The prime London market has been dealt a blow with the Chancellor failing to make changes to stamp duty rates.
Despite mounting pressure to either reduce or abolish the 3% stamp duty surcharge on second homes and the stamp duty increases on properties worth over £1.5 million, the Chancellor made no reference to either in his speech.
The recent round of stamp duty hikes has been blamed for a lack of movement in the market, especially in the prime London market. The fall in the value of the pound in the wake of the EU referendum has enticed overseas buyers to invest in parts of London like Belgravia, and as demand continues to outweigh supply, prices remain steady.
The chronic lack of affordable housing in the UK was the main focus of this year’s Autumn Statement. What Hammond referred to as the ‘housing challenge’ will be met with a £1.4 billion investment to deliver 40,000 new affordable homes. London will receive £3.15 billion to build 90,000 affordable homes, while a £2.3 billion Housing Infrastructure Fund is being set up to provide 100,000 new homes in areas of high-demand.
The Chancellor also pledged continued support for home ownership through the Help to Buy schemes, while stressing a need to deliver a ‘housing market that works for everyone’. Letting agents will be banned from charging fees to tenants, and these charges will instead be passed onto landlords.
There was no change to Capital Gains Tax, which means that from 2019, this tax will need to be paid within 30 days of disposing of a residential property. In addition, Corporation Tax will be reduced to 17% by 2020.
For more information on the Autumn Statement 2016, click on the link below: