Today’s Budget – How did it affect Housing?
The Chancellor delivered his Spring Budget today.
Many commentators predicted some relaxation and ‘rowing back’ on the recent changes which have hugely increased stamp duty on Buy to Let properties and houses worth £1m+ and are due to hit mortgage interest relief for landlords.
However, the Chancellor had very little to say about housing and there was no suggestion that the Government has decided that it’s ‘War on Landlords’ has gone too far.
Behind the headlines there were some announcements in the small print of the budget statement affecting the housing market. As your local property experts, we thought you would like to know what they are.
Rent-a-room relief – This is the interesting bit. The government will consult on proposals to redesign rent-a-room relief, to ensure it is better targeted to support longer-term lettings. The idea is that this will align the relief more closely with its intended purpose, and increase the supply of affordable long-term lodgings.
It is likely to mean that going forward, taking in a lodger or renting out a room in your house becomes even more attractive for homeowners who want to get some extra tax free income. Here at Trigg & Co we see this as a potentially big area of change in the lettings market. As new Buy to Let landlords become far more scarce as investors are hit by Government taxation changes already announced, we think longer term letting of single rooms, with ‘bills all included’ might really take off here on the Island.
Watch this space for more information. We will let you know as soon as more information becomes available.
Stamp Duty Land Tax – As a result of consultation, the government will delay the introduction of it’s reduction in the ‘filing and payment window’ until 2018-19. What this means in practice is that for 2017 property lawyers will still have 30 days from the completion date to do the necessary paper work and pay the stamp duty tax. So nothing for you to concern yourself with really.
Offshore property developers – The government will amend legislation to ensure that all profits realised by offshore property developers developing land in the UK, including those on pre-existing contracts, are subject to tax. Again, unless you are an overseas property developer, this won’t keep you up at night!
As always, if we can help you with any property related questions, or if you would like a FREE updated valuation of your home, please do get in touch.