Exploring the Impact of the Autumn Budget on Landlords
In his Autumn Statement, Chancellor Jeremy Hunt unveiled key measures set to influence both the rental market and the broader property industry...
One significant announcement is the increase in the Local Housing Allowance (LHA) next year, raising it to the 30th percentile of local market rents. This adjustment, advocated by numerous landlord and lettings agency groups, aims to support approximately 1.6 million households currently renting in private and social housing sectors. Hunt highlighted that this enhancement amounts to roughly £800 annually per household receiving LHA.
Regarding planning, a proposal is in the works for consultations on amending Permitted Development Rights. This amendment would enable the conversion of any house into two flats while maintaining the existing external appearance, signaling a potential shift in housing dynamics.
Households situated near new electricity infrastructure, such as pylons and substations, are slated to receive up to £1,000 annually off their energy bills, providing a welcomed relief.
Looking ahead, Hunt emphasized that starting from 2024, local authorities will have the capability to recuperate the complete expenses of large-scale planning applications in exchange for a guaranteed timeline for a planning decision—a move aimed at streamlining the planning process.
Furthermore, the extension of business rates relief by 75 percent for the retail, hospitality, and leisure sectors until 2025 serves as additional support in fostering stability within these industries.
These developments outlined in the Autumn Budget underscore a concerted effort to navigate challenges within the property landscape and aim to offer necessary support and flexibility for landlords and the wider property market.
Please note that this article is intended as a guide and does not constitute legal advice. For more information, please visit gov.uk.