What impact does the Autumn Statement have on Property Investors, Homeowners and Tenants? 🤷♀️
#CAVENDISHEXPERTS! The logical choice for Lettings, Sales and Property Management in Nottingham | Cavendish Residential | One Fletcher Gate NG1 1QS | 0115 941 0656 | www.cavendishproperty.co.uk
Chancellor Jeremy Hunt unveiled the contents of his Autumn Statement in the House of Commons a few days ago (Wednesday, 22nd November 2023).
Safe to say, it's nowhere near as dramatic/car-crash-like as last year's 'mini-budget'...
Mr Hunt set out the Government's tax and spending plans for the year ahead, affecting the take-home pay and household budgets of millions of people, as well as the funding for key public services.
Here is a summary of what it means for Property Investors, Homeowners and Tenants:
✅ Good for Investors, Landlords and Tenants
🔹 Better affordability per household
🔹 Universal Credit up by 6.7% from April 2024
🔹 The state pension is set to rise 8.5% or £900 a year
🔹 National Insurance (NI) down 12% to 10% from 6th January 2024...
🔹 On average, a saving on a salary of £35,000 of £450 per year
🔹 The Local Housing Allowance rate, which affects how much help lowest income renters receive when renting from a private Landlord, will be increased, having been frozen since 2020
🔹 This will help 1.6 million households with an additional £800 a year on average
🔹 Legal minimum wage (known officially as the National Living Wage) to increase from £10.42 to £11.44 an hour from April 2024
🔹 Tax cuts for self-employed Landlords by way of abolishment of Class 2 NI for those earning more than £12,570 a year and Class 4 NI down from 9% to 8% (total saving approximately £350 a year)
🔹 More rented property supply (much needed!)... as new permitted development right will enable property investors to convert any home into two flats, so long as the exterior remains unaffected
🔹 This additional stock will effectively keep rents more stable and affordable
❌ Hearsay surrounding the scrapping of Section 24 to provide further tax relief for Landlords was not addressed, with no mention of it whatsoever ❌
❌ There was talk of a reduction in inheritance tax prior to the mini-budget, however this was not mentioned in the proposals ❌
🤔 Okay (ish) for First-time Buyers and Sellers
🔸 Mortgage Guarantee Scheme has been extended by 18 months
🔸 The scheme aims to help buyers with smaller deposits, providing lending up to 95% of the sale price (up to £600,000)
🔸 How is the Government involved? It gives a partial guarantee to the mortgage company of up to 15% which in turn, provides more confidence for higher lending
🔸 First introduced back in March 2021, was due to end December this year
🔸 Extended until end of June 2025
🔸 Does not include Buy-to-Lets or second homes
🔸 As house prices and interest rates go down, more people likely to take advantage
🔸 Sounds good, but in reality the scheme is extremely limited - First-time Buyers would have hoped for more than just an extension to the scheme
🔸 Read full article from Rightmove here
❌ Predictions of a Stamp Duty holiday fell flat as there was no mention of such plans ❌
📩 For a full breakdown of the Autumn Statement, visit Zoopla's dedicated page here 📩
💰 Funding for new properties to be built
🔹 The Chancellor promised to invest more than £110 million this year and next to build 40,000 new homes and boost supply
🔹 An additional £450 million will be allocated to the Local Authority Housing Fund to build around 2,400 new homes next year
If you have any questions about how these changes may affect you, whether it's buying, selling, renting or investing... Contact us for the best advice!
Email Operations Director Sam Barker for more information (sam.barker@cavendishproperty.co.uk) 📧
📸 Sam Barker, Operations Director at Cavendish Residential 📸
☎📧🗨
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