In a blow to both landlords and buy-to-let investors, new Chancellor Philip Hammond failed to even address stamp duty reform in his Autumn Statement.
The previous Chancellor introduced a raft of measures designed to curb the buy-to-let market. This includes the 3% stamp duty surcharge on second homes and the higher stamp duty rates on properties priced in excess of £1.5 million.
Many voices from within the industry have called on the current Chancellor to either reduce or scrap these completely.
Many in the industry have blamed stamp duty hikes for a general slowdown at the top end of the London market, and not singled out Brexit or the subsequent economic uncertainty.
Another key measure outlined in the speech was the government’s intention to ban letting agents’ fees for tenants ‘as soon as
possible’. These costs will instead be paid by landlords.
Will this help renters in the long-term? It should, but as Housing Minister Gavin Barwell predicts, this measure might only provide relief for tenants in the short-term.
In the longer-term, these extra costs might be passed to tenants through higher rents.
This Autumn Statement placed emphasis on the importance of boosting productivity through continued investment in infrastructure and transport – as well as housing.
The need for more affordable housing lay at the heart of the Chancellor’s speech. Home ownership is still a struggle for many people, and the Help to Buy scheme will continue.
In addition, London will receive £3.15 billion to build 90,000 new houses, £1.4 billion will deliver 40,000 homes, while a £2.3 billion Housing Infrastructure Fund will be used to provide 100,000 homes in areas where there is demand for housing.
With no changes to Capital Gains Tax but a reduction of Corporation Tax to 17% by 2020, the Chancellor’s main focus is to deliver a ‘housing market that works for everyone’, while ensuring Britain can thrive in a post-Brexit environment.
For more information on the Autumn Statement 2016, click on the link below: