Chancellor Philip Hammond’s Autumn Budget has done little to help ‘generation rent’, according to the lettings industry, with few new ideas for increasing the supply of homes.
Speaking to The Negotiator, David Smith, Policy Director for the Residential Landlords’ Association, said: “Despite being given innovative suggestions to protect tenants in their homes, encourage sale to tenants, and improve energy efficiency, we got a damp squib with little more than promises of further consultations.”
The Chancellor also announced the reform of capital gains tax (CGT) lettings relief for landlords. From April 2020 people who let out their former home will no longer be eligible for up to £40,000 in lettings relief on the CGT they pay when they sell the property, unless held in shared occupancy with the tenant.
Meera Chindooroy, Policy and Public Affairs Manager at the National Landlords Association said: “It’s disappointing to see landlords being targeted again with the reduction in lettings relief on CGT, particularly when there was an opportunity to incentivise landlords through CGT relief.
“However, we’re glad the Chancellor didn’t seek to increase stamp duty or further reduce income tax relief for private landlords.”
Other budget announcements which could impact on landlords included a rise in the personal allowance threshold for income tax to £12,500 and a rise in the higher rate income tax threshold to £50,000.
Moves were also announced to smooth the controversial introduction of Universal Credit, including an extra £1bn to help welfare claimants transfer to the new consolidated benefit.
Meera Chindooroy said: “We will also be watching with interest to see what package of support the Government provides those receiving Universal Credit. Any help that can be provided is a positive, as this has the potential to go some way to reducing the amount of rent arrears Universal Credit tenants find themselves in.”