The government’s Autumn budget was announced today by Philip Hammond, chancellor of the exchequer. We summarise below what’s new for the housing sector following the announcement.
Stamp Duty changes for first-time buyers
Effective from today, first-time buyers will not pay Stamp Duty if the property they are buying is £300,000 or less.
Meanwhile, if you are a first-time buyer and the property you are purchasing is £500,000 or less, the first £300,000 will be exempt from Stamp Duty, but you will pay Stamp Duty on anything over £300,000 and under £500,000.
More new homes across the UK
As with previous budget announcements, there is a strong focus on the need to build more new homes to the satisfy demand for affordable housing and to alleviate the pressure on council waiting lists. That’s why today the government has pledged a total of £44 billion to create more new homes up until the mid-2020s.
A target has been set to build 300,000 new homes a year in England, while developments where planning permission has already been granted will be pushed through by the government to speed up construction.
More social housing
Housing associations will now become private bodies, writing off debts on the government’s balance sheet.
This means that housing associations will be able to build more affordable housing, if they’re able to secure the finance needed to do it. In conjunction with this, the rules on borrowing for local councils will be less strict, which will allow them perhaps to access finances more easily.
In addition, a £400 million fund is being created for estate regeneration to improve existing residential sites.
Inheritance Tax allowances are rising
The government is upholding their plans to increase inheritance tax thresholds, as well as making it possible for people to transfer ownership of their property before they pass away.
Currently the total inheritance tax allowance is £425,000 per person and the Transferable Main Residence Allowance is £100,000, but this will rise in steps each year until 2021.
More announcements in the budget include:
- Councils will be able to charge 100% council tax on empty properties
- Local governing bodies will be able to buy land off developers by compulsory purchase if the land is owned purely for financial gain.
