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How will the autumn statement affect the property market?

How will the Autumn Statement 2016 affect the property market?

In his first Autumn Statement, Chancellor Philip Hammond aims to increase productivity and create greater stability for businesses.

Here is a round-up of the announcements made that concern the property sector:

There will be a complete ban on charges that letting agents can levy on tenants. The measure has been brought in to save 4.3 million households hundreds of pounds.

A date for the ban has not yet been set, but the Chancellor stated in his announcement that he would welcome the change as soon as possible.

As part of a new National productivity investment scheme, £28bn will be spent on innovation and infrastructure. A specific Housing Infrastructure Fund of £2.3bn will deliver the infrastructure for up to 100,000 new homes in areas of high demand.

To boost housing supply, a £1.4bn investment in the delivery of 40,000 additional affordable homes will be made.

The National Housing Federation (NHF), which represents Housing Associations, said it was delighted with the announcement.

“Increased flexibility and extra investment will give housing associations the freedom and confidence to build even more affordable homes, more quickly, across the country,” said David Orr, chief executive of the NHF.

Relaxed government grant restrictions will facilitate a wider range of housing types and give developers better freedom of choice.

A large-scale regional pilot of Right to Buy for Housing Association tenants. There will also be support for home-ownership through the Help to Buy: Equity Loan Scheme and Help to Buy ISA’s.

He said it would involve 3,000 tenants being allowed to buy the homes they currently rent.

Additional factors that could lead to a hike in public spending are the National Living Wage increase for over 25’s from £7.20 to £7.50 as of April next year, as well as the rise in personal allowance to £11,500 next year (£12,500 long term) and threshold for higher tax rates to £50,000. These will be welcomed by professionals that fall into these brackets.

If any of this affects you but you’re not surely exactly how, book an appointment to have a chat with one of our agents.

How will the autumn statement affect the property market?
By David Price