7th Nov, 2018
Last week, Chancellor Phillip Hammond announced the 2018 Autumn Budget.
He vowed that the era of austerity was ending and that a ‘turning point in our nation’s recovery’ has been reached. But how did Hammond tackle housing?
It was good news for first time buyers as the stamp duty exemption was extended on first home purchases up to £500,000. This is part of a shared ownership programme in England and Ireland, which is an allowance to be applied retrospectively up to the date of the last budget in November 2017.
The Help to Buy Equity Loan Scheme has also been extended until 2030 – which is fantastic to hear and means first time purchasers have the opportunity to save some extra pennies.
Landlords have been subject to taxation changes in recent years – most notably the scrapping of tax relief for mortgage interest payments. But last week, the budget was relatively light where restrictions were concerned, and they do not appear to have tightened any further.
On the other hand, as of April 2020 lettings relief on Capital Gains Tax will be limited to properties where occupancy is shared between owner and tenant. This will be a blow to those who have lived in their home and let it out at some point during their ownership.
To address the housing shortage, the Chancellor announced there would be £2 billion made available for the Affordable Homes Programme. This will give property associations some certainty over the next ten years, and is a step in the right direction to deliver new, well-needed homes to the market.
Overall the Autumn Budget announcement proved to be positive on the whole for the housing sector, and we’re excited to see some of the plans unfold.
For property advice, please contact us on 01484 682999 and one of the Applegate team will happily help you.
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