Experience Invest looks what the upcoming Autumn Statement could mean for residential investment property.
On 23 November, Philip Hammond will deliver his first Autumn Statement.
In the wake of the Brexit vote, this will be the Chancellor’s first opportunity to outline his plans for taxes and spending.
With a slowdown in economic growth and the continued uncertainty surrounding Brexit, the Chancellor has already announced that the Autumn Statement will be ‘careful, considered and targeted’.
There has been a lot of speculation surrounding what will be announced in the first Autumn Statement since the result of the Brexit vote, but what will it mean for residential investment property?
Residential investment property
The government has put a lot of emphasis on housebuilding over the last few years yet, despite setting targets for new-build homes, there is a huge housing deficit.
It is expected that the Chancellor will continue to back housing schemes.
With a £3 billion housing fund already in place to help smaller firms build new homes, and £2 billion earmarked for building on surplus public sector land, it is thought that housing will continue to take priority.
According to WhatHouse? a new homes website, 61% of the general public think that the government should abolish the 3% Stamp Duty levy on buy-to-let and second homes which was introduced in April 2016.
Recent data has shown that the higher rate of tax has not deterred investors from buying residential investment property however, it is thought that rents have increased to balance the addition cost for landlords.
The higher rate of Stamp Duty tax has had an impact on second home buyers including parents buying a property for their children, holiday home buyers and even some first-time buyers.
“It’s time the new government reviews the additional stamp duty taxes aimed at buy-to-let investors and the most expensive properties. Actions need to be taken in order to create some movement in the market, and currently Stamp Duty Land Tax is slowing transactions down,” Robert Nichols, Managing Director of Portico, explains.
What lies ahead for the UK will not be clear until the new Chancellor delivers his Autumn Statement on 23 November however, it will be interesting to see what will be announced in the aftermath of June’s Brexit vote.
Use the comments box below to discuss what effect the Autumn Statement will have of residential investment property.