Downing Street Boris Johnson

Rumours circulate about property market’s place in Autumn Budget

Chancellor of the Exchequer Philip Hammond will reveal the plan for the 2018 Autumn Budget on 29 October, and new changes for buy-to-let landlords are being speculated. 

Brexit is likely to be the main focus of the Autumn Budget. However, given the Government has put improving the housing sector as a high priority on their agenda, many are predicting the property market will be effected in some way. Numerous rumours are circulating about what the Budget could mean for the property market, and in particular buy-to-let landlords. 

Predictions involving buy-to-let landlords & tenants 

Many news outlets are analysing the possible changes buy-to-let landlords could see in the Autumn Budget. In a recent article on Landlord Today, Andrew Turner, chief executive of  Commercial Trust Limited, shared his predictions, including the possibility of tax breaks for longer tenancies 

Mandatory longer-term tenancies continue to be debated in Parliament. For a year, there has been speculation that landlords could be incentivised to offer longer term tenancies through tax breaks, so it is possible this will be announced as part of the Budget. 

Additionally, landlords and tenants could potentially receive a capital gains tax break when a property is sold to a sitting tenant of at least three years. Currently, landlords pay up to 28% on profits for capital gains tax.  

The tax break is a proposal from the think tank Onward, which claims the policy would benefit nearly half a million households over five years with an average capital gain of £15,000 per property. The ultimate intent is to encourage tenants to make the transition from renting to homeowning.  

Are further stamp duty changes on the horizon? 

Many have urged Hammond to overhaul stamp duty in the Budget to boost the housing market. Last year’s Budget abolished the stamp duty for all first-time homebuyers. David Westgate, chief executive of Andrews Property Group, thinks a banding stamp duty should be proposed this year. 

However, some think that stamp duty will rise for buy-to-let investors. James Forsyth of The Spectator, known for his close connections to the Government, recently wrote a guest column for The Sun where he highlighted this prediction for the Autumn Budget.  

He wrote: “This would, so the thinking goes, raise money for the Exchequer and help keep house prices down… But if the Government is serious about helping more people on to the property ladder, as opposed to just raising yet more money from Stamp Duty, then what’s needed is changes to the planning laws to get far more homes built where people want to live.” 

Following Hammond’s speech on 29 October, MPs will discuss and vote on the suggested measures within the Autumn Budget. 

 

 

 

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT