If there is any hope for the Boris Bounce to be elongated, there is a need for the Budget to support the property market. Even though Cabinet changes means that Rishi Sunak has had little time to prepare for the Budget, there is an expectation that first-time buyers will be supported in the Budget.
This is positive news for the property market. Still, it should be noted than when the Government introduces measures to support first-time buyers, they often penalise landlords and the rental market. This is why there is genuine concern amongst the letting industry as to what may occur
There are suggestions stamp duty will be increased, with the initial threshold perhaps being lifted to £500,00. This will support many first-time buyers, but the support may not be as practical for landlords. After all, landlords who buy a property to let are subject to an additional 3% surcharge on stamp duty.
Landlords may benefit from stamp duty changes
If the lower threshold of stamp duty is increased, landlords will benefit from only having to pay the 3% on properties priced below £500,000; but it is still far from perfect. Mind you, considering the issues which have gone against landlords of late, and there will be many letting industry professionals who are pleased to take any benefit or positive outcome they can.
There may be changes affecting landlords regarding the possession process. The Government has previously intimated an intention to abolish Section 21. There has also been support for improving the possession process for landlords, which would be welcomed by many in the industry.
Of course, for many, the lack of supply in the market is the primary issue, and this is something which many in the industry want to change.
David Smith is the Policy Director for the RLA, said: “The tax system for rented housing is failing. It encourages the provision of holiday homes over long term properties to rent, it deters investment in new housing and provides no support to those wanting to make energy efficiency improvements.”
David Smith continued by saying; “For the sake of those living in rented housing or who are looking for accommodation, Ministers need to use the Budget to urgently change course and work with good landlords to ensure the provision of good, long term, affordable housing.”
What else may occur in the Budget
While no one knows for sure what is likely to arise in the Budget, some industry experts have hypothesised about what could be introduced. There is some thought that pension tax-relief could be changed. There is a feeling that for people from earning more than £50,000; the Government could reduce the pension tax relief from 40% to 20%.
There is also expected to be measures regarding transport. Still, with the quick changes made in the Cabinet in the lead-up to the March Budget, not many people are willing to predict what will happen, with any degree of certainty.
No matter what occurs in the March Budget, you must seek advice and guidance from an expert in the field. At Dunedin Sales & Lettings, we are pleased to say we have helped many vendors and landlords in and around Rubery. When it comes to making the most of your options, contact us today, and we will be more than happy to assist you.