Chancellor places ban on letting agents’ fees for tenants
Chancellor Philip Hammond’s first (and apparently, last) Autumn Statement focused on ‘the housing challenge’ and the families who are ‘just about managing’.
In a bid to help financially squeezed renters, he has announced a ban on letting agents’ fees for tenants ‘as soon as possible’. Instead, landlords will be expected to foot the bill. But already there is speculation these costs will still be paid for by tenants through higher rents.
Lack of affordable housing is a key issue for the government and for London Mayor Sadiq Khan, and a key announcement is the Chancellor’s decision to award the capital £3.15 billion to build 90,000 new homes. £1.4 billion is being set aside for 40,000 affordable homes, while a £2.3 billion Housing Infrastructure Fund will provide 100,000 homes in areas where there is demand.
This investment in house building should go some way to easing the housing crisis, but more homes will still be needed.
Despite loud calls from the property industry to the new Chancellor to either alter or scrap the stamp duty increases introduced by Hammond’s predecessor, no reference to reforming stamp duty was made.
The extra 3% duty surcharge, which came into affect in April, will not be lowered or reversed. This has already affected buy-to-let investors and second home purchasers, slowing activity in the buy-to-let market. Prime central London property has also been affected by the introduction of higher stamp duty rates on properties worth over £1.5 million.
The Autumn Statement may have left you feeling disappointed, but that’s all the more reason to give us a call. We will maximise your property’s rental income and guarantee you a fixed monthly income for up to five years.
To find out more about the Autumn Statement 2016, click on the link below: