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Autumn Budget 2023: 7 key takeaways for landlords

Written by Accommodation.co.uk | Nov 22, 2023 7:25:20 PM

Jeremy Hunt, the Chancellor, just unveiled the Autumn Statement 2023, unveiling over 100 measures. Landlords, here's a breakdown of the seven crucial takeaways.

This statement brings a slew of initiatives directly impacting letting agents and landlords. From relaxed planning rules to increased funding for local authorities, supporting lower-income households, and offering tax relief for the self-employed, there's much to note.

The Autumn Statement for 2023 outlines critical measures that directly affect landlords in the UK. Here are the key highlights:

  1. Local Housing Allowance Increases: The Local Housing Allowance will now cover at least 30% of local market rents, benefiting 1.6 million households with an average support of £800. This change directly impacts rental income and may affect affordability for potential tenants.
  2. Tax Cuts for Self-Employed Landlords: Self-employed landlords will experience tax cuts, with the abolishment of class 2 national insurance for those earning over £12,570 annually. These measures could potentially save self-employed landlords up to £350, impacting the financial landscape for those with larger property portfolios.
  3. Support for Homebuilding: The commitment to invest £110 million into nutrient mitigation schemes could result in the construction of 40,000 more homes. This increased homebuilding aims to alleviate pressure on the housing sector, potentially impacting both supply and demand dynamics for landlords.
  4. Property Development Opportunities: The consultation on converting homes into two flats under certain conditions opens up new avenues for property developers. Moreover, premium planning services across England aim to streamline processes for developers, potentially affecting the availability of different types of properties in the market.
  5. Business Rate Relief for Smaller Agencies: The freeze on the small business multiplier for another year provides relief to smaller agencies. These measures could benefit independent agencies, possibly influencing their operational costs and, indirectly, their services to landlords.
  6. Impact of Higher Wages: The increase in the National Living Wage to £11.44 an hour might impact tenant affordability and, consequently, rental demand in specific areas.

Pension Consolidation Affecting the Rented Sector: The consolidation of pensions into one pot streamlines savings for individuals. While not directly tied to landlord operations, this measure could have implications for the financial stability of tenants and their ability to afford rent.