Devolution and an expansion of the Right to Buy scheme were at the heart of the Queen’s Speech this week, the first presented under a Conservative majority government for 19 years.
The speech set out plans for a City and Local Government Devolution Bill, which will hand powers to regional cities and allow them to have elected mayors.
Andrew Angeli, head of UK research at CBRE Global Investors, welcomed the bill and said it would help accelerate the trend of overseas capital looking beyond London to the higher-yielding regions.
The speech also confirmed the government’s intention to deliver on the Conservatives’ manifesto pledge to expand Right to Buy to housing association tenants.
The policy was attacked by leading property figures, who fear it will accentuate the housing crisis by increasing demand and potentially reducing supply.
Gerry Hughes, senior director at Bilfinger GVA, said: “It is a populist policy which subsidises those who can afford to buy, but does nothing to encourage the delivery of more homes, or address our housing crisis.
However, secretary of state for communities and local government Greg Clark defended the policy, insisting that every home sold under the scheme would be replaced like-for-like.
The speech also outlined a string of further housing measures, including an increase in the supply of starter homes to be offered exclusively to first-time buyers at a 20% discount and the introduction of a statutory register for brownfield land.
BPF chief executive Melanie Leech said: “The starter homes initiative holds potential, but we have several questions around the realities of delivery. The focus on brownfield land is similarly positive, but we have doubts about how much suitable land will come to market.”
