Autumn Budget 2017: What’s in store for Property?

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Published: 27/10/2017   Last Updated: 27/10/2017   Tags:

It is always difficult to predict what exactly will be in the Budget forthcoming. However many do attempt to speculate on what will happen.

Other than Phillip Hammond, Chancellor of the Exchequer going through the throws of usual spending and economic reform, the real question on our lips at the moment is what will the government be doing to prop up the economy with regards to the housing market.
There are calls for the eradication of the Clause 24, effective double taxation to landlords and investors and the reduction of the increased stamp duty on second homes or investment properties. Even with the increase in revenue from the increased SDLT the number of transactions decreased since the introduction date.

First Time Buyers

It is possible that Mr Hammond could remove SDLT for older homeowners so that they could downsize and free up their homes for younger families. Also calls for a reduction in the SDLT for first time buyers to prompt more uptake on this front.
However, this may be unlikely owing to the pressure to rescind the public sector pay cap. Taxes will rise in some guise, although it is unlikely to be the obvious headline rates of income tax or VAT.

Developers, large and small

Reforms around the section 106 agreements need to happen as this is where large developers pay money to local authorities in exchange for planning permission. Smaller developers simply don’t have the leverage in negotiation that the bigger developers have. An overhaul of the system could assist smaller developers.

So, we are going to have to wait and see on 22nd November 2017

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