetabling, the legislation will be introduced early in 2012.
- The government is considering a varierty of options for implementing the recommendations of the Independent Commission on Banking. The government will respond before the end of 2011 with more detail.
- Will amend the regulations for UK covered bonds to provide greater transparency for investors and help banks use covered bonds to raise funding.
Housing market
- Will introduce a new build indemnity scheme to increase the supply of affordable mortgage finance for new build homes, estimated to help up to 100,000 households to buy their own home. The government's maximum contingent liability under the scheme will be capped at £1 billion.
- Will reinvigorate the right to buy to support social tenants who aspire to own their own home, but raising discounts up to 50%.
- Will launch a new £400 million get Britain building investment fund to support firms in need of development finance. The government will issue a prospectus to interested developers by the end of the year.
- Will allocate £200 million to encourage early uptake of the green deal in its initial phase over 2012-2013. Further details will be set out next year and will be subject to state aid considerations.
- Will publish analysis showing that the stamp duty relief for first-time buyers has been ineffective in increasing the number of first-time buyers entering the market. The relief will therefore end on 24 March 2012 as planned.
