On Monday, October 29, Chancellor of the Exchequer Phillip Hammond delivered the Autumn Budget. This is the last budget before the UK leaves the European Union, so it’s a significant one. Here’s how it’ll affect the property market in particular.
More stamp duty changes
In 2017’s Autumn Budget, stamp duty for first-time buyers was abolished on houses under £300,000 (in London it was abolished for properties under £500,000 with stamp duty land tax levied on the amount between £300,000 and £500,000). This year’s budget extends this relief to first-timers buying shared ownership properties up to the value of £500,000.
Not only is this a huge help to people wanting to get onto the property ladder in the near future, it’ll also help people who just climbed onto the first rung. The benefit is retrospective, as anyone who’s bought such a place in the last year may be able to claim back some or all of the stamp duty they’ve already paid. The details of this scheme aren’t available yet.
House building help
This time last year, Hammond announced a £44 billion fund to help the nation build homes to reduce the housing stock shortage. This year sees a further £500 million in the pot to help with the construction of 650,000 more properties.
There are also plans to make things easier for neighbourhoods to set aside land for developments and to sell the properties at discounted rates for locals.
Tax relief restricted to shared occupancy lettings
From April 2020, there’ll be no more lettings relief on capital gains tax for non-resident landlords. Only tenancies in which the landlord occupies the same property as the tenant will be eligible for this relief; the details aren’t available yet.
There are other features in this latest budget that affect property owners and hopefuls:
- the National Living Wage is set to rise from £7.83 to £8.21;
- personal tax allowances rise from £11,850 to £12,500 (basic rate) and from £46,351 to £50,000 for a higher rate;
- local councils will be able to draw on a Future High Streets fund totalling £675 million to help them to redevelop their high streets, and
- schools will get an extra £400 million in funding from April 2019 to April 2020.