Chancellor Philip Hammond delivered his Autumn Statement to the House of Commons yesterday. From extending the Help-to-Buy scheme to abolishing the Stamp Duty tax, here are the key points relevant to landlords, tenants and the property industry as a whole:
Stamp Duty changes for first-time buyers
First-time buyers in England, Northern Ireland and Wales spending up to £300,000 on a property will no longer pay the tax. Those paying up to £500,000 in high-price areas such as London will only be charged on the part of their purchase over £300,000.
Philip Hammond explained: “House prices are increasingly out of reach for many. It takes too long to save for a deposit and rents absorb too high a portion of monthly income. So the number of 25 to 34-year-olds owning their own home has dropped from 59% to just 38% over the last 13 years.”
300,000 new homes to be built each year by 2025
Philip Hammond also revealed plans to build 300,000 new homes a year by 2025 with the aim to make them more affordable. The Chancellor confirmed that £44 million would go towards capital funding, loans and guarantees to support house building throughout the country.
An extra £10 billion for Help to Buy Equity Loan scheme
As previously announced by Theresa May, the Chancellor confirmed that there would be a £10bn extension to the Help to Buy Equity Loan scheme. According to the Government, this measure should allow another 135,000 people to get on the property ladder.
100% council tax premium on empty properties
Homeowners who leave their properties empty could see their council tax double. Chancellor Philip Hammond is giving local authorities the ability to charge 100% premium on council tax for empty properties. The surcharge was implemented to stop investors from leaving their properties empty.
Mr Hammond declared: “I want to address the issue of empty properties. It cannot be right to leave a property empty when so many people are desperate for a place to live, so we will legislate to give local authorities the power to charge a 100 per cent council tax premium.”
To find out more about what the changes mean for you, or for any other property requirements, give our team a call on 020 7078 0214, or send an email to firstname.lastname@example.org.