The Chancellor of the Exchequer, Philip Hammond gave his first budget to parliament earlier this month. With only one mention of housing, many in the sector are aptly referring to the announcement as ‘the boring budget’.
With the most notable issue being the refusal to discuss housing, our residential property expert Diana Warr comments on the implications of the budget and what exactly Hammond omitted from his speech.
“Many buy-to-let landlords will have watched the budget expectantly as after pressure from the property industry it was anticipated that the chancellor might have discussed reducing or reversing the additional 3% stamp duty surcharge on second homes.
“There was also no mention of the tax relief for landlords, which are due to be cut next month. We are disappointed that the proposed tax cut still looks likely to go ahead and feel it will only create further pressure on landlords, which will in turn drive rents up or reduce the supply of rental property in the market.
“The Chancellor announced a £690million fund for English councils to invest in transport infrastructure. There is the strong possibility that this improvement in transport links could help boost local rental values, as has been proved by increased rents in the locations most likely to benefit from Crossrail and HS2.
“Unfortunately yesterday’s budget has provided us with more questions than answers and many of these will need further clarification before the real implications on the housing market can be assessed.”