Autumn Budget 2018
By Alex at Aboda, Oct 30 2018 05:18PM
Stamp duty relief for first time buyers of full-priced houses and apartments is to be extended to first time buyers of shared ownership properties - but this was one of few housing measures in the Autumn Budget.
Addressing the Commons, Chancellor Phillip Hammond said first time buyer numbers were now at an 11-year high thanks to the stamp duty relief on mainstream homes announced last year - therefore he would extend this relief to first time buyers of shared ownership homes, applied retrospectively to late last year and applying to properties costing up to £500,000.
The Chancellor also confirmed previous announcements that the government was spending £44 billion on housebuilding and the stamp duty relief; there will also be a new strategic partnership for social housing with nine housing associations; there will also be a £1 billion boost in the form of Business Bank guarantees for small and medium sized housebuilders.
Although no reference to Help To Buy was made during the speech, a statement afterwards by the Home Builders Federation suggested that it would be extended to run until 2023 for first time buyers only. In addition - and again after the speech - it was revealed that the stamp duty surcharge for overseas buyers would be the subject of a consultation being launched in the New Year; the surcharge would be one per cent.
In his speech, Hammond told MPs that he wanted to ensure the private homes were kept out of the Capital Gains Tax regime; however, he did want to bring yet another rental activity into the tax net. So he announced that from April 2020 there will be limited tax relief on properties where the owner is in shared occupancy with the tenant - so for example, the current Rent A Room allowance and the increased letting of individual rooms through Airbnb and similar platforms. No further details were given during the speech.
So, it's good news for first-time buyers and house builders, but if you are renting a room in your own home, keep your eyes peeled and ears open over the coming years!
If you'd like any advice on the property market or your home, get in touch! I'll be happy to help in any way I can
Alex Doggett - Agency Owner
ABODA Fine Homes