Autumn Statement – Impact on Landlords
With the autumn statement released last week, it is important to be aware of the measures and how they could affect landlords.
Key measures:
Local Housing Allowance and other state benefits –
LHA is a benefit paid to those who live in private sector rented accommodation and who are claiming housing benefit or universal credit. This is set to be increased in 2024 to the 30th percent of local market rents. This is equivalent to £800 per year per household in receipt of LHA and is set to help 1.6 million households currently renting. Furthermore, national insurance is being cut by 2% and Universal credit is to rise by 6.7%.
Planning –
On planning, there will be a consultation on a change to Permitted Development Rights to allow any house to be converted into two flats, so long as there is no change to the external appearance. This could open new opportunities for landlords to let to more tenants.
Electricity bills –
Households close to new electricity infrastructure (pylons and sub-stations) will receive up to £1,000 per year off energy bills. This could benefit both tenants and landlords, depending on if the tenant pays the utility bills directly.
Reactions to the measures:
No cuts to inheritance tax –
On planning, there will be a consultation on a change to Permitted Development Rights to allow any house to be converted into two flats, so long as there is no change to the external appearance. This could open new opportunities for landlords to let to more tenants.
Benefit increases won’t help everyone who needs it –
On planning, there will be a consultation on a change to Permitted Development Rights to allow any house to be converted into two flats, so long as there is no change to the external appearance. This could open new opportunities for landlords to let to more tenants.
Lack of incentive for landlords –
Higher mortgage rates and market uncertainty has resulted in a reduction in buyer activity from landlords. Many were hoping that the autumn statement would provide some kind of incentive to keep landlords in the sector.
This content was exclusively prepared in collaboration with The Lettings Hub by award-winning Woodstock Legal Services.
Woodstock Legal Services are specialists in legal advice and solutions for the Private Rental Sector.
Conclusion
The Autumn statement has introduced measures that in theory should benefit tenants and landlords in the long run. However, many in the sector have expressed concern that the statement failed to introduce any meaningful measures to resolve current issues.
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