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News Release

JLL residential comments on 2016 Autumn Statement

​23rd November 2016 - JLL residential comments on 2016 Autumn Statement

£3.5BN funding for more affordable homes in London

Adam Challis, Head of Residential Research at JLL comments:
"Dealing with the acute challenge of unaffordable housing in London deserves direct action and support. In that respect, provision for an additional 90,000 homes is of course welcome.
"There is no question that devolution makes sense, particularly for cities that are competing in a global race for talent and business activity. Greater control over how to support local innovation just makes sense.

"There remains a much larger issue of control for London's Mayor that deserves more attention. In comparison with other world cities, the UK Mayors do not have the same powers to raise and spend money at a local level. This creates a risk that UK cities do not have the tools to compete in the global race.”

New affordable housing invesment

Adam Challis, Head of Residential Research at JLL comments:
"Today's Autumn Statement announcement of new affordable housing investment is of course welcome by the industry, but more importantly for the 40,000 households who stand to benefit."
"Of further encouragement is the decision to share this support across both ownership and rental tenures. This is a shift in policy emphasis from the previous Government and better reflects the broad base of housing need.

"However £1.4 billion is a drop in the ocean when it comes to the scale of housing need. The Chancellors' hands are tied with the deficit continuing to grow, but there is a huge wave of private sector money seeking to invest in Britain's housing stock. He should aggressively be seeking out private partnerships - there is no time to waste.

"Government will have to demonstrate bigger ambition to solve the housing crisis. In this respect it is disappointing to hear of further delays to the new housing white paper. The housing industry needs a clear commitment to long-term supply solutions.
"The scale of the housing problem cannot be underestimated."

Accelerated construction investment

Adam Challis, Head of Residential Research at JLL comments:
"This is welcome and pragmatic investment to unlock large housing schemes. Each sites has its own challenges and by addressing the issues directly Government is likely to unlock a higher proportion of new homes for delivery."

Ban on letting agents fees
Lucy Morton, Head of Agency at JLL comments:
“Charges made by letting agents to tenants at the commencement of their tenancies should have been levied only to cover reasonable administration and referencing costs. However, this has been abused by some agents who have been overcharging for their gain and to the detriment of tenants so the Government has now acted and banned letting agents from making these charges.

“Reasonable charges including referencing costs may now be charged to landlords which in turn, could have a knock on effect on yields, so may then be added to the annual rent. It is essential that agents do not cut corners and fail to carry out stringent referencing checks.

“At JLL and W.A.Ellis, we have always advocated complete transparency of all charges made by agents to both landlords and tenants. We have also historically campaigned for the Government to regulate letting agents which it still fails to address.”