Government to consult on tax incentives for longer tenancies
Chancellor Philip Hammond used the Autumn Budget to announce the government’s plans to open a consultation on tax incentives for longer tenancies.
This consultation will look at ways to potentially give tax breaks to landlords who offer longer tenancies, ensuring greater security for tenants.
Longer, more flexible and more secure tenancies will be of benefit to both landlords and tenants.
Of the Chancellor’s announcement, David Cox, Chief Executive of the Association of Residential Letting Agents (ARLA), said plans to encourage more secure tenancies is a positive one for the industry: “We are pleased that the government will consult on longer term and more secured tenancies, this feels to be in line with the holistic approach they are taking towards the rental market”.
Meanwhile, the lettings market should benefit from the government’s plans, announced in the Budget, to pour more investment into supporting the housing sector. £44 billion investment will be used to support the sector, and a target to build 300,000 new homes each year by the middle of the next decade has also been set.
But the main announcement concerning the property market was the abolition of stamp duty for first-time buyers on properties worth up to £300,000. For first-time buyers in more expensive areas, which naturally includes London, no stamp duty will be payable on the first £300,000 of the cost of a property worth up to £500,000.
This change to stamp duty for first-time buyers is effective immediately.
For more on this story, click the link below: