Property expert David Jones of Allan Morris & Jones looks at Mr Osborne’s Autumn Spending Review and assesses the effects this may have on the property market.

Are things finally going to change for the better in the world of UK housing? Chancellor George Osborne certainly says that they are. In his autumn spending review he announced plans to “end the crisis of home ownership in our country.” Fine words indeed. But what exactly do they mean?

The housing budget will be doubled to £2 billion a year and 400,000 new homes built across the country. The new building spree will be funded by public money and developers will be encouraged to build 200,000 starter homes. Funding will also go to build 135,000 shared ownership homes allowing for an initial buy-in from purchasers and then the acquisition of more shares as they can be afforded.

The government will also widen the Help to Buy Scheme so that it will be open to all households earning less than £80,000. Young families will also benefit from the Chancellor’s decision to hold back the proposed reduction in tax credits payments by delaying implementation of these unpopular cuts. He is, however, capping housing benefit for new tenancies.

Other measures include 10,000 new homes to be built to rent out at a rental value which will allow tenants to save for a deposit while they rent. Also, 8,000 specialist homes are to be built for older people or those with disabilities.

These are all headline statements of intent that suggest improving fortunes for most people struggling to afford to buy their own home. The less fortunate ones on this occasion are those people intending to buy either holiday homes or buy-to-let properties.

They will now be asked to pay a higher rate of stamp duty, this being an extra 3 per cent on top of the usual levels. Very many investors will be deterred by this. On the other hand first time buyers may well benefit, as there is likely to be less competition for flats and houses at the lower end of the market.

I think these particular measures are not so much designed to punish buyers of second homes, but are more concerned with trying to control house price inflation, which – due to the continuing record low interest rates – is still growing at a greater rate than many economists think is sustainable. Whether higher stamp duty bills will really deter buy to let or second home buyers in the long run remains to be seen, but meanwhile the Chancellor will raise an extra £1 billion by 2021 through this measure.

Clearly Mr Osborne hopes that these numerous small steps in the property market will equate to a giant leap in improved supply and affordability by the time of the next election. Let us hope he is right. The government does need to ensure that property ownership remains a realistic ambition for the vast majority of young people in this country. Hopefully these measures indicate a government that understands this.