Chancellor Philip Hammond has announced the government’s plans to launch a consultation ‘on barriers to longer tenancies in the private rented sector’.
In this month’s Autumn Budget, the Chancellor addressed the issue of security for tenants, hinting at possible tax breaks for landlords who offer longer tenancies.
Longer tenancies can be equally beneficial to landlords and tenants. Landlords can expect a regular, reliable income and fewer void periods while attracting tenants in search of longer, more secure tenancies.
However, landlords will have to wait for clarification as the Chancellor did not elaborate on his announcement.
The most headline-grabbing announcement of the Budget was the government’s plans to immediately scrap stamp duty for first-time buyers on properties up to £300,000. As this will not affect the majority of first-time buyers in London and other high-priced areas, the stamp duty exemption applies on the first £300,000 of the cost of a £500,000 property. 5% will apply for the remaining £200,000.
No new changes were made to stamp duty which would affect buyers at the top end of the property market.
Meanwhile, the Chancellor revealed plans to put £44 billion into supporting the housing market and the delivery of 300,000 new homes every year by the middle of the next decade, and giving councils the power to double council tax for those who leave properties lying empty.
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