In his first Autumn Statement, Chancellor Philip Hammond announced a number of changes and funding for the property industry.
Industry figures were hoping the 2016 Autumn Statement would be a chance to bolster activity in the housing market, and Philip Hammond said the ‘housing challenge’ was at the top of the list of ‘tackling the economy’s long-term weaknesses.’
Here are the five key points to note.
- Despite rumours that it could be abolished or revised, there will be no change in Stamp Duty – in fact, it wasn’t even touched upon in Phillip Hammond’s speech.
- There was also no reference to former Chancellor George Osborne’s buy-to-let tax reforms. However, on the subject of buy-to-let, there was an announcement that incorporation and tax would be reviewed. Whilst details are limited at the moment, this could impact buy-to-let landlords who have set up companies for their buy-to-let properties to combat restrictions on mortgage interest tax relief.
- There will be a Housing White Paper designed to address what Hammond has called the ‘urgent challenges’ the housing sector currently faces.
- Letting fees for tenants will be banned. This ban is set to come into action as soon as possible and is set to save renters hundreds of pounds. You can read about this in more detail here.
- However, the biggest announcement for the property industry was in regards to new housing. In addition to the £3 billion Home Builders Fund, Hammond has promised:
- £3 billion will be set aside for around 90,000 affordable homes in London
- A £1.4 billion fund aimed at helping the construction of around 40,000 affordable homes over the next five years
- A £2.3 billion fund to ‘unlock land’ for housing opportunities in areas of high demand, with expensive homes
- Relax planning regulations to allow what the Chancellor has called ‘providers’ to build a range of new-build homes.
Want to find out more about how the Autumn Statement will impact the property market? Speak to Kingsley Hamilton’s property experts today on 020 7078 0214, or send an email to firstname.lastname@example.org.