What does the chancellor’s spring budget mean for the property sector? 

The chancellor Jeremy Hunt delivered his spring budget on 6 March, in what is likely to be his last set of financial announcements before the general election.

The run-up to his budget statement saw speculation about a range of possible measures – from inheritance tax cuts to new 99% mortgages. In reality, the budget delivered few headlines when it comes to homeowners and landlords.

Among the announcements was a reduction in the rate of capital gains tax from 28% to 24%. According to the chancellor, the cut will encourage those liable for the tax to sell or downsize, freeing up more properties for first-time buyers. However, fears have been expressed that it could encourage landlords to sell up, further restricting supply of homes in the private rented sector.

The chancellor announced an end to the multiple dwellings stamp duty relief for landlords. Introduced to support investment in the rental sector, the measure is believed to have not worked as intended.

Many in the industry had anticipated that the chancellor would make the current temporary stamp duty thresholds permanent in an effort to help movers. But there was no wider change to the tax.

Also affecting the housing sector was the announcement that tax breaks for people renting out short-term furnished holiday lets would be scrapped to boost the number of long-term homes for renters in areas where properties are scarce.

The idea of introducing 99% mortgages for high earners without a deposit was dropped in advance of the budget.

According to Rightmove’s property expert, Tim Bannister: “We had hoped the government would seize the opportunity to help first-time buyers and reform the outdated stamp duty system today. Instead, home-movers were left with extremely little.”

Read more about this story on the Property Reporter and Rightmove websites.