Chancellor Philip Hammond delivered the Autumn Budget speech on 22nd November, and there was some good news for most first-time buyers but precious little news for landlords.
However, the Chancellor did announce the government's plans to consult on ways to encourage landlords to offer longer-term tenancies. This could come in the form of offering tax breaks to landlords, and the reality of longer tenancies would boost security for both tenants and landlords.
In addition, rent-a-room relief will be reviewed by the government in another approach to pushing longer tenancies, as well as looking at ways to motivate tenants to meet rent payments on time.
But the scene-stealing moment came when the Chancellor revealed the abolition of stamp duty (with immediate effect) for all first-time buyers purchasing homes worth up to £300,000. This will likely only benefit a small number of first-time buyers in the capital, including those looking to buy in Brixton or Battersea. So, in order to provide support to first-time buyers purchasing in high-priced areas, stamp duty will no longer be payable on the first £300,000 for properties worth up to £500,000. The normal rate of stamp duty will apply on the price above this.
The government estimates this measure will mean that 80% of first-time buyers won't have to pay stamp duty, while 95% of first-time buyers will benefit from a stamp duty cut.
As expected, housing was a key issue in the Budget. A new investment package of £15.3 billion will support the delivery of new homes over the next five years, and a total budget of approximately £44 billion will go towards the construction of 300,000 new homes each year until the middle of the next decade.
For more on the Autumn Budget 2017 and what it means for landlords, click below:
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