Last week, Chancellor Phillip Hammond delivered the last ever Spring Budget. Here’s a short summary of the Budget’s key points concerning the property industry.
In his speech, Hammond presented a new NS&I bond – an additional option for those looking to save to buy a property. Starting in April, the scheme will pay a fixed rate of 2.2% on deposits up to £3,000. The most interest available will be £202 before tax. Other options for first-time buyers currently include the Lifetime ISA and Help to Buy ISA, amongst others.
With inflation going up to 2.4% this year, and some mortgages as low as 1.59%, there is no better time to buy and get on the property ladder.
Buy to Let
Mortgage tax relief is to be reduced to the basic rate of 20% between April this year and April 2020. The Chancellor also confirmed that pre-tax rental profits limit will be increasing. The personal tax-free allowance is currently £11,000 and will be at £12,500 by 2020.
Rent a Room
The Chancellor’s supporting documents state there are plans to revamp the Rent a Room Scheme, which currently allows people to earn up to £7,500 a year – tax-free – through renting out a room in their home.
Despite calls for this to be revised, Stamp Duty was not touched upon in the Chancellor’s speech.
Ban on rental fees
Whilst there was no mention of an exact date as to when this will come into force, the consultation is set to take place in the next couple of months.
Whether you’re looking to rent, let, buy, or sell, Kingsley Hamilton Estates can help. Call our team today on 020 7078 0214, or email firstname.lastname@example.org and we’ll get right back to you.