Chancellor Hunt's Autumn Statement & the Local Housing Market

Chancellor Hunt's Autumn Statement & the Local Housing Market

Property Sarah Mains 22nd November 2023

The Chancellor Jeremy Hunt announced on Wednesday lunchtime a series of changes in his Autumn Statement.

 

These changes, though not revolutionary, are set to benefit various sectors of the Low Fell property market, including private renters, landlords and first-time buyers.

 

One significant update is the increase in the Local Housing Allowance (LHA). Next year, the LHA will rise to cover the 30th percentile of local rental market rents. This adjustment, long advocated for by landlord and lettings agency groups, aims to assist approximately 1.6 million households in both private and social housing sectors. The impact of this change is substantial, translating to around £800 annually for each household receiving LHA. This will mean a significant part of the uplift in the rental market rents over the last few years will be covered by change.

 

The government's commitment to supporting first-time buyers is further underscored by the extension of the 95% Mortgage Guarantee Scheme. Originally set to expire sooner, the scheme is now extended until the end of June 2025, providing an additional 18 months of support. This extension is a strategic move to bolster the property market and assist those stepping onto the property ladder.

 

Additionally, there are proposed changes in planning regulations. The government is considering a shift in Permitted Development Rights, allowing the conversion of any house into two flats without altering the external appearance. This potential change could open new avenues for property development and utilisation, offering more flexibility in housing options.

 

Finally, the decrease in national insurance contributions will help everyone with their disposable income, and therefore, albeit in a very small way, should help buyers affordability (which has been stretched due to the recent increases in interest rates).

 

Should you have any questions with regard to the Low Fell property market, please don’t hesitate to give us a call on 0191 487 8855

   
 

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