CHANCELLOR George Osborne announced biggest homebuilding programme this century in his Autumn Statement.

“We are the builders,” proclaimed Mr Osborne as he pledged to build 400,000 new homes in his spending review but the focus will be on properties to purchase at a discount rather than to rent with 20 per cent discounts for under-40s As he wielded the axe across many other departments, the chancellor doubled the housing budget to £2billion as he set out plans for the largest programme of affordable house building by a government since 1979.

Half of the new properties will be starter homes with 135,000 to be available through the help to buy or shared ownership schemes.

However, many experts Hampshire believe there should be more emphasis put on homes to rent and the plans for new higher rate of Stamp Duty for second home and buy-to-let buyers met with a mixed reaction.

Kersten Muller, Real Estate Tax Partner, and Jenny Brown, Head of Housing, at the Southampton offices of accountant Grant Thornton UK LLP, said: “In today’s society there are many people who either cannot afford to buy (whether now or ever) and those who do not want to buy for variety of reasons. The challenge for the UK remains to build a fully-working institutional rented sector to support social mobility and a vibrant economy.

“It is surprising to see private investors being hit again with an increased stamp duty land tax rate on purchase and quicker payment of capital gains tax – investors provide the majority of private rented housing in the UK at present. Whilst we recognise the need for a professionally-managed rental sector and the benefits of a reduction in empty homes, there is a danger that private landlords will pass on additional costs or cut maintenance spending.

Jeremy Blackburn, head of policy, at the Royal Institution for Chartered Surveyors, said: “A push towards affordable home ownership should not come at the expense of affordable homes for rent. If cities, such as London, are to thrive, we need to ensure that housing can be provided for all of its workforce - home ownership can only go so far and even shared ownership may prove too expensive for some. The Chancellor was short-sighted not to incentivise affordable homes for rent.

“George Osborne is essentially subsidising one sector of the housing market over all others, home buyers already benefit from significant Government funding. Many people struggle to afford to own their own homes and a large majority rely on the available supply of affordable rents. The Chancellor may feel that he is supporting the under-privileged by pushing up buy-to-let Stamp Duty, but we would argue that such an inflationary measure will discourage small landlords and reduce the rental supply – prices will inevitably rise."

Gerard Price, chairman of housebuilder Bargate Homes, based at Fair Oak, said: “We welcome once again the Government’s commitment to the delivery of increased levels of new homes. But in truth it’s the planning system which needs to change and whilst the Government has been making positive statements for some time, structural reforms are required.

“Buy to let is seen by a huge number of people as the most secure way to provide for their retirement and provide a secure home for their savings. Ongoing stock market volatility and big business blunders make the ability to touch, feel and visit your investment very appealing.

“Taxation changes may have a marginal effect, but we anticipate very strong continuing demand.”

Alan Rolfe, tax specialist, Eastleigh’s HWB accountants and business advisers, commented: “The stamp duty increase on buy-to-let and second homes was a surprise and one which will cost landlords and their tenants. Osborne has budgeted that an extra three per cent on stamp duty on buy-to-let and second homes will raise £1bn by 2021. I suspect this is an attempt to fill the void created by his forced turnaround on tax credits. It will result in increased costs for landlords which will in turn be passed on to tenants which can’t be good news. We may well see a rush to buy before the hike in April 2016 and the possibility of a lull for the summer and autumn.”

Tim Willcocks, assistant director of Land & New Homes at Radian, one of the South’s leading Housing Associations said: “We welcome the Chancellor’s acknowledgement that the UK is still in a ‘housing crisis’ and how he plans to tackle this with substantial increases in funding for affordable housing delivery during the remainder of this parliament.

“The increased support for shared ownership and in particular the removal of current restrictions will help not just first time buyers, but others priced out of the housing market Chris Schutrups, founder of Hampshire independent mortgage brokerage company The Mortgage Hut, says the Chancellor’s decision to raise Stamp Duty Land Tax (SDLT) on second properties will drive house prices up artificially in the short term while effectively suppressing them in the longer term.

Chris expects existing and new landlords to move to buy investment properties ahead of the stamp duty rise on April 1 next year in a bid to avoid the inflated tax, impacting on prices as demand increases.

But he said the introduction of the stamp duty increase on second homes could actually curtail house price rises as estate agents move to value investment properties at more attractive rates.

Chris said: “Increasing SDLT by three percentage points above current rates for second homes will certainly have an impact on the housing market in terms of house prices, as those who are in a position to invest move to do so before April 1.

“But as we saw when SDLT threshold was lowered following the housing crash in 2008, estate agents are savvy at pricing properties at an attractive level to encourage maximum interest from investors. This may mean investment properties on the cusp of SDLT thresholds are kept at lower prices, and this will have an impact on the wider property market.”

Chris added: “It’s understandable why the Chancellor has made this move, to try and alleviate the housing crisis by helping first-time or single property buyers access a wider range of houses, especially the new build affordable housing the Chancellor has also committed to building.

“What we do want to see, however, are house prices that continue to steadily rise, as that is a clear indication of a robust market — as well as a market that is a fair one for all buyers.”