Last Wednesday we had the eagerly anticipated conservative budget 2017. With some reassuring news for the housing market, first time buyers and the North. Overall The recent budget has confirmed the government’s dedication to the Northern Powerhouse and deliver new property policies designed to benefit both purchasers and investors.
No Stamp Duty for FTBs
The main headline and those seeming to benefit most from the Chancellor’s Autumn budget looks to be first time buyers with stamp duty being abolished on properties up to £300,000. This means a stamp duty cut for 95% of first-time buyers who pay stamp duty, and 80% who would pay no stamp duty at all. The relief will not apply for purchases of properties worth over £500,000.
Mr Hammond announced the commitment of £44bn of capital funding to help build 300,000 homes annually by 2025. Over the next five years the government will aim to boost the supply of skills, resources and building land as well as creating financial incentives to create these homes. Mr Hammond claimed housebuilding is now at its highest level since the financial crisis. Extra money also looks to be allocated for the Home Builders Fund in order to get SME housebuilders building again.
Rents, Finance and tax
Raising income tax bracket – The personal allowance for income tax will be increased from £11,500 to £11,850 from April 2018, while the threshold at which you pay a higher rate of income tax will rise from £45,000 to £46,350.
Mileage rates for landlords
The government will continue to allow unincorporated landlords the choice to use either fixed mileage rates or actual vehicle running costs and capital allowances when it comes to calculating deductible motoring expenses.
Empty homes premium
The government is keen to encourage owners of empty homes to bring their properties back into use. To help achieve this, local authorities will be able to increase the council tax premium from 50% to 100%.
The government will consult on the barriers to landlords offering longer, more secure tenancies to those tenants who want them.
Review of build out
The government will set up a review panel to explain the significant gap between housing completions and the amount of land allocated or given planning permission, and make recommendations for closing it.
Register of planning permissions
The government will develop a central register of residential planning permissions from local authorities to improve information on where permissions are held and progress towards them being built.
Support for build to rent
Good news for those wanting flats in city centres – bit delivering little in the way of family housing.
The government will provide a further £630 million to accelerate the building of homes on small sites.
The Chancellor also announced the development of a local industrial strategy with Manchester, the West Midlands and north of the Tyne, with a focus on devolution to the regions vowing to give “power back to the people of Britain” and drive prosperity across the country.
So what does the Northern Powerhouse really mean for Manchester? The investment in the transforming cities fund as well as the improvements to transport and infrastructure laid out at this year’s’ party conference clearly shows the Government’s recognition of the growth Manchester has seen and the potential Manchester has to offer.
What are your thoughts on the 2017 budget?