Autumn Budget: what it means for the local property sector

Homebuyers, sellers and landlords in Portsmouth and Southsea are digesting the various measures impacting on residential property announced in the autumn Budget.

The Chancellor’s commitment to increase housebuilding nationally is set to offer a prospective boost to the sector by strengthening supply and prompting more transactions.

And while there had been much anticipation that Capital Gains Tax would increase, rates on residential property are to remain as they are at 18% for the lower rate and 24% for the higher rate.

On the downside, landlords face paying a higher stamp duty surcharge on second and additional homes. This could potentially affect investor confidence in Buy-to-Let properties.

Overall, the hope is that any property-related tax rises for individuals and businesses will be matched by government measures that create the conditions for economic growth and avoid a disincentive to market activity.

Certainly, we don’t want to see any further tax burdens imposed on the property industry in the near future.

Among the key headlines:

• The government will invest more than £5 billion in new homebuilding schemes across the country. Its target is 1.5 million new homes.
• £500 million is to go towards the affordable homes programme.
• New rates of Capital Gains Tax will match the unchanged residential property rates of 18% and 24%.
• The current Inheritance Tax threshold freeze is to be extended by a further two years to 2030. This means the first £325,000 of any estate can be inherited tax-free. In cases where the beneficiary is a direct descendant, this threshold is £500,000. If a tax-free allowance is passed to a surviving spouse or civil partner, the figure is £1 million.
• There is an immediate increase in the stamp duty land surcharge for second homes from 3% to 5%.
• The right to buy discount afforded to those who wish to buy their council house has been withdrawn.
• There is an additional £3 billion available to support Build-To-Rent sector through housing guarantee schemes.
• An additional £46m of funding is to go towards the recruitment and training of 300 graduates and apprentices working at local planning authorities.

Expert advice

As ever, those anticipating a house purchase, sale, investment or rental agreement must take care.

The key message is to ensure you take well-researched advice from property experts.

We’re always here if you want to have a chat about the financial side of homebuying, selling or renting.

Most homeowners in Portsmouth and Southsea can at least be cheered that even if they do have to pay more in property-related tax, the underlying value of their asset is still generally on the up.

For more information, we highlight a range of essential indicators about the local property scene on our website that you might find useful.

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