Delivered on the 17thNovember, Jeremy Hunt’s Autumn statement touched on several subjects such as the changes to the Stamp Duty tax, social renting and opportunities for first time buyers.
Stamp Duty changes
The Chancellor confirmed that the Stamp Duty Land Tax changes made during September’s ‘mini-budget’ would remain until March 2025 as a way to help the housing market through the challenging few years ahead. The aim is that from raising the threshold from £125,000 to £250,000 in England and Northern Ireland, this will encourage people to look to buying or moving property.
First Time Buyers Opportunities
First Time Buyers were given a boost during the Autumn Statement as it was stated that those buying their first home, won’t have to pay a penny of the Stamp Duty Land Tax on any property up to £425,000 (a large increase from the previous £300,000).
The announcement of the cut to the Capital Gains Tax exemption is a further disincentive for landlords. The tax-free allowance is set to drop by at least 50% in April this year, from £12,300 to £6,000; therefore landlords will be required to pay more tax on profits made when they sell a buy-to-let property.
However, this could likely lead to more landlords holding onto properties, which could improve the imbalance of rental demand and supply. It was also announced that from this year until 2024, the increase in social rent will be capped at a maximum of 7%.
Energy Price Guarantee
The Energy Price Guarantee was introduced in early October, with the purpose of limiting the amount households can be charged per unit of gas and electricity. In the Autumn Statement, the Chancellor mentioned that this scheme would continue, although at a reduced rate, from April 2023.
For those in Scotland, you are not impacted by the Chancellor’s announcement. The Scottish Government’s tax and spending plans for 2023- 24 were published in December 2022.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.