Social care funding and education formed the focus of Chancellor Philip Hammond’s Spring Budget – but the property market was not even mentioned.
Many within the property industry had hoped for reform of the 3% stamp duty surcharge and mortgage interest tax relief, but no mention to either was made.
Some industry professionals have already expressed anger and disappointment at the Chancellor’s decision to bypass the property market completely, branding it a wasted opportunity to address key issues affecting the industry.
The Housing White Paper, published last month, set out the government’s plans to boost the supply of affordable new homes, but this wasn’t touched upon either in the Chancellor’s speech.
With no relief for private landlords, potential buy-to-let investors may be dissuaded from buying second properties to let out. With rental demand high, especially in London, there are fears this could result in rent rises for tenants, making it harder for tenants to save to buy their own property.
However, an issue which was aired by the Chancellor, the business rates revaluations, is an issue which particularly affects central London and the West End.
In a bid to reach out to smaller businesses, the Chancellor promised a cap (no more than £50 per month) on monthly rates increases for businesses leaving the small business tax relief regime. In addition, 90% of all pubs will be offered a £1000 discount on their business rates in 2017, while a £300 million discretionary fund will be available to local authorities to support hard-pressed businesses.
In other areas of the speech, the Chancellor confirmed that plans for Corporation Tax remain the same, while an extra tax for digital companies may go some way into helping high street estate agents facing competition from online-only agents.
For more information on the 2017 Spring Budget, click the link below: