Autumn Budget 2018: What it means for the Property Industry
On Monday the 29th October, Phillip Hammond announced the Autumn budget for the year . The chancellor covered a broad variety of topics, as well as with Brexit impending, we all sat in anticipation wondering what changes could conceivably be declared.
If you are in the property business and require a quick breakdown of every little thing the Chancellor declared that may impact you, read on. Sell Fast have actually taken out the key property industry associated takeaways from Hammonds 2018 budget declaration.
The government would be abolishing Stamp Duty for first time buyers who were purchasing properties for under £300,000, this was revealed last year by the Hammond. He has stated that this action helped 121,500 until now. However, we’re still encountering a property shortage and also there’s presently a ten year low with less people taking out mortgages.
So what was announced?
Stamp duty to be abolished for first time buyers of shared property proprietorship properties (when a person purchases somewhere in between 25% and 75% of a property and than decides rent out the rest). This applies to shared owner proprietorship worth up to ₤500,00.
A present there are in excess of 200,000 shared ownership properties in the UK.
Hammond revealed that the Help to Buy Scheme would come to an end in 2023. This is a two-year extension on its original completion date of 2021.
Government looking to simplify the process of transforming commercial buildings into homes– to turn unused High Road shops into residences to rejuvenate the British High Street.
Some do not agree with this and contend that ‘simplifying’ the process could mean loosened up building regulations as well as reduced quality accommodation consequently.
An additional ₤500m for the Housing Infrastructure Fund was guaranteed. This reserve is accessible to local councils to help with constructing more properties. Hammond believes that this infusion of money could mean 650,000 additional properties.
Hammond additionally reported he’s offering money to help 500 neighbourhoods allocate land for housing and sell the property to local residences at a discounted rate.
From April 2020 letting relief on Capital Gains Tax will be restricted to properties which has shared occupancy between the owner and tenant.