Today Chancellor Philip Hammond will be delivering the 2018 Autumn Budget. This much-anticipated announcement is expected to provide us with insight of the Government’s plans for a post-Brexit UK.
But, more specifically, what should we expect, in terms of changes for the private rental sector (PRS)?
There are rumours circulating that landlords may be made exempt from Capital Gains Tax, if they decide to sell their rental property to the current tenant, under the provision that they have lived there for a minimum of three years.
On the other hand, there are worries that there may be a further increase to the Stamp Duty surcharge.
With the current talk around three-year tenancies, it is possible that we may see the introduction of tax break incentives for landlords who agree to offer such longer-term tenancies.
Rob Clifford, Commercial Director and Chief Executive of SDL Mortgage Services, has summarised the five things he would announce, if he were the Chancellor. These include lower costs for downsizers, support for buy-to-let investors, incentives for developers and planning reforms, and more help for first time buyers.
Overall, it can be said that there definitely needs to be an increase in support to the market, in order to help homebuyers across the UK.
Despite changes that may be brought about by the UK leaving the EU, the outlook appears to be positive, so far. Even with all the changes that have been put in place this year, such as higher Stamp Duty rates for additional properties, and the restriction of mortgage tax relief for buy-to-let investors, landlords continue to hold a long-term view for their portfolios.
It is thought that the Chancellor is due to deliver the “most keenly watched and important Budget” of his career, so we look forward to hearing what he has to say, later on today.