From tax hikes to a fresh raid on pensions tax relief, there are various tricks and treats the Chancellor could have in his Halloween Budget next week, but what has he got in store for housing?
Philip Hammond is set to deliver his Autumn Budget on Monday, a whole month earlier than usual, with many experts expecting Hammond to make a number of public spending announcements in relation to Brexit, the roll-out of Universal Credit and Theresa May’s pledge to promise to end austerity.
“This budget is going to be a very interesting one to watch because there is so much uncertainty around the UK economy at the moment,” said Mike Jakeman, senior economist advisor at consultancy PwC.
As far as the residential property market is concerned, Michelle Niziol, CEO of Michelle Niziol Bespoke Property Solutions, expects to see the Chancellor unveil some “pre-Halloween treats” next week.
She said: “The Chancellor has a tough task ahead with this month’s Brexit Budget, and pleasing everyone will be harder than in recent years.
“While it is difficult at this point in time to predict exactly what the Budget will contain, there could be some pre-Halloween treats for the housing market.
“What is clear, is that the decisions made by the government will be the result of a lack of affordable homes and new housing stock for our growing population to live in.”
Buy-to-let landlords have been penalised by the government in recent years, in a bid to free up housing stock for first-time buyers. But the Budget could see the government implement tax breaks for landlords who choose to sell their properties to long term tenants.
Niziol added: “The introduction of the new buy to let tax relief would benefit both the landlord and tenant, and enable more first time buyers to purchase their first home.
“Our message to landlords is to hold off selling your property. Renting is becoming less of a dirty word in British culture, purely because of the freedoms that renting allows.
“The marked increase in the quality of rental accommodation by private landlords and the likes of new build to rent developments, highlights that the property industry is committed to making tenancy an enjoyable option.
“In the long-term, the shift towards rental culture is only expected to gain strength, placing landlords and property investors in the perfect position to supply what the market desperately needs.
“I look forward to hearing the Chancellor’s plan to make housing at all levels more attainable for our citizens.”